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2019 Session Watch

 

Click on the topics below to learn more about legislation that could affect Virginia CPAs:

If you have questions or comments, contact VSCPA Vice President, Advocacy Emily Walker, CAE, at (804) 612-9428 or follow her at twitter.com/VSCPAEmWalker.

 

Tax conformity | Top

Bill number (Patron) Bill summary Position  Status 
HB 1851 (Peace)
SB 1631 (Dunnavant)

Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, starting with taxable year 2018. The bill increases, starting with taxable year 2019, the amount of the standard deduction (i) from $3,000 to $6,000 for an individual or for married persons filing separately and (ii) from $6,000 to $12,000 for married persons filing jointly. Starting in 2020, the bill adjusts Virginia's standard deduction by the percentage increase in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the previous taxable year. In taxable year 2026, the standard deduction would return to $3,000 for an individual or a married person filing jointly and $6,000 for married persons filing jointly, coincident with the expiration of the individual income tax provisions of the federal Tax Cuts and Jobs Act (TCJA). Beginning in taxable year 2020, the individual tax brackets and the personal deductions will also be adjusted by the percentage increase of the C-CPI-U for the previous taxable year.

The bill reduces the corporate income tax from its current rate of six percent to five and one-half percent in 2018 and to five percent in 2019 and subsequent years. The bill provides that any additional revenues generated by the TCJA, beyond those revenues necessary to offset the reduction in revenues resulting from the provisions of the bill, shall be transferred to the Tax Policy Fund, created by the bill, to be used to provide tax reform to Virginia taxpayers starting in fiscal year 2020. The bill contains an emergency clause.

  HB 1851 was left in the House Rules Committee on Feb. 5. SB 1631 was incorporated into SB 1372 on Jan. 30.

HB 1980 (McNamara)

Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, and conforms to federal provisions that Virginia previously deconformed from, including the bonus depreciation deduction and the carry back of net operating losses.

 

 

 

 

 

HB 1980 was left in the House Rules Committee on Feb. 5.
HB 2086 (Watts)

Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018. However, for taxable years 2018 through 2025, the bill deconforms from the provisions of Public Law 115-97, known as the "Tax Cuts and Jobs Act," that would suspend the overall limitation on itemized deductions.

The bill increases, for taxable years 2018 through 2025, the amount of the standard deduction to $4,500 for single individuals and $9,000 for married couples. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married couples. The bill adjusts Virginia's standard deduction for taxable years 2019 through 2025 by the percentage increase in the Chained Consumer Price Index for all Urban Consumers (C-CPI-U) for the previous taxable year. The bill contains an emergency clause.

The bill allows low-income individuals and married persons to claim either (i) a nonrefundable income tax credit equal to $300 for each individual, his spouse, and any dependents or (ii) an income tax credit equal to 20 percent of the federal earned income tax credit, a portion of which would be refundable. Fifty percent of the value of the credit would be refundable in taxable year 2018, and the refundable portion would increase by five percent each year, becoming fully refundable starting in taxable year 2028. Under current law, low-income individuals and married persons may elect either of these amounts; however, both options for claiming the credit are nonrefundable.

  HB 2086 was left in the House Rules Committee on Feb. 5.
HB 2110 (Freitas)
SB 1225 (Chase)

Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, starting with taxable year 2018. The bill increases, starting with taxable year 2019, the amount of the standard deduction (i) from $3,000 to $6,000 for an individual or for married persons filing separately and (ii) from $6,000 to $12,000 for married persons filing jointly. Starting in 2020, the bill adjusts Virginia's standard deduction by the percentage increase in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the previous taxable year. In taxable year 2026, the standard deduction would return to $3,000 for an individual or a married person filing jointly and $6,000 for married persons filing jointly, coincident with the expiration of the individual income tax provisions of the federal Tax Cuts and Jobs Act (TCJA). Beginning in taxable year 2020, the individual tax brackets and the personal deductions will also be adjusted by the percentage increase of the C-CPI-U for the previous taxable year.

The bill reduces the corporate income tax from its current rate of 6 percent to 5.5 percent in 2018 and to 5 percent in 2019 and subsequent years. The bill provides that any additional revenues generated by the TCJA, beyond those revenues necessary to offset the reduction in revenues resulting from the provisions of the bill, shall be transferred to the Tax Policy Fund, created by the bill, to be used to provide tax reform to Virginia taxpayers starting in fiscal year 2020. The bill contains an emergency clause.

