The VSCPA remains committed to advocating for quick conformity of Virginia’s tax code to that of the Internal Revenue Code (IRC) through standalone conformity legislation. Our original position also included a recommendation that a special non-reverting fund be created to capture any additional state revenue collected as the result of the Tax Cuts and Jobs Act (TCJA) of 2017, in order to allow for thoughtful dialogue on the development of a bipartisan plan that would balance the interests of the Commonwealth and its taxpayers.
With crossover occurring earlier this week and the Virginia House and Senate moving forward with their respective tax policy legislation, it is apparent that quick passage of a standalone conformity bill that would be effective immediately for the 2018 tax year is no longer a possibility. We now urge lawmakers to come to consensus on simple, straightforward policy changes that include tax conformity for 2018 and provide tax relief to Virginia taxpayers.
Hundreds of thousands of Virginia taxpayers have already filed their returns, many of which will need to be amended once final legislation is signed by the Governor and becomes effective. Additionally, hundreds of thousands of taxpayers will choose to file for an extension in order to avoid amending their returns. The longer Virginia taxpayers have to wait for clarity on conformity for the 2018 tax year, the greater disruption it will cause the Commonwealth and its citizens.
The legislative session ends Feb. 23, and there is still significant disparity between the House and Senate plans. While we remain committed to working with all members to move a consensus bill to the Governor’s desk for signature, we will continue to evaluate the situation and react as necessary to represent the interests of Virginia taxpayers and the members of the VSCPA.