Virginia Gov. Ralph Northam announced Tuesday he signed nearly 70 bills into law, a few of which will affect taxes.
Two of the bills will affect statewide tax exemptions.
Under Senate Bill 727, which was sponsored by Sen. Jennifer McClellan, D-Richmond, the maximum length of real estate tax exemptions for structures in redevelopment, conservation areas or rehabilitation districts will increase from 15 years to 30 years. Although the bill’s fiscal impact statement stated this would decrease local government revenue in localities that enact such an exemption, there was no estimate on the total cost. It would not impact state revenue.
Senate Bill 685, which was sponsored by Sen. Monty Mason, D-Williamsburg, will permit tax exemptions for pollution control equipment and facilities that are intended to be used by a locality for water or solid waste management facilities on a prospective basis. Current law permits this exemption only for structures that are already built. The legislation will have an unknown impact on local revenue and likely a small impact on state revenue, according to the fiscal statement.
Two bills signed by Northam also will affect tax policy in Arlington County and the City of Chesapeake.
Senate Bill 107, which was sponsored by Sen. Janet Howell, D-Reston, removes the July 1, 2021, sunset date for legislation that allows Arlington County to impose a 0.25 percent occupancy tax for the purpose of tourism and business travel. Howell’s district encompasses part of Arlington County.
Senate Bill 163, which was introduced by Sen. Lionell Spruill, D-Chesapeake, will allow the City of Chesapeake to issue bonds to construct public facilities and retain sales and use taxes generated from the facility to pay off the bonds. It is currently not on the list of localities that can do this.
All of these bills will go into effect July 1. Each bill received some level of bipartisan support.