  HB 2110 was left in the House Rules Committee on Feb. 5. SB 1225 was passed by indefinitely in the Senate Finance Committee on Jan. 30.

HB 2355 (C. Jones)
SB 1320 (Hanger)

Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, including conformity to the federal Tax Cuts and Jobs Act. The bill also makes technical amendments and contains an emergency clause. An amended version of HB 2355 was incorporated into HB 2529 on Feb. 8. SB 1320 was incorporated into SB 1372 on Jan. 30.
HB 2673 (D. Adams)

Advances the Commonwealth's conformity with federal tax law to December 31, 2018, starting with taxable year 2019. The bill allows an individual taxpayer to itemize for state income tax purposes regardless of whether he itemizes on his federal return for taxable years 2019 through 2025. Current law requires a taxpayer to claim the standard deduction on his state return if he claims the standard deduction on his federal return.

The bill increases the standard deduction to $3,500 for single individuals and $7,000 for married persons filing jointly for taxable years 2019 through 2025. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married persons filing jointly.

The bill allows low-income individuals and married persons to claim either (i) a nonrefundable income tax credit equal to $300 for each individual, his spouse, and each claimed dependent or (ii) an income tax credit equal to 20 percent of the federal earned income tax credit, a portion of which would be refundable. Thirty percent of the value of the credit would be refundable for taxable years 2019 through 2025. Under current law, low-income individuals and married persons may elect either of these amounts; however, both options for claiming the credit are nonrefundable.

  HB 2673 was left in the House Rules Committee on Feb. 5.
HB 2765 (D. Adams)

Advances the Commonwealth's conformity with federal tax law to Dec. 31, 2018, starting with taxable year 2019. The bill increases the standard deduction to $3,750 for single individuals and $7,500 for married persons filing jointly for taxable years 2019 through 2025. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married persons filing jointly.

The bill allows low-income individuals and married persons to claim either (i) a nonrefundable income tax credit equal to $300 for each individual, his spouse, and each claimed dependent or (ii) an income tax credit equal to 20 percent of the federal earned income tax credit, a portion of which would be refundable. Sixty percent of the value of the credit would be refundable for taxable years 2019 through 2025. Under current law, low-income individuals and married persons may elect either of these amounts; however, both options for claiming the credit are nonrefundable.

The bill provides that each year up to $198 million of any additional revenues generated by the federal Tax Cuts and Jobs Act would be transferred to the Revenue Stabilization Fund.

  HB 2765 was left in the House Rules Committee on Feb. 5.
SB 1211 (Chafin) Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, including conformity to the federal Tax Cuts and Jobs Act. The bill raises Virginia's standard deduction to $6,000 per taxpayer or $12,000 for married persons filing jointly for taxable year 2018. In future tax years, the deduction will be adjusted by a percentage equal to the difference in the Chained Consumer Price Index for All Urban Consumers between the current year and 2018. The bill also contains an emergency clause.   SB 1211 was passed by indefinitely in the Senate Finance Committee on Jan. 30.
SB 1372 (Norment) Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, including conformity to the federal Tax Cuts and Jobs Act. The bill also eliminates an obsolete provision and contains an emergency clause.
Check mark on green background
An amended SB 1372, incorporating SB 1320, 1443, 1631 and 1739 and reinstating the emergency clause, was signed into law Feb. 15.
SB 1443 (Stuart)

Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, starting with taxable year 2018. The bill increases, starting with taxable year 2018, the amount of the standard deduction (i) from $3,000 to $6,000 for an individual or for married persons filing separately and (ii) from $6,000 to $12,000 for married persons filing jointly. Starting in 2019, the bill adjusts Virginia's standard deduction by the percentage increase in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the previous taxable year. In taxable year 2026, the standard deduction would return to $3,000 for an individual or a married person filing jointly and $6,000 for married persons filing jointly, coincident with the expiration of the individual income tax provisions of the federal Tax Cuts and Jobs Act (TCJA). Beginning in taxable year 2020, the individual tax brackets and the personal deductions will also be adjusted by the percentage increase of the C-CPI-U for the previous taxable year.

The bill reduces the corporate income tax from its current rate of 6 percent to 5.5 percent in 2018 and to 5 percent in 2019 and subsequent years and establishes subtractions from Virginia corporate taxable income for the amount of global intangible low-taxed income that is included in federal taxable income and the amount of business interest that is disallowed as a deduction from federal taxable income.

