Read the full stored bill text
(SB30)
AMENDMENT PROPOSED BY THE SENATE
SEN. STURTEVANT
[REJECTED]
1.
Item
4-14
#6s
Effective Date
Effective Date
Language
Language:
Page 668, after line 29, insert:
"8. That §
58.1-3524
of the Code of Virginia is amended and reenacted as follows:
§
58.1-3524
. Tangible personal property tax relief; local tax rates on vehicles qualifying for tangible personal property tax relief.
A. For tax year 2006 and all tax years thereafter, counties, cities, and towns shall be reimbursed by the Commonwealth for providing the required tangible personal property tax relief as set forth herein.
B.
1.
For tax year 2006
and all tax years thereafter
through tax year 2027
, the Commonwealth shall pay a total of $950 million for each such tax year in reimbursements to localities for providing the required tangible personal property tax relief on qualifying vehicles in subsection C.
For tax year 2028 and all tax years thereafter, the Commonwealth shall pay a total of $950 million plus an amount as provided in subdivision 2 for each such tax year in reimbursements to localities for providing the required tangible personal property tax relief on qualifying vehicles in subsection D.
No other amount shall be paid to counties, cities, and towns for providing tangible personal property tax relief on qualifying vehicles.
2. a. For tax year 2028 and all tax years thereafter, the Commonwealth shall pay a total of $950 million plus the amount that is necessary to increase personal property tax relief in reimbursements to localities for providing the required tangible personal property tax relief on qualifying vehicles in subsection D. No other amount shall be paid to counties, cities, and towns for providing tangible personal property tax relief on qualifying vehicles.
b. The Tax Commissioner shall provide to the General Assembly and the Governor a written certification reporting the amount described in subdivision a as soon as practicable. For tax year 2028 and all years thereafter, the General Assembly shall appropriate funding to reimburse the amount described in subdivision a for tax year 2028 and all tax years thereafter.
3.
Each county's, city's, or town's share of
(i)
the $950 million for
each such
tax year
2006 through tax year 2027 or (ii) the amount provided in subdivision 2 a for tax year 2028 and all tax years thereafter
shall be determined pro rata based upon the actual payments to such county, city, or town pursuant to this chapter for tax year 2005 as compared to the actual payments to all counties, cities, and towns pursuant to this chapter for tax year 2005, as certified in writing by the Auditor of Public Accounts no later than March 1, 2006, to the Governor and to the
chairmen
Chairs
of the Senate Committee on Finance and Appropriations
and
,
the House Committee on Appropriations
, and the House Committee on Finance
. The amount reimbursed to a particular county, city, or town for tax year 2006 for providing tangible personal property tax relief shall be the same amount reimbursed to such county, city, or town for each subsequent tax year
through tax year 2027
.
The amount reimbursed to a particular county, city, or town for tax year 2028 and each subsequent tax year for providing tangible personal property tax relief shall not be in an amount below the same amount reimbursed to such county, city, or town in tax year 2027.
The reimbursement to each county, city, or town for tax year 2006 shall be paid by the Commonwealth over the 12-month period beginning with the month of July 2006 and ending with the month of June 2007, as provided in the general appropriation act. For all tax years subsequent to tax year 2006, reimbursements shall be paid over the same 12-month period. All reimbursement payments shall be made by check issued by the State Treasurer to the respective treasurer of the county, city, or town on warrant of the Comptroller.
C. For tax year 2006
and all tax years thereafter
through tax year 2027
, each county, city, or town that will receive a reimbursement from the Commonwealth pursuant to subsection B shall provide tangible personal property tax relief on qualifying vehicles by reducing its local tax rate on qualifying vehicles as follows:
1. The local governing body of each county, city, or town shall fix or establish its tangible personal property tax rate for its general class of tangible personal property, which rate shall also be applied to that portion of the value of each qualifying vehicle that is in excess of $20,000.
2. After fixing or establishing its tangible personal property tax rate for its general class of tangible personal property, the local governing body of the county, city, or town shall fix or establish one or more reduced tax rates (lower than the rate applied to the general class of tangible personal property) that shall be applied solely to that portion of the value of each qualifying vehicle that is not in excess of $20,000. No other tangible personal property tax rate shall be applied to that portion of the value of each qualifying vehicle that is not in excess of $20,000. Such reduced tax rate or rates shall be set at an effective tax rate or rates such that (i) the revenue to be received from such reduced tax rate or rates on that portion of the value of qualifying vehicles not in excess of $20,000 plus (ii) the revenue to be received on that portion of the value of qualifying vehicles in excess of $20,000 plus (iii) the Commonwealth's reimbursement is approximately equal to the total revenue that would have been received by the county, city, or town from its tangible personal property tax had the tax rate for its general class of tangible personal property been applied to 100 percent of the value of all qualifying vehicles.
