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HB 785

  • Virginia House Bill
  • 2020 Regular Session
  • Introduced in House Jan 07, 2020
  • Passed House Feb 11, 2020
  • Passed Senate Feb 21, 2020
  • Became Law Apr 22, 2020

Localities; authority to levy taxes.

Abstract

Local tax authority. Modifies or eliminates several restrictions that apply to taxes imposed by counties, and establishes a new restriction on cigarette taxes imposed by any locality. The bill authorizes most counties to impose an admissions tax, not to exceed a 10 percent rate. Under current law, only certain counties may impose an admissions tax. The bill eliminates the limit on the rate of transient occupancy tax that a county may impose. The bill requires that any revenue attributable to a rate over two percent but not exceeding five percent must be dedicated to tourism marketing. Under current law, all counties may impose a transient occupancy tax of up to two percent, and certain counties may impose it up to a higher maximum rate. The bill authorizes any county to impose a cigarette tax up to a maximum rate of 40 cents per pack. It also provides that any locality that imposes such tax at a rate higher than 40 cents per pack may not increase such rate. The provisions related to the cigarette tax have a delayed effective date of July 1, 2021. Under current law, only certain counties may impose a cigarette tax, and cities and towns may impose such tax with no limit on the rate. The bill authorizes any county to impose a food and beverage tax of up to six percent and eliminates the requirement that a county hold a referendum before imposing such tax. Under current law, all counties may impose the tax after a referendum but the rate may not exceed four percent. This bill is identical to SB 588.

Local taxing authority. Equalizes city taxing authority and county taxing authority by granting a county the same authority to impose taxes on cigarettes, admissions, transient room rentals, meals, and travel campgrounds without limitation on the rate that may be imposed.The bill authorizes all counties to impose an admissions tax with no restriction on the rate. Under current law, only certain counties may impose an admissions tax, and the rate generally is capped at 10 percent. Under current law, all cities may impose the tax with no restriction on the rate.The bill authorizes all counties to impose a transient occupancy tax with no limitation on the rate that may be imposed. Under current law, counties generally are limited to a maximum rate of two percent, although certain counties may impose the tax at higher rates. The bill provides that, unless otherwise provided by law prior to January 1, 2020, the revenue from a tax rate above two percent up to five percent is restricted to tourism purposes and tax rates above five percent may be used as general revenue.The bill authorizes all counties to impose a cigarette tax with no restriction on the rate. Under current law, only Arlington County and Fairfax County may impose a cigarette tax, and the rate is limited to 30 cents per pack. Under current law, all cities may impose the tax with no restriction on the rate.The bill eliminates the limit of four percent on a county food and beverage tax (commonly referred to as the meals tax). Under current law, such limit applies to counties but not cities. The bill also removes the requirement that a county hold a referendum before imposing a meals tax. Under current law, such requirement applies to counties but not cities.The bill provides that no county that held a referendum prior to July 1, 2020, that was defeated may impose a certain tax until six years after the date of such referendum, unless a successful referendum was held after the defeated referendum and before July 1, 2020.

Local tax authority. Modifies or eliminates several restrictions that apply to taxes imposed by counties, and establishes a new restriction on cigarette taxes imposed by any locality. The bill authorizes most counties to impose an admissions tax, not to exceed a 10 percent rate. Under current law, only certain counties may impose an admissions tax. The bill eliminates the limit on the rate of transient occupancy tax that a county may impose. The bill requires that any revenue attributable to a rate over two percent but not exceeding five percent must be dedicated to tourism marketing. The provisions related to the transient occupancy tax have a delayed effective date of May 1, 2021. Under current law, all counties may impose a transient occupancy tax of up to two percent, and certain counties may impose it up to a higher maximum rate. The bill authorizes any county to impose a cigarette tax up to a maximum rate of 40 cents per pack. It also provides that any locality that imposes such tax at a rate higher than 40 cents per pack may not increase such rate. The provisions related to the cigarette tax have a delayed effective date of July 1, 2021. Under current law, only certain counties may impose a cigarette tax, and cities and towns may impose such tax with no limit on the rate. The bill authorizes any county to impose a food and beverage tax of up to six percent and eliminates the requirement that a county hold a referendum before imposing such tax. Under current law, all counties may impose the tax after a referendum but the rate may not exceed four percent. This bill is identical to SB 588.

