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Commonwealth's Counties

BPOL Legislation Significantly Revised in Senate

HB 2200 (Robinson), as introduced, would mandate a deduction from gross receipts that would otherwise be subject to BPOL taxes for the amounts paid for anti-cancer drugs that are purchased by a medical practice and administered to patients whose treatment costs are paid for by Medicare, Medicaid, or TRICARE.  VACo was opposed to the original legislation, as it required this carveout, and set a precedent for other businesses seeking similar favorable tax treatment in the future.  The Senate Finance and Appropriations Committee heard the bill on February 16, and recommended a substitute that would instead require a workgroup to be convened to analyze and review current reimbursement and operational challenges for medical practices that administer anti-cancer drugs in an in-office setting to patients covered by Medicare, Medicaid, or TRICARE.  This bill is now on the Senate floor.  VACo appreciates members’ advocacy on this legislation.

HB 1470 (Watts) was also heard by the Senate Finance and Appropriations Committee last week.  The bill would provide that taxpayers who are eligible for the real property tax exemptions for disabled veterans and their surviving spouses and for the surviving spouses of servicemembers killed in action are entitled to refunds of taxes paid retroactive to their date of eligibility, potentially extending back to the date the exemptions were first enacted (2011 for the disabled veterans and surviving spouse exemption and 2015 for the exemption for surviving spouses of servicemembers killed in action).  Refunds for most local taxes extend back to the current and three prior years.  The bill seeks to clarify some ambiguity between the statutes enacting the property tax exemptions and the general statute governing tax refunds.  VACo had several conversations with the patron over the course of the session in hopes of establishing a reasonable lookback period that does not expose localities to potentially large, unanticipated refunds while also affording taxpayers a fair opportunity to apply for exemptions, but was unable to reach a compromise.  The bill was referred to the Joint Subcommittee on Tax Policy.

VACo Contact:  Katie Boyle

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