The bill provides that any additional revenues generated by the TCJA, beyond those revenues necessary to offset the reduction in revenues resulting from the provisions of the bill, shall be transferred to the Tax Policy Fund, created by the bill, to be used to provide tax reform to Virginia taxpayers starting in fiscal year 2020. The bill contains an emergency clause.

  SB 1443 was incorporated into SB 1372 on Jan. 30.
SB 1739 (Newman) Advances conformity of the Commonwealth's tax code with the federal tax code to Dec. 31, 2018, including conformity to the federal Tax Cuts and Jobs Act. The bill also directs any revenues collected by the Commonwealth as a result of the policy changes in the Tax Cuts and Jobs Act be deposited into the Taxpayer Relief Fund, created by the bill. The Department of Taxation is directed to issue refunds on a pro rata basis to taxpayers who filed returns in the immediately preceding taxable year based on the amount of revenues deposited in the Fund. The revenue collection and refund would remain in place through taxable year 2026, the year the individual taxpayer changes in the Tax Cuts and Jobs Act are set to expire. The bill contains an emergency clause.   SB 1739 was incorporated into SB 137 on Jan. 30.

Tax reform | Top

Bill number (Patron) Bill summary Position  Status 

HB 1618 (R.P. Bell)
SB 1237 (DeSteph)

Allows an individual taxpayer to itemize deductions for state income tax purposes regardless of whether he elects to itemize deductions on his federal return for taxable years 2018 through 2025. Current law requires a taxpayer to claim the standard deduction on his state return if he claims the standard deduction on his federal return. The bill contains an emergency clause.

 

 

 

 

 

HB 1618 was left in the House Rules Committee on Feb. 5. SB 1237 was incorporated into SB 1372 on Jan. 30.
HB 2160 (Plum)
SB 1297 (Barker)
Allows low-income individuals and married persons to claim either (i) a nonrefundable income tax credit equal to $300 for each individual, his spouse, and any dependents or (ii) a refundable income tax credit equal to 20 percent of the federal earned income tax credit claimed that year by the individual or married persons. Under current law, low-income individuals and married persons may elect either of these amounts; however, both options for claiming the credit are nonrefundable. The provisions of the bill apply to taxable years beginning on and after Jan. 1, 2019, but before Jan. 1, 2026.   HB 2160 was defeated in the House Finance Committee on Jan. 28. SB 1297 was passed by indefinitely in the Senate Finance Committee on Jan. 30.
HB 2442 (Wilt) Prohibits, beginning July 1, 2020, the accelerated collection of sales and use tax payments from retail merchants and other dealers who collect and return sales and use tax payments.   HB 2442 was laid on the table in a House Finance subcommittee Jan. 25.
HB 2529 (Hugo)

Deconforms the Commonwealth's tax code from the provisions of the federal Tax Cuts and Jobs Act (TCJA) that limit the deduction for state and local taxes and reduce the limits for the mortgage interest deduction.

The bill allows an individual taxpayer to itemize for state income tax purposes regardless of whether he itemizes on his federal return for taxable years 2019 through 2025. Current law requires a taxpayer to claim the standard deduction on his state return if he claims the standard deduction on his federal return.

The bill increases the standard deduction to $4,000 for single individuals and $8,000 for married persons filing jointly for taxable years 2019 through 2025. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married couples filing jointly.

The bill provides that any additional revenues generated by the TCJA, beyond those revenues necessary to offset the reduction in revenues resulting from the provisions of the bill, shall be transferred to the Tax Policy Fund, created by the bill, to be used to provide tax reform to Virginia taxpayers starting in fiscal year 2020.