Local taxing authority. Equalizes city taxing authorityand county taxing authority by granting a county the same authority to imposetaxes on cigarettes, admissions, transient room rentals, meals, and travelcampgrounds without limitation on the rate that may be imposed.The bill authorizes all counties to impose an admissions taxwith no restriction on the rate. Under current law, only certain counties mayimpose an admissions tax, and the rate generally is capped at 10 percent. Undercurrent law, all cities may impose the tax with no restriction on the rate.The bill authorizes all counties to impose a transientoccupancy tax with no limitation on the rate that may be imposed. Under currentlaw, counties generally are limited to a maximum rate of two percent, althoughcertain counties may impose the tax at higher rates. The bill provides that,unless otherwise provided by law prior to January 1, 2020, the revenue from atax rate above two percent up to five percent is restricted to tourism purposesand tax rates above five percent may be used as general revenue.The bill authorizes all counties to impose a cigarette taxwith no restriction on the rate. Under current law, only Arlington County andFairfax County may impose a cigarette tax, and the rate is limited to 30 centsper pack. Under current law, all cities may impose the tax with no restrictionon the rate.The bill eliminates the limit of four percent on a county foodand beverage tax (commonly referred to as the meals tax). Under current law,such limit applies to counties but not cities. The bill also removes therequirement that a county hold a referendum before imposing a meals tax. Undercurrent law, such requirement applies to counties but not cities.

Bill Sponsors (19)

Vivian E. Watts

  • Democratic
  • lower
  • 39
Primary

Terry G. Kilgore

  • Republican
  • lower
  • 1
Cosponsor

Hala S. Ayala

  • Democratic
  • lower
  • 51
Cosponsor

Wendy W. Gooditis

  • Democratic
  • lower
  • 10
Cosponsor

Elizabeth R. Guzman

  • Democratic
  • lower
  • 31
Cosponsor

Charniele L. Herring

  • Democratic
  • lower
  • 46
Cosponsor

Patrick A. Hope

  • Democratic
  • lower
  • 47
Cosponsor

Sally L. Hudson

  • Democratic
  • lower
  • 57
Cosponsor

Chris L. Hurst

  • Democratic
  • lower
  • 12
Cosponsor

Mark L. Keam

  • Democratic
  • lower
  • 35
Cosponsor

Kaye Kory

  • Democratic
  • lower
  • 38
Cosponsor

Paul E. Krizek

  • Democratic
  • lower
  • 44
Cosponsor

Alfonso H. Lopez

  • Democratic
  • lower
  • 49
Cosponsor

Kenneth R. Plum

  • Democratic
  • lower
  • 36
Cosponsor

Ibraheem S. Samirah

  • Democratic
  • lower
  • 86
Cosponsor

Mark D. Sickles

  • Democratic
  • lower
  • 43
Cosponsor

Marcus B. Simon

  • Democratic
  • lower
  • 53
Cosponsor

Richard C. "Rip" Sullivan, Jr.

  • Democratic
  • lower
  • 48
Cosponsor

Kathy K.L. Tran

  • Democratic
  • lower
  • 42
Cosponsor

Votes


Actions


Apr 22, 2020

House

Placed on Calendar

House

Enacted, Chapter 1214 (effective - see bill)

Senate

Signed by President as reenrolled

House

Signed by Speaker as reenrolled

House

Reenrolled bill text (HB785ER2)

House

Reenrolled

Office of the Governor

Governor's recommendation adopted

Senate

Senate concurred in Governor's recommendation (28-Y 12-N)

House

VOTE: (55-Y 36-N 1-A)

House

House concurred in Governor's recommendation (55-Y 36-N 1-A)

