The Senate Finance Committee reported several bills on February 14 that are beneficial to local governments. VACo supports these measures.
HB 495 (Hodges) authorizes a local commissioner of the revenue, treasurer, or director of finance to disclose taxpayer information to a non-governmental entity with whom the locality has contracted to provide services related to tax administration, with the exception of auditing services. For the contractor to have access to this information, the contractor would agree to be bound by the confidentiality provisions that apply to the commissioner or treasurer. This legislation will assist localities that require outside expertise to undertake certain projects, such as upgrading software systems in commissioners’ or treasurers’ offices.
HB 119 (Thomas) provides localities an additional economic development tool by creating a separate class of merchants’ capital for certain wholesaler inventory, which would allow localities that impose a merchants’ capital tax to impose a lower tax rate on that inventory.
HB 1092 (Hodges) specifies that dredging projects, other than projects of the Virginia Port Authority (unless a locality is contributing to a Port Authority project), are eligible to be funded through tax increment financing.
VACo Contact: Katie Boyle