Check mark on green background
An amended version of HB 2529, incorporating HB 2355, was signed into law Feb. 15.
HB 2700 (Orrock)
SB 1698 (Chafin)
Establishes a subtraction in computing Virginia taxable income for the amount of Global Intangible Low-Taxed Income that is included in a corporation's federal taxable income.   HB 2700 was tabled in the House Finance Committee on Jan. 28. SB 1697 was passed by indefinitely in the Senate Finance Committee on Jan. 30.
HB 2701 (Orrock)
SB 1697 (Chafin)
Establishes a subtraction from a corporation's Virginia taxable income for the amount of business interest that is disallowed as a deduction from federal taxable income by § 163(j) of the Internal Revenue Code.   HB 2701 was left in the House Finance Committee on Feb. 5. SB 1697 was passed by indefinitely in the Senate Finance Committee on Jan. 30.
HB 2704 (Bloxom) Provides that, if the General Assembly does not enact legislation during the 2019 Session giving at least $100 million in Virginia income tax relief to Virginia taxpayers, any additional revenues generated by the federal Tax Cuts and Jobs Act shall be transferred to the Tax Policy Fund, created by the act. The bill requires the Governor to submit, with his budget proposal for the 2020-2022 biennium, a plan to provide tax reform to Virginia taxpayers with revenues in the Tax Policy Fund. Such tax reform shall distribute such additional revenues to Virginia taxpayers proportionately on the basis of their Virginia income tax liability for taxable year 2018.   HB 2704 was left in the House Rules Committee on Feb. 5.
HB 2708 (Pogge) Allows an individual taxpayer to itemize for state income tax purposes regardless of whether he itemizes on his federal return. Current law requires a taxpayer to claim the standard deduction on his state return if he claims the standard deduction on his federal return.   HB 2708 was left in the House Rules Committee on Feb. 5.
SB 1531 (Sturtevant) Equalizes the Virginia standard deduction with the federal standard deduction. For taxable years beginning on and after January 1, 2018, but before January 1, 2019, the amount of the standard deduction shall be $12,000 per taxpayer or $24,000 for married persons filing jointly. In future tax years, the deduction will be adjusted by a percentage equal to the difference in the Chained Consumer Price Index for All Urban Consumers between the current year and 2018. The bill contains an emergency clause.   SB 1531 was incorporated into SB 1372 on Jan. 30.
SB 1572 (Norment) Raises the minimum threshold for filing a Virginia tax return to $15,000 for an individual and $30,000 for married persons filing jointly, for taxable years beginning on or after Jan. 1, 2019. Under current law, the minimum threshold for filing a Virginia tax return is $11,950 for an individual and $23,300 for married persons filing jointly for taxable years beginning on and after Jan. 1, 2012.   SB 1572 was passed by indefinitely in the Senate Finance Committee on Jan. 30.
SB 1630 (Norment) Entitles an individual to a tax refund equal to $150, or $300 for married persons filing a joint return. An individual will only be eligible for the credit if his tax liability after the application of deductions, subtractions, and credits exceeds $150, or for married persons filing jointly if their tax liability exceeds $300. The refund would apply to taxable years beginning on and after Jan. 1, 2018, but before Jan. 1, 2026. The bill contains an emergency clause.   SB 1630 was passed by indefinitely in the Senate Finance Committee on Jan. 30.
SB 1657 (McDougle) Creates a nonrefundable tax credit of $250 for individuals and $500 for married persons filing a joint return. The credit is available for taxable years 2018 through 2025 and is available only to taxpayers who elected to take the standard deduction on their federal tax returns. The bill contains an emergency clause.   SB 1657 was incorporated into SB 1372 on Jan. 30.
SB 1744 (Wagner) Increases the standard deduction to $4,000 for individuals and $8,000 for married persons filing joint returns for taxable year 2018. The bill contains an emergency clause.   SB 1744 was passed by indefinitely in the Senate Finance Committee on Jan. 30.

Remote sales tax (Wayfair) | Top

Bill number (Patron) Bill summary Position  Status 

HB 1722 (Bloxom)
SB 1294 (Howell)

Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $100,000 in annual gross revenue from sales in Virginia or at least 200 sales transactions in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax if its annual gross revenue from facilitated sales in Virginia exceeds $100,000 or it facilitates at least 200 sales transactions in Virginia. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that if a remote seller or marketplace facilitator collects an incorrect amount of tax, it shall be relieved of liability for failure to collect the correct amount if the error is the result of its reliance on information provided by Virginia. The bill also relieves a marketplace facilitator of liability if it collects an incorrect amount of tax based on certain incorrect information provided by a seller or purchaser.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.

