Summary as introduced:
Individual income tax; deductions, exemptions, rates and credits. Incorporates changes to the individual income tax proposed by the Commission on Virginia's State and Local Tax Structure for the 21st Century. The proposed changes include (i) two levels of income tax rates (instead of four) of five percent (which increases to six percent on January 1, 2003) on the first $50,000 of taxable income and 5.75 percent (which increases to 6.75 percent on January 1, 2003) on taxable income greater than $50,000; (ii) standard deductions of $7,000 for married taxpayers and $3,500 for single and married-filing-separately taxpayers; (iii) replacement of personal exemptions on the state income tax return with a $125 credit for each personal exemption the taxpayer is allowed on his federal income tax return; and (iv) a state earned income tax refundable credit equal to 20 percent of the federal EITC.
The bill also increases the corporate income tax from six to seven percent and limits the rate localities may levy for the personal property tax to one cent per $100 of assessed value for tax years beginning on and after January 1, 2002. The Tax Commissioner will administer the additional income tax revenues and distribute them to the localities based on the residence of each individual taxpayer and each locality's share of total full-time employees.
01/19/01 House: Presented & ordered printed 011340776 pdf | impact statement
01/19/01 House: Presented & ordered printed 011340776
01/19/01 House: Referred to Committee on Finance
01/25/01 House: Assigned to Finance sub-committee: 1
01/31/01 House: Tabled in Finance (23-Y 0-N)