Summary as introduced:
Taxation in the Commonwealth; income tax, sales tax, and credit for certain local taxes. Provides, for taxable years 2018 through 2022, a refundable credit against individual and corporate income taxes for a business's aggregate tax liability under the machinery and tools tax, the merchants' capital tax, and the business, professional, and occupational license (BPOL) tax.
The bill imposes a sales tax on all services except business-to-business, educational, health care, and real estate services. The bill requires the Department of Taxation (the Department) to assert the Commonwealth's jurisdictional nexus to tax services to the maximum extent allowed by Virginia and federal law and requires any person that furnishes services valued at $5,000 or more during a calendar year to register with the Department as a dealer.
The bill provides that food purchased for human consumption shall be exempt from state sales tax. Under current law, food purchased for human consumption is taxed at a reduced state rate of 1.5 percent and a local rate of 1 percent.
The bill eliminates the lowest two income tax brackets by providing that, starting with taxable year 2019, there shall be no income tax imposed on income of $5,000 or less.Full text:
01/09/18 House: Prefiled and ordered printed; offered 01/10/18 18102193D pdf | impact statement
01/09/18 House: Prefiled and ordered printed; offered 01/10/18 18102193D
01/09/18 House: Referred to Committee on Finance
01/29/18 House: Continued to 2019 in Finance by voice vote