 

 

 

 

 

An amended HB 1722 passed the Senate and House on Feb. 13 and is awaiting Gov. Northam's signature. SB 1294 was incorporated into SB 1083 on Jan. 24.
HB 2090 (Watts)
SB 1083 (Ruff)

Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $100,000 in annual gross revenue from sales in Virginia or at least 200 sales transactions in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax if its annual gross revenue from facilitated sales in Virginia exceeds $100,000 or it facilitates at least 200 sales transactions in Virginia. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that if a remote seller or marketplace facilitator collects an incorrect amount of tax, it shall be relieved of liability for failure to collect the correct amount if the error is the result of its reliance on information provided by Virginia. The bill also relieves a marketplace facilitator of liability if it collects an incorrect amount of tax based on certain incorrect information provided by a seller or purchaser.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.

  HB 2090 was left in the House Rules Committee on Feb. 5. An amended SB 1083, incorporating SB 1120, 1267, 1294, 1337, 1390, 1500, 1601 and 1767, passed the House and Senate on Feb. 13 and is awaiting Gov. Northam's signature.
HB 2801 (Brewer)

Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $250,000 in annual gross revenue from sales in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax on any sales facilitated in the Commonwealth. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that upon written application and for good cause shown, the Department shall have the discretion to temporarily suspend or delay the collection or reporting requirements of a marketplace facilitator or remote seller seller for a period not to exceed 184 days after collection is required. The Department is directed to implement protections from penalties and interest for marketplace facilitators that act in good faith but collect an incorrect amount of sales and use tax before January 1, 2026.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.

  HB 2801 was left in the House Rules Committee on Feb. 5.
SB 1267 (Stuart)

Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $100,000 in annual gross revenue from sales in Virginia or at least 200 sales transactions in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax if its annual gross revenue from facilitated sales in Virginia exceeds $100,000 or it facilitates at least 200 sales transactions in Virginia. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that if a remote seller or marketplace facilitator collects an incorrect amount of tax, it shall be relieved of liability for failure to collect the correct amount if the error is the result of its reliance on information provided by Virginia. The bill also relieves a marketplace facilitator of liability if it collects an incorrect amount of tax based on certain incorrect information provided by a seller or purchaser.

The bill allocates revenue from the state portion of remote sales and use tax collection to the Transportation Trust Fund but requires the revenue to be spent only to fund improvements to existing roads. The bill distributes the local portion to localities based on point of sale.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.

  SB 1267 was incorporated into SB 1083 on Jan. 24.
SB 1337 (Peake) Creates the Online Revenue Collection Fund for the collection of revenues generated in the event that the General Assembly adopts legislation requiring the remittance of sales and use tax by remote sellers and marketplace facilitators. Following the first full fiscal year in which the remittance of state sales and use tax by remote sellers and marketplace facilitators is required, the Commissioner of the Department of Taxation shall report on the total amount of revenues collected and shall calculate the amount by which the state sales and use tax rate could be reduced and replaced with revenues from the Fund so as to be revenue neutral.   SB 1337 was incorporated into SB 1083 on Jan. 24.
SB 1390 (Wagner) Repeals contingent provisions of bills adopted in prior sessions of the General Assembly related to the disposition of certain sales and use tax revenues that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. By repealing these provisions, any revenues generated from the remote collection of sales and use tax in the Commonwealth would be allocated in accordance with the existing sales and use tax allocation formula, and the gas tax will remain at its current rate.   SB 1390 was incorporated into SB 1083 on Jan. 24.
SB 1500 (Hanger)

Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $100,000 in annual gross revenue from sales in Virginia or at least 200 sales transactions in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax if its annual gross revenue from facilitated sales in Virginia exceeds $100,000 or it facilitates at least 200 sales transactions in Virginia. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that if a remote seller or marketplace facilitator collects an incorrect amount of tax, it shall be relieved of liability for failure to collect the correct amount if the error is the result of its reliance on information provided by Virginia. The bill also relieves a marketplace facilitator of liability if it collects an incorrect amount of tax based on certain incorrect information provided by a seller or purchaser.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.

  SB 1500 was incorporated into SB 1083 on Jan. 24.
SB 1601 (Norment) Requires certain marketplace facilitators and marketplace sellers, defined in the bill, to collect and remit sales and use tax if such facilitators or sellers make sales of tangible personal property or taxable services for delivery in the Commonwealth exceeding $100,000 or in 200 or more separate transactions. The bill provides that facilitators and sellers may enter into agreements regarding the fulfillment of the collection requirements. The bill prohibits class action from being brought against a marketplace facilitator on behalf of customers for overpayment of sales and use tax collected by the marketplace facilitator. The bill provides that the sales and use tax collection requirements shall not apply to any sales transactions occurring before July 1, 2019.   SB 1601 was incorporated into SB 1083 on Jan. 24.