3. Notwithstanding the provisions of subdivisions 1 and 2, beginning with tax year 2016
through tax year 2027
, each county, city, and town that receives reimbursement shall ensure that the reimbursement pays for all of the tax attributable to the first $20,000 of value on each qualifying vehicle leased by an active duty member of the United States military, his spouse, or both, pursuant to a contract requiring him, his spouse, or both to pay the tangible personal property tax on such vehicle. The provisions of this subdivision apply only to a vehicle that would not be taxed in Virginia if the vehicle were owned by such military member, his spouse, or both.
D.
For tax year 2028 and all tax years thereafter, each county, city, or town that will receive a reimbursement from the Commonwealth pursuant to subsection B shall provide tangible personal property tax relief on qualifying vehicles by reducing its local tax rate on qualifying vehicles to no greater than $0.00000001 per $100 of assessed value of the qualifying vehicle.
E.
On or before the date the certified personal property tax book is required by §
58.1-3118
to be provided to the treasurer, the commissioner of the revenue shall identify each qualifying vehicle and its value to the treasurer of the locality.
E.
F.
The provisions of this section are mandatory for any county, city, or town that will receive a reimbursement pursuant to subsection B.
9. The Tax Commissioner shall calculate the required distribution amounts for each locality consistent with the provisions of the eighth enactment of this Act no later than December 1 for tax year 2028 and June 1 for each subsequent tax year. Notwithstanding the reimbursement schedule set forth in the eighth enactment of this Act, under §
58.1-3524
(B), the Comptroller shall provide reimbursements to each locality consistent with the provisions of the eighth enactment of this Act, beginning with the month of January 2028 and ending with the month of June 2028, from the 2028 Personal Property Tax Relief Fund, established as a special nonreverting fund. Notwithstanding any other provision of this Act, the Comptroller, no later than August 1, 2026, shall transfer the following general fund amounts in this Act to the 2028 Personal Property Tax Relief Fund: $200,000,000 from the Central Maintenance Reserve (15776) authorized in Item C-26; $49,893,000 from the Central Reserve for Capital Equipment Funding (17954) in Item C-27; and $676,685,643 from the 2026 Capital Construction Pool (18805) authorized in Item C-29. Notwithstanding any other provision of this Act, the Comptroller, no later than August 1, 2027, shall transfer the following general fund amounts in this Act to the 2028 Personal Property Tax Relief Fund: $200,000,000 from the Central Maintenance Reserve (15776) authorized in Item C-26. Notwithstanding any provision of this Act, a total of $926,578,643 the first year and $200,000,000 the second year is hereby authorized for the projects listed below in this enactment and may be financed in whole or part through bonds of the Virginia College Building Authority, pursuant to §
23.1-1200
et seq., Code of Virginia, or the Virginia Public Building Authority, pursuant to §
2.2-2260
, Code of Virginia. Bonds of the Virginia College Building Authority issued to finance these projects may be sold and issued under the 21st Century College Program at the same time with other obligations of the Authority as separate issues or as a combined issue. The aggregate principal amount shall not exceed the listed amounts in this enactment plus amounts to fund issuance costs, reserve funds, original issue discount, interest prior to and during the acquisition or construction and for one year after completion thereof, and other financing costs. Debt service shall be provided from appropriations to the Treasury Board.
Agency Name/Project Title FY 2027 FY 2028 Item
Central Maintenance $200,000,000 $200,000,000 C-26
Reserve (15776)
Central Reserve for Capital $49,893,000 $0 C-27
Equipment Funding (17954)
2026 Capitol Construction $676,685,643 $0 C-29"
Pool (18805)
Page 668, line 30, strike "8." and insert "10."
Page 668, line 31, strike "9." and insert "11."
Page 668, line 31 after "third" strike "and".
Page 668, line 31 after "fourth" insert ", and eighth".
Explanation:
(This amendment requires localities levying a tangible personal property tax and receiving reimbursement under the Personal Property Tax Relief Act (PPTRA) for qualifying vehicles to reduce their local tax rate on qualifying vehicles to no greater than $0.00000001 per $100 of the eligible assessed value of the qualifying vehicles beginning in tax year 2028 and requires the Commonwealth to fund personal property tax relief by paying $950 million plus the amount that is necessary to fully cover the cost of the tax relief that localities must provide from reducing their tax rate. The ninth enactment authorizes general fund transfers totaling $1.1 billion from capital outlay appropriations as amended by the Committee to cover the cost of the reimbursement to localities for January 2028 through June 2028. In lieu of general dollars for those capital projects, this amendment authorizes the issuance $1.1 billion in tax-supported debt.)