Virginia House Bill 1863 (Prior Session Legislation)

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Spectrum: Partisan Bill (Republican 2-0)
Status: Introduced on January 10 2023 - 25% progression, died in committee
Action: 2023-02-07 - Left in Finance
Pending: House Finance Committee
Text: Latest bill text (Prefiled) [HTML]

Taxation in the Commonwealth. Makes numerous changes to Taxation in the Commonwealth. Makes numerous changes to the Commonwealth's tax structure with the intention of eliminating the personal income tax. The bill provides that beginning January 1, 2025, all income tax rates shall be reduced by 1.15 percent each year that a tax reduction condition, defined in the bill, is met. Under the bill, tax rate reductions shall occur each year and shall be cumulative until reaching zero. The tax reduction condition would be met and the tax rate reduction would occur in any fiscal year that the amount of general fund revenues collected plus the amount of additional general fund revenues, defined in the bill, is greater than or equal to the amount of general fund appropriations made for such fiscal year plus the amount of revenue reduction that would result from a 1.15 percent reduction in the individual income tax rate. Additional general fund revenues are defined in the bill as general fund revenues that would be generated as a result of the tax policy changes resulting from the bill. The bill would increase the sales and use tax rate to 5.3 percent beginning July 1, 2024, and would increase this rate by one percent each year until reaching 9.3 percent beginning July 1, 2028. The bill would increase the tax on cigarettes by three cents per cigarette and would double the statutory tax rate on tobacco products, with the revenues from such taxes to be deposited in the general fund. The motor vehicle sales and use tax rate would be increased by one percent beginning July 1, 2024, and would increase by one percent each year until reaching an additional five percent over current rates beginning July 1, 2028. The motor fuels tax would also be increased by five cents per gallon beginning July 1, 2024, with additional five cents per gallon increases until reaching an additional 25 cents per gallon beginning July 1, 2028. The bill requires all additional revenue generated by such tax increases to be deposited in the general fund. Finally, the bill directs the Secretary of Finance to convene a workgroup to recommend additional tax policy changes that would be needed to eliminate personal income tax liability.

Taxation in the Commonwealth; numerous changes to tax structure, report.

Del. Phillip Scott [R]

Del. Timothy Anderson [R]

Date	Chamber	Action
2023-02-07	House	Left in Finance
2023-01-19	House	Assigned Finance sub: Subcommittee #1
2023-01-10	House	Referred to Committee on Finance
2023-01-10	House	Prefiled and ordered printed; offered 01/11/23 23100231D

Chapter	Article	Section	Citation Type	Statute Text
58	1	1001	(n/a)	See Bill Text
58	1	1021.02	(n/a)	See Bill Text
58	1	2217	(n/a)	See Bill Text
58	1	2402	(n/a)	See Bill Text
58	1	320	(n/a)	See Bill Text
58	1	320.1	(n/a)	See Bill Text
58	1	603	(n/a)	See Bill Text
58	1	604	(n/a)	See Bill Text

Type	Source
Summary	https://lis.virginia.gov/cgi-bin/legp604.exe?231+sum+HB1863
Text	https://lis.virginia.gov/cgi-bin/legp604.exe?231+ful+HB1863+hil
Supplement	https://lis.virginia.gov/cgi-bin/legp604.exe?231+oth+HB1863F161+PDF