2021 General Assembly Session

Taxation Related Legislation

2021 General Assembly Summary – Final Report
Taxation Related Legislation
Fairfax County Public Schools, Office of Government Relations

This report describes the Taxation related legislation considered during the 2021 General Assembly Regular, Special, and Reconvened Sessions.  Bills are listed as having Passed or Failed.  Any legislation labeled as Passed was signed by the Governor and will go into effect on July 1, 2021 unless otherwise specified in the legislation itself.

Summaries are linked to the Division of Legislative Services’ web pages for text, up to date summary information, and fiscal impact statements. If a bill of interest is not found in one category, please check another as legislation often can fit under multiple categories.

UPDATED: 04/26/2021

FAILED

Additional Local Sales and Use Tax to Support Schools SB 1170 (Norment) adds Isle of Wight County to the list of localities that, under current law, are authorized to impose an additional local sales and use tax at a rate not to exceed one percent, with the revenue used only for capital projects for the construction or renovation of schools.

Income Tax; Rate Increase; Funding for Schools and Law-Enforcement Officer Salaries SB 1286 (Deeds)  increases from 5.75 percent to 5.9 percent the income tax rate on income over $150,000. The bill  requires revenue from the increase to be appropriated for nonrecurring capital expenditures of school divisions and salary increases for state and state-supported law-enforcement officers.

Regulating Electronic Gaming Devices; Penalties SB 1407 (Bell, J.J.) authorizes the manufacturing, distributing, operating, servicing, hosting, and playing of electronic gaming devices in the Commonwealth, to be regulated by the Virginia Lottery Board, which the bill renames as the Virginia Lottery and Gaming Oversight Board. The bill would have specified the licensing requirements for the manufacture, distribution, operating, servicing, and hosting of electronic gaming devices, requires employees of such licensees to be registered with the Virginia Lottery, which the bill renames as the Virginia Lottery and Gaming Department, and imposes criminal and civil penalties for violations of the law and regulations related to electronic gaming devices. The bill imposes a 34 percent tax on all gross profits from the play of electronic gaming devices and provides for how the tax proceeds are disbursed; most are deposited into the Virginia Electronic Gaming Device Education Support Fund, created by the bill.

Sales and Use Tax Distribution to Localities; Report HJ 536 (Mugler)  directs the Joint Legislative Audit and Review Commission (JLARC) to study the distribution of remote sales and use taxes to localities.