Bill Text: VA SB1386 | 2017 | Regular Session | Prefiled
Bill Title: Income tax, state; creates a new tax bracket for small businesses.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-01-25 - Stricken at request of Patron in Finance (16-Y 0-N) [SB1386 Detail]
Download: Virginia-2017-SB1386-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §58.1-320 of the Code of Virginia is amended and reenacted as follows:
§58.1-320. Imposition of tax.
A. A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual, except those set forth in subsection B, as follows:
Two percent on income not exceeding $3,000;
Three percent on income in excess of $3,000, but not in excess of $5,000;
Five percent on income in excess of $5,000, but not in excess of $12,000 for taxable years beginning before January 1, 1987;
Five percent on income in excess of $5,000 but not in excess of $14,000 for taxable years beginning January 1, 1987, through December 31, 1987;
Five percent on income in excess of $5,000 but not in excess of $15,000 for taxable years beginning January 1, 1988, through December 31, 1988;
Five percent on income in excess of $5,000 but not in excess of $16,000 for taxable years beginning January 1, 1989, through December 31, 1989;
Five percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning January 1, 1990;
Five and three-quarters percent on income in excess of $12,000 for taxable years beginning before January 1, 1987;
Five and three-quarters percent on income in excess of $14,000 for taxable years beginning January 1, 1987, through December 31, 1987;
Five and three-quarters percent on income in excess of $15,000 for taxable years beginning January 1, 1988, through December 31, 1988;
Five and three-quarters percent on income in excess of $16,000 for taxable years beginning January 1, 1989, through December 31, 1989; and
Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 1990.
B. In lieu of the rates set forth in subsection A, and for taxable years beginning on and after January 1, 2017, a tax is hereby annually imposed on the Virginia taxable income for each taxable year of every small business as follows:
One and three-quarters percent on income not in excess of $3,000 for taxable years beginning January 1, 2017, through December 31, 2017;
One and one-half percent on income not in excess of $3,000 for taxable years beginning January 1, 2018, through December 31, 2018;
One and one-quarter percent on income not in excess of $3,000 for taxable years beginning January 1, 2019, through December 31, 2019;
One percent on income not in excess of $3,000 for taxable years beginning on and after January 1, 2020;
Two and three-quarters percent on income in excess of $3,000 but not in excess of $5,000 for taxable years beginning January 1, 2017, through December 31, 2017;
Two and one-half percent on income in excess of $3,000 but not in excess of $5,000 for taxable years beginning January 1, 2018, through December 31, 2018;
Two and one-quarter percent on income in excess of $3,000 but not in excess of $5,000 for taxable years beginning January 1, 2019, through December 31, 2019;
Two percent on income in excess of $3,000 but not in excess of $5,000 for taxable years beginning on and after January 1, 2020;
Four and three-quarters percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning January 1, 2017, through December 31, 2017;
Four and one-half percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning January 1, 2018, through December 31, 2018;
Four and one-quarter percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning January 1, 2019, through December 31, 2019;
Four percent on income in excess of $5,000 but not in excess of $17,000 for taxable years beginning on and after January 1, 2020;
Five and one-half percent on income in excess of $17,000 for taxable years beginning January 1, 2017, through December 31, 2017;
Five and one-quarter percent on income in excess of $17,000 for taxable years beginning January 1, 2018, through December 31, 2018;
Five percent on income in excess of $17,000 for taxable years beginning January 1, 2019, through December 31, 2019; and
Four and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January 1, 2020.
C. For purposes of this section, "small business" means a sole proprietorship or pass-through entity, as defined in §58.1-390.1, with 25 or fewer employees.