Procurement/government contracting | Top

Bill number (Patron) Bill summary Position  Status 

HB 1796 (Cole)

Allows public bodies to request price information in a Request for Proposal for professional services.

 

 

 

 

 

HB 1796 was laid on the table in a House General Laws subcommittee on Jan. 15.
HB 2072 (J. Bell)
SB 1345 (Favola)

Provides that for competitive negotiation for professional services, a public body may conduct negotiations simultaneously with the top two ranked offerors if the public body does not request or discuss nonbinding estimates of total project costs at the discussion stage and as long as such process is set forth in the Request for Proposal.

  HB 2072 was laid on the table in a House General Laws subcommittee on Jan. 15. SB 1345 was defeated in the Senate General Laws & Technology Committee on Jan. 14.
HB 2271 (Poindexter) Prohibits public employers from permitting any person employed by a private entity to perform professional services for such private entity upon the premises of such public employer or otherwise share office space with the employees of such public employer. The bill also prohibits a public employer from accepting funds from a private entity for the purposes of employing a former or current employee of the private entity to perform professional services for the public employer. The bill defines "private entity" and "professional services."   HB 2271 was left in the House General Laws Committee on Feb. 5.
HB 2804 (LaRock) Requires state agencies contracting for professional and information technology project services to include provisions in such contracts that require contractors to install software that allows for verification of the number of hours worked on a project using a computer. The bill requires such software to be procured by the contractor and provides that data collected belongs to the contractor; however, the contractor is required to provide access to such data to the contracting state agency under certain terms and for a period of seven years.
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HB 2804 was laid on the table in a House General Laws subcommittee on Jan. 29.

Regulatory reform | Top

Bill number (Patron) Bill summary Position  Status 

HB 1939 (Webert)

Provides that following the close of any biennium, when the account for any regulatory board within the Department of Professional and Occupational Regulation shows that moneys collected on behalf of the regulatory board exceed 20 percent or $100,000, whichever is greater, of the expenses allocated to the regulatory board for the past biennium, the regulatory board shall (i) reduce the fees levied by it for certification, licensure, registration, or permit and renewal thereof so that the fees are sufficient but not excessive to cover expenses and (ii) distribute all unspent or unencumbered revenue in excess of such limits to current regulants of the board. Under current law, these boards are required to adjust their fees when their account shows expenses allocated to it for the past biennium to be more than 10 percent greater or less than moneys collected on behalf of the board. Current law does not require the boards to distribute excess funds to regulants.

 

 

 

 

 

An amended HB 1939 passed the Senate and House on Feb. 13 and is awaiting Gov. Northam's signature.
HB 2028 (Campbell)

Provides that when any legislative bill requiring the Department of Professional and Occupational Regulation to increase or begin regulation of an occupation is filed during any session of the General Assembly, the Board for Professional and Occupational Regulation shall prepare an evaluation of the legislation using criteria outlined in current law that the Board is required to use whenever the Board determines that a particular occupation should be regulated or that a different degree of regulation should be imposed on a currently regulated occupation.

