Please contact your Delegate immediately and ask them to vote “NO” on HB 2104 (Byron) and HB 2447 (Marshall).
HB 2104 – Machinery and tools tax; valuation, appeal of certain local taxes:
Violates the principle of “uniformity” in assessment methodology established in Article X Sect. 1 & 2, of Virginia Constitution – a) Permits the taxpayer to effectively choose the method of assessment on individual pieces of equipment; b) Same piece of equipment will be valued differently for different companies; c) a business can have equipment assessed by three different methods on property within the same assessment. (see lines 184 – 186).
- Expands the Commonwealth’s authority over local taxation by limiting the authority and discretion of local officials, in particular based on valuation. The Virginia Department of Taxation nor the Tax Commissioner has the experience or expertise in evaluating Business Personal Property (BPP) or Machinery & Tools. (by the Tax Depts. est., $100,000 in addtl. FTE). The valuation of BPP and M&T is much more complex than is real property.
- Is labor intensive. Likewise, localities do not have the resources to institute this type of valuation methodology (est. $10,000,000 local addtl. FTE).
- Is redundant in many aspects – a) Local officials are already required to take into account technological obsolescence per section §58.1-3503; b) Taxpayers are already permitted to appeal to both the Tax Commissioner and Circuit Court. The bill will add an unnecessary layer of appeal.
House Finance Committee Members:
Ware (Chairman), Cline (Vice Chair), Orrock, Byron, Cole, Hugo, Marshall, R.G., Pogge, Head, Farrell, Fariss, Fowler, Bloxom, Freitas, Holcomb, Watts, Keam, Filler-Corn, Kory, Sullivan, Murphy, Heretick
HB2447 – Motor vehicles, local licensure; eliminates ability of a locality to assess local license fees:
Two-hundred-thirty-seven (237) Virginia localities (34 cities, 85 counties, 118 towns) currently impose the Motor Vehicle License Tax (Source: Virginia Local Tax Rates 2015; Weldon Cooper Center for Public Service). The overall statewide impact is a loss of more than $200 million in revenues to localities (Source: Auditor of Public Accounts, Commonwealth Data Point).
The bill, as drafted, eliminates Commissioner of the Revenue and Treasurer access to “law enforcement databases” (i.e. DMV database). (see lines 139-144).
House Transportation Committee Members:
Villanueva (Chairman), Hugo (Vice Chair), Garrett, Habeeb, Anderson, Minchew, Yancey, Dudenhefer, LeMunyon, Davis, Austin, LaRock, Pillion, Adams, Collins, Ward, Toscano, McQuinn, Carr, Filler-Corn, Plum, Bagby
For those of you who have a member on one of the above committees, please REPORT BACK TO ME the response you receive from your Delegate.