2010 Virginia General Assembly Session Watch
Click on the links below to learn more about potential legislation that could affect Virginia CPAs:
2010 Positions
Based upon member feedback, the VSCPA Board of Directors has approved the following positions on behalf of the VSCPA. Click on the bill number to view the current status or full text of the bill. Click here to read recent letters the VSCPA has sent to lawmakers regarding these issues.
Support
SB 178: Pass-through entities; penalties. This bill would revise the failure to file an information return and the failure to remit withholding tax penalties on pass-through entities.
The VSCPA supports this legislation because it makes penalty provisions of pass-thru entity returns consistent with those of other types of returns.
Final outcome: SB 178 was signed into law by Gov. McDonnell on March 13, 2010, with an effective date of January 1, 2009.
SB 179: Income tax laws; conformity to Internal Revenue Code. This bill would advance conformity with federal income tax laws to December 31, 2009, for taxable year 2009 and to December 31, 2010, for taxable year 2010, with three additional exceptions.
The VSCPA supports this bill and is encouraging legislators to take early action to avoid major problems for tax preparers.
Final outcome: SB 179 has been continued to the 2011 General Assembly session by the Senate Finance Committee at the request of the bill's patron.
SB 340: Retail Sales and Use Tax Act; conforms State to provisions of Streamlined Sales & Use Tax Agreement. This bill would conform Retail Sales and Use Tax Act to the state to provisions of the Streamlined Sales & Use Tax Agreement.
The VSCPA supports this bill because it would expand revenue base for sales tax without significant effort for anyone.
Final outcome: SB 340 has been continued to the 2011 General Assembly session by the Senate Finance Committee at the request of the bill's patron.
HB 384: Income tax, individual; reporting requirements.
The VSCPA supports this bill because it fixes an inequity in the statute by allowing claim for refund after action taken by a foreign state.
Final outcome: HB 384 was signed into law by Gov. McDonnell on April 7, 2010, with an effective date of July 1, 2010.
SB 545 and HB 614: Income tax laws; conformity to Internal Revenue Code.
The VSCPA supports these bills and is encouraging legislators to take early action to avoid major problems for tax preparers. Click here to read the VSCPA's position letter to legislators about SB 545 and HB 614.
Current status: Both SB 545 and HB 614 were left in House Appropriations and not acted on prior to adjournment. Tax conformity will now be addressed as part of the budget process. The proposed budget, as agreed to by the House and Senate, is now under review by Gov. McDonnell and includes tax conformity through January 22, 2010, with several exceptions.
HB 755: Wills & trusts; formula clauses referring to federal estate, generation-skipping transfer tax laws.
The VSCPA supports this bill because it fixes a hole in the code, as Virginia has no estate tax.
Final outcome: HB 755 was signed into law by Gov. McDonnell on April 7, 2010, with an effective date of April 7, 2010.
Oppose
HB 177: Seasonal tax preparation employees; disqualifies employee from receiving unemployment compensation.
While the VSCPA does not oppose limiting the ability of seasonal employees to collect unemployment compensation, a position which would be consistent with several other states, there are several problems in the legislation as it is now written. Click here to read the VSCPA's position letter to legislators about HB 177.
Final outcome: HB 177 was left in the House Commerce and Labor Committee and is no longer under consideration.
HB 622: Education & financial literacy; implement through relevant SOL and career and technical programs. This bill would allow local school boards to implement Virginia Board of Education (VBOA) objectives for economics education and financial literacy through other educational programs that meet VBOE objectives.
The VSCPA opposes this bill because it jeopardizes the standalone economics and personal finance graduation requirement.
Final outcome: HB 622 has been continued to the 2011 General Assembly session by the House Education Committee.
HB 1278: Income tax, state; changes filing and estimated tax returns date. This bill would change the filing and estimated tax return dates for state income tax.
The VSCPA opposes this bill because a state return cannot be filed until the federal return is completed, so a delayed filing date makes sense. The state filing deadline should continue to be later than federal as long as Virginia has retroactive fixed-date conformity.
Final outcome: HB 1278 was left in the House Finance Committee and is no longer under consideration.
HB 1314: State taxes, delinquent; persons appointed by State to collect shall be compensated. This bill would allow for persons appointed by the state to collect delinquent state taxes to be compensated.
The VSCPA opposes the passing on of the collection compensation as well as the third-party collection idea. The idea of outsourcing an inherently governmental function is that is should cost the Virginia Department of Taxation (TAX) less than doing it themselves. Taxpayers should not be liable to provide additional savings to the government.
Final outcome: HB 1314 was left in the House Finance Committee and is no longer under consideration.
Neutral
HB 196: Graduation requirements; delayed implementation.
The VSCPA was initially opposed to this bill, which would have repealed the requirement for economics education and financial literacy instruction in middle and high schools. As amended, the bill delays implementation of all new graduation requirements.
Final outcome: HB 196 was signed into law by Gov. McDonnell on March 9, 2010, and becomes effective on July 1, 2010.
SB 357 and HB 1045: Tax returns; electronic filing by certain tax preparers, employers, and dealers. This bill would lower the threshold for e-filing to 50 returns.
The threshold for e-filing federal returns recently became 10 returns or more, and Virginia’s legislation has a positive budget impact. Those two factors will make this legislation virtually unstoppable. The VSCPA took a neutral position.
Final outcome: SB 357 and HB 1045 were signed into law by Gov. McDonnell on March 11 and March 4, 2010, respectively. Both become effective on July 1, 2010.
Bills of Interest
The VSCPA and volunteer members have identified several additional bills that may of interest to Virginia CPAs. The VSCPA has not taken positions on these bills, but is monitoring them for informational purposes. Click here to review the full list of bills the VSCPA is monitoring and the status of these bills.
If you have questions or comments, contact VSCPA Government Affairs Director Emily Walker at (804) 612-9428.