Study Commission proposed to recommend changes to state and local taxation

February 2, 2016

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HB 214 (LeMunyon) requires dissolving the existing Joint Subcommittee to Evaluate Tax Preferences and creates a new joint subcommittee to evaluate all state and local taxes and subsume the tasks of the dissolved subcommittee.

The new joint subcommittee would be directed to recommend modifications to state and local taxes that would: (i) serve to make the Commonwealth’s state and local taxes simpler, more transparent, more efficient, more stable, fairer, less burdensome on economic activity, less burdensome on citizens with the lowest incomes by reducing or eliminating taxes on them, and, to the extent feasible, broader based in exchange for lower rates; (ii) produce sufficient revenue for the foreseeable future; and (iii) make the Commonwealth more competitive in relation to other states regarding job creation, business creation, and business expansion.

The joint subcommittee would be directed to examine the work, recommendations and reports from relevant private and public sources of information, including but not limited to the dissolved Joint Subcommittee to Evaluate Tax Preferences, the JLARC Tax Preferences Study, the Joint Subcommittee to Study and Revise Virginia’s State Tax Code, and the Commission on Virginia’s State and Local Tax Structure. The joint subcommittee would be directed to submit an executive summary of its findings and recommendations no later than the first day of the 2017 Regular Session of the General Assembly.

The joint subcommittee shall have a total membership of 13 members, consisting of seven legislative members and six non-legislative citizen members. Members shall be appointed as follows: four members of the House of Delegates to be appointed by the Speaker of the House of Delegates in accordance with the principles of proportional representation contained in the Rules of the House of Delegates; three members of the Senate to be appointed by the Senate Committee on Rules; two non-legislative citizen members to be appointed by the Speaker of the House of Delegates; two non-legislative citizen members to be appointed by the Senate Committee on Rules; and two non-legislative citizen members to be appointed by the Governor. The non-legislative citizen members shall be citizens of the Commonwealth of Virginia and shall have expertise in Virginia’s state and local taxes, economics of taxation, or tax accounting.

There are NO proposed local elected or appointed officials proposed on the Commission. VACo opposes the study Commission unless amendments reflect at least three local elected or appointed officials be appointed by VACo and VML. The bill will be up this week in House Rules Committee.

VACo Contact: Dean A. Lynch, CAE

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