Virginia taxpayers could be eligible for tax rebates of up to $500 under the new state budget passed by the General Assembly.
The compromise budget that state lawmakers approved at the beginning of June includes direct tax relief, authorizing rebate checks of up to $250 per single filer and $500 per married couple, slightly lower than what Republicans had first proposed.
“I believe we were able to build a budget that we can be proud of that encompasses state spending priorities and additional tax policy relief, while also upholding our tradition of strong fiscal management,” state Sen. Janet Howell said, according to the Washington Post.
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Virginians could be subject to the rebate, which is applicable to taxable years beginning on or after Jan. 1, 2021, but before Jan. 1, 2022, and an “individual filing a return on or before November 1, 2022 or married persons filing a joint return on or before November 1, 2022,” according to the legislation.
The rebate is slightly less than what Republican lawmakers first introduced, which would’ve paid individuals up to $300 and married couples up to $600.
The two-year spending plan also includes an increase in the standard deduction for single filers from $4,500 to $8,000. For married couples filing jointly, it would raise the standard deduction from $9,000 to $16,000.
Lawmakers fell short, though, of passing several items Republican Gov. Glenn Youngkin championed, including suspending the state’s gas tax and eliminating an additional 1% grocery tax that localities levy on top of the state tax, which was already slashed.
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The bill is now in Youngkin’s hands, and he is permitted to seek changes. Youngkin has already signaled he will be closely scrutinizing the budget for areas of improvement.
The budget, once finalized, will take effect July 1.