  An amended HB 2028 passed the Senate Finance Committee on Feb. 18.
HB 2099 (Freitas) Implements the recommendations of the Joint Legislative Audit and Review Commission in its report on Operations and Performance of the Department of Professional and Occupational Regulation by deregulating opticians, residential energy analysts, and common interest community managers. The bill also reorganizes provisions of the Code relating to the Common Interest Community Board to account for the removal of regulatory authority over common interest community managers.   HB 2099 was left in the House General Laws Committee on Feb. 5.
HB 2101 (Freitas) Eliminates licensure requirements for landscape architects, soil scientists, and waste management facility operators. The bill contains technical amendments.   HB 2804 was left in the House General Laws Committee on Feb. 5.
HB 2327 (McNamara) Permits the Director of the Department of Professional and Occupational Regulation, or his designee, to issue a notice to any person unlawfully engaging in unlicensed practice of an occupation to cease and desist such activity.   An amended HB 2327 passed the Senate on Feb. 14 and the House on Feb. 18.
HB 2334 (Webert) Provides that any complaint alleging an act or omission of a regulant that is within the jurisdiction of any regulatory board under the Department of Professional and Occupational Regulation for which compliance has not been obtained shall not be closed at the intake stage, during the investigation, or at the close of an investigation unless such closure has been approved by the appropriate regulatory board.   HB 2334 was stricken from the docket in a House General Laws subcommittee on Jan. 24.
SB 1168 (DeSteph) Authorizes any regulatory board within the Department of Professional and Occupational Regulation to expunge the disciplinary record of a regulant, provided that (i) the regulant's written application for expungement is made at least five years from the date of final disposition of the disciplinary record, (ii) the disciplinary record is the only disciplinary record that the regulant has with a regulatory board, (iii) the regulant is not the subject of an active investigation related to professional or occupational conduct, (iv) the regulant is not in a current disciplinary status and any fees or fines assessed have been paid in full, and (v) the regulant has not had a disciplinary record previously expunged by the regulatory board. The bill defines "expungement" as the removal of a disciplinary record by (a) permanently sealing the affected record from public access, (b) deeming the proceedings to which the affected record refers as not having occurred, and (c) affording the affected party the right to represent that no record exists regarding the subject matter of the affected record. Under the bill, a regulatory board may use a previous discipline for any regulatory purpose or release records of a previous discipline upon request from law enforcement or any other governmental body as permitted by law.   A substitute version of SB 1168 was defeated in the Senate on Jan. 24.
SB 1751 (Ruff) Authorizes the dissemination of criminal history record information to the Department of Professional and Occupational Regulation (DPOR) for the purpose of investigating individuals for initial licensure, certification, or registration. Under current law, DPOR has that authority only for the initial licensure of real estate brokers and salespersons. The bill permits the Director of DPOR, or his designee, to issue a notice to any person unlawfully engaging in unlicensed practice of an occupation to cease and desist such activity. The bill provides that following the close of any biennium, when the account for any regulatory board within DPOR shows that moneys collected on behalf of the regulatory board exceed 125 percent or $100,000, whichever is greater, of the expenses allocated to the regulatory board for the past biennium, the regulatory board shall (i) reduce the fees levied by it for certification, licensure, registration, or permit and renewal thereof so that the fees are sufficient but not excessive to cover expenses and (ii) distribute all unspent or unencumbered revenue in excess of such limits to current regulants of the board. Under current law, these boards are required to adjust their fees when their account shows expenses allocated to it for the past biennium to be more than 10 percent greater or less than moneys collected on behalf of the board. Current law does not require the boards to distribute excess funds to regulants. The bill requires the Director of DPOR to report, at least annually, the fund status of each of the regulatory boards to the members of such boards. The bill also provides that when any legislative bill requiring DPOR to increase or begin regulation of an occupation is filed during any session of the General Assembly, the Board for Professional and Occupational Regulation shall prepare an evaluation of the legislation using criteria outlined in current law that the Board is required to use whenever the Board determines that a particular occupation should be regulated or that a different degree of regulation should be imposed on a currently regulated occupation. The bill deregulates residential building energy analysts, common interest community managers, and natural gas automobile mechanics and technicians and reorganizes provisions of the Code relating to the Common Interest Community Board to account for the removal of regulatory authority over common interest community managers.   A substitute SB 1751 passed the House and Senate on Feb. 13.

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Bill number (Patron) Bill summary Position  Status 
HB 2793 (Ayala) Requires any business to take all reasonable steps to dispose of, or arrange for the disposal of, customer records within its custody or control containing personal information when the records are no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or undecipherable. The measure requires any business that owns or licenses personal information about a customer to implement and maintain reasonable security procedures and practices appropriate to the nature of the information in order to protect the personal information from unauthorized access, destruction, use, modification, or disclosure. The measure also requires a manufacturer of a device or other physical object that is capable of connecting directly or indirectly to the Internet to (i) equip the device with reasonable security features, (ii) demonstrate conformity with industry standards for cybersecurity and resiliency, (iii) provide an opt-in forum or registration capability to allow consumers to know when a vulnerability or breach is discovered, (iv) make patch notification and end-of-life support events easily obtainable by registered users of the manufacturer's connected devices, and (v) when it is aware of existing vulnerabilities that put more than 500 users at risk, notify the office of the Chief Information Officer of the Commonwealth and provide remediation steps to consumers without unreasonable delay. The bill has a delayed effective date of Jan. 1, 2020.   HB 2793 was passed by indefinitely in a House Commerce and Labor subcommittee on Jan. 29.