Apr 11, 2020

House

Governor's recommendation received by House

Mar 24, 2020

House

Impact statement from TAX (HB785ER)

Mar 20, 2020

House

Enrolled Bill communicated to Governor on March 20, 2020

Office of the Governor

Governor's Action Deadline 11:59 p.m., April 11, 2020

Mar 19, 2020

House

Signed by Speaker

Mar 18, 2020

Senate

Signed by President

House

Enrolled

Mar 08, 2020

House

VOTE: Adoption (56-Y 38-N 1-A)

Senate

Conference report agreed to by Senate (26-Y 13-N)

House

Conference report agreed to by House (56-Y 38-N 1-A)

Mar 07, 2020

Virginia General Assembly

Amended by conference committee

House

Second Conference substitute printed 20109968D-H3

House

Second conferees appointed by House

Senate

Second conferees appointed by Senate

Senate

Senate acceded to request for second conference committee (26-Y 13-N)

House

House requested second conference committee

House

Reconsideration of conference report agreed to by House

House

VOTE: Adoption (60-Y 36-N 1-A)

House

Conference report agreed to by House (60-Y 36-N 1-A)

House

First Conference substitute printed 20109832D-H2

Mar 02, 2020

Senate

Conferees appointed by Senate

Feb 28, 2020

House

House acceded to request

House

Conferees appointed by House

Feb 27, 2020

Senate

Senate requested conference committee

Senate

Senate insisted on substitute (37-Y 1-N)

Feb 25, 2020

House

Placed on Calendar

House

VOTE: REJECTED (0-Y 98-N 1-A)

House

Senate substitute rejected by House 20108384D-S1 (0-Y 98-N 1-A)

Feb 21, 2020

Senate

Read third time

Senate

Passed Senate with substitute (23-Y 12-N)

Senate

Engrossed by Senate - committee substitute HB785S1

Senate

Committee substitute agreed to 20108384D-S1

Senate

Reading of substitute waived

Feb 20, 2020

Senate

Constitutional reading dispensed (40-Y 0-N)

Feb 19, 2020

Senate

Reported from Finance and Appropriations with substitute (15-Y 1-N)

Senate

Committee substitute printed 20108384D-S1

Feb 13, 2020

House

Impact statement from TAX (HB785H1)

Feb 12, 2020

Senate

Referred to Committee on Finance and Appropriations

Senate

Constitutional reading dispensed

Feb 11, 2020

House

VOTE: Passage (60-Y 38-N 1-A)

House

Read third time and passed House (60-Y 38-N 1-A)

Feb 10, 2020

House

Committee substitute agreed to 20107846D-H1

House

Engrossed by House - committee substitute HB785H1

House

Read second time

Feb 07, 2020

House

Passed by for the day

Feb 06, 2020

House

Read first time

Feb 05, 2020

House

Incorporates HB977 (Krizek)

House

Reported from Finance with substitute (13-Y 9-N)

House

Committee substitute printed 20107846D-H1

Feb 03, 2020

House

Subcommittee recommends reporting with amendment (6-Y 4-N)

House

House committee, floor amendments and substitutes offered

Jan 29, 2020

House

Assigned Finance sub: Subcommittee #2

Jan 15, 2020

House

Impact statement from TAX (HB785)

Jan 07, 2020

House

Prefiled and ordered printed; offered 01/08/20 20104813D

House

Referred to Committee on Finance

Bill Text

Bill Text Versions Format
Engrossed by Senate - committee substitute HB785S1 HTML
HB785H2 HTML
HB785H3 HTML
Bill text as passed House and Senate (HB785ER) HTML
Reenrolled bill text (HB785ER2) HTML
Acts of Assembly Chapter text (CHAP1214) HTML

Related Documents

Document Format
Amendment: HB785AG HTML
Amendment: HB785AC HTML

Sources

Data on Open States is updated nightly from the official website of the Virginia General Assembly.

If you notice any inconsistencies with these official sources, feel free to file an issue.