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A BILL to amend and reenact §
58.1-320
of the Code of Virginia and to amend the Code of Virginia by adding a section numbered
58.1-320.1
, relating to imposition of income tax.
Be it enacted by the General Assembly of Virginia:
1. That §
58.1-320
of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered
58.1-320.1
as follows:
§
58.1-320
. Imposition of tax.
A tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows:
Two
1. For taxable years beginning before January 1
, 2026, two
percent on income not exceeding $3,000;
Three
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
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
five
and three-quarters percent on income in excess of $17,000
for taxable years beginning on and after January 1, 1990
.
2. For taxable years beginning on and after January 1, 2026, 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 $17,000; five and three-quarters percent on income in excess of $17,000 but not in excess of $1
million
; and 10 percent on income in excess of $1
million
.
§
58.1-320.1
.
Distri
bution of revenue
.
A.
From the
revenue collected on income
in excess of $1 million
taxed at the rate of
10
percent pursuant to
subdivision 2 of
§
58.1-320
,
four and one-quarter
percent
of such revenue
shall be apportioned as follows:
1.
Fifty percent of
such
revenue shall be used to provide additional basic aid funding for public sch
ools, which shall be apportioned to local school boards pursuant to Article 1 (§
22.1-88
et seq.) of Chapter 8 of Title 22.1.
2. Thirty
percent of such revenue shall be dedicated to
the Child Care Subsidy Program administered by the Department of Social Services
and overseen by the Virginia Department of Education
pursuant to
the partnership entered into on July 1, 2021
,
in accordance with the powers prescribed under §
22.1-289.03
.
3
. Twenty
percent of such revenue shall be dedicated to the Virginia Housing Trust Fund established pursuant to §
36-142
.
B
.
Any funds distributed p
ursuant to
this section
shall not be used to supplant any funds
otherwise
provided by the Commonwealth
but shall be used to increase the total amount of funds available to such programs.