News and Notes from the Virginia General Assembly
Tuesday, February 21, 2012
Unitary Combined Reporting
HB1267, introduced by Delegate James Scott, would have required mandatory combined reporting for corporate income tax purposes. The bill was tabled by the House Finance Committee. The Chambers opposed this measure that would have adversely affected Virginia Corporations.
HB1248, introduced by Delegate L. Scott Lingamfelter, would provide transportation funding initiatives from a portion of sales tax revenues and operating surpluses to be directed to the transportation maintenance fund. SB639 (the Senate version introduced by Senator Frank Wagner) indexes the gas tax to inflation. The indexed amount for this year would result in an increase from 17.5 to 17.7 cents per gallon.
Budget Process Nearing Deadlines
The House Appropriations Committee and Senate Finance Committee will report amendments to Governor Bob McDonnell’s proposed FY2013 – 2014 budget on Sunday, February 19. Plans for the remainder of FY2012 will also be offered.
Machinery and Tools Tax Bill Amended
SB549, introduced by Senator Frank Wagner, has been amended to transform it to a state grant program rather than a tax reduction on machinery and tools. Localities have the ability to increase the machinery and tools tax rates without impacting the eligibility of manufacturers to participate in the state grant program.
SB368, introduced by Senator Bryce Reeves, extends the sunset on the Major Business Facilities job tax credit for two years.
SB112, introduced by Senator Ryan McDougle, exempts certain computer hardware and software from sales and use tax to support the creation of data centers.
Tax Credit for Private Schools Advances
SB131, introduced by Senator William Stanley, allows for a tax credit of 65% and a cap of $25 million for contributions to private schools. Students could receive a scholarship if their family income is 300% of the current federal poverty guidelines or less. Corporations would donate to a nonprofit that would distribute the scholarships.
House Budget Proposal to Include Health-Care Safety Net Additions
Delegate Chris Jones delivered a key speech on the House floor on Friday outlining his Chamber’s amendments to Governor McDonnell’s budget proposal. Delegate Jones indicated that Free Clinics, Community Health Centers and Dental services along with additional Medicaid funding to hospitals and nursing homes will be submitted as part of the House budget.
Congressional Primary Date Depends on Redistricting
Virginia’s congressional redistricting plan has been approved by the legislature and signed by the Governor. In the event that the justice department does not approve the new maps, the legislature has approved a measure that moves the primary from June 12 to August 21. In the future, there is also a bill patroned by Delegate Mark Cole that would synch Virginia congressional primaries with the Presidential primary every four years.
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