Virginia legislative session heats up

After last year’s rolling income tax conformity legislation, it’s our first time in two decades without pushing for emergency tax conformity. 

By Emily Walker, CAE 

Virginia legislators convened on the Richmond capital on Jan. 10 for a long, 60-day session. This year finds lawmakers, staff, lobbyists and constituents scrambling to understand the Assembly’s new makeup. 

Redistricting brought a wave of retirements, followed by a few incumbents losing primary elections last year. In the November elections, additional incumbents lost seats and the Virginia House of Delegates flipped from Republican to Democratic control. In all, there are 35 new delegates and 18 new senators.  Sen. Scott Surovell (D) is the new Senate majority leader and Sen. Ryan McDougle (R) the new minority leader. With the change in control of the House, Virginia will have its fourth new speaker in the last six years in speaker-designee Don Scott (D). All House committees have new chairs and there are several new chairs in the Senate.   

Our advocacy efforts this year are underway, with a legislative fix for last year’s rolling income tax bill the top priority. Here is what we’re watching. 

Rolling conformity technical bill 

VSCPA member Del. Joseph McNamara, CPA, is sponsoring an uncontroversial bill to correct last year’s conformity legislation and Sen. Dave Marsden has the Senate version of the bill. H.B. 261 and S.B. 459 clarifies that the intent of the $75 million cap was to limit automatic conformity of the provisions with a fiscal impact under $15 million to no more than $75 million without specific action by the General Assembly. The bills make clear that provisions with a fiscal impact over $15 million will NOT be included in determining whether the $75 million threshold has been met.  

Virginia Board of Accountancy (VBOA) powers and duties 

We’re supporting HB 1337 and SB 463 that make minor updates related to the VBOA. In particular, the legislation formally moves the VBOA from the Secretary of Commerce and Trade to the Secretary of Finance, which had previously been done via Executive Order. In addition, the bill clarifies that certain historically accurate, biographical references to prior licensure are acceptable.  

Other issues 

We haven’t taken positions on any other legislation as of press time, but we’re watching and monitoring several tax-related bills. You can find the full list in our Online Bill Tracker. Questions about our legislative priorities and other advocacy? Reach out to me at [email protected]. 

VSCPA Vice President, Advocacy Emily Walker, CAE, is a 20-year veteran of the VSCPA. She supports all legislative and advocacy-related initiatives, including efforts to address the CPA pipeline. She sits on the AICPA National Pipeline Advisory Group.