We do not want this tax! Thank you, Dean Dye

We do not want this tax! Thank you, Dean Dye

We do not want this tax! Thank you, Dean Dye

Please vote "NO" Thanks

I oppose HB2157. The Estate Tax is regressive and punishes families who have worked hard to build or maintain a family business or farm operation or who prudently invested and saved their finances to build a nest egg for their survivors, perhaps even those who are not able to work or care for themselves on their own. It violates every principle of fair taxation and amounts to double taxation as the earnings were taxed when the owner was alive. Please Oppose HB 2157!

The closely held business definition is unclear and family owned manufacturers cannot determine the impact of this bill. Further, reinstituting the Estate Tax will provide a clear pathway for future efforts to redefine who qualifies and easier opportunities to increase the Estate Tax. Family businesses need certainty and this bill will increase uncertainty for future investments.

Virginia Loggers Association and its members believe reinstatement of HB 2157 will eliminate small family-owned businesses making up the forest harvesting sector. Forest products make up Virginia's third largest industry. The forest harvesters are all smaller family - owned business owners whose sustainability and survival depend upon passing their business and its assets down to their children. The sector is part of the significant backbone of the forest products industry consisting of dangerous work that takes a lot of capital to afford the equipment. The main resource is the family's next generation of children who they hope will want to take over the business and keep it in the future. This sector definitely needs the ability to pass on their business assets to the next generation if Virginia (and America) is to have future forest harvesters. We are not sure why this idea is being suggested at this time. The bill may improve the lives of some but hurt those who work everyday to produce essential products for our society. The bill would discourage our youth from continuing the proud heritage of their parents who have worked far too hard and long to be taxed out of business. Their youth need the unimpeded ability to receive the assets of their family business to carry on this important and necessary work. Like farmers who produce food for us, our forest harvesters harvest and transport fiber products used by us everyday. We ask that you reconsider and not move this bill forward. Thank you.

Madam Chair, and members of the committee I would like to share the support of the Virginia Restaurant, Lodging & Travel Association for HB2158. Currently Online Travel Agencies like Expedia, Orbitz, Travelocity, and others remit occupancy taxes based only on the portion of the sales price that the OTAs pay back to hotels, and not on the full amount paid by hotel guests when purchasing the room. Hotels, however, apply the occupancy tax rate and sales tax rate to the full price paid by consumers. As a result, hotels, which are locally owned, are taxed at a higher rate than the OTAs for the same type of room, sold for the same amount, on the same day--identical transactions. This creates an uneven playing field. This means that Virginia and localities are losing out on much needed tax revenue. Additionally, Destination Marketing Organizations throughout Virginia rely heavily on lodging taxes to operate and continue to market their destination to visitors. Unfortunately, the OTA loophole hinders Virginia and it's localities ability to market itself to tourists. For these reasons, VRLTA is strongly in favor HB2158 and closing the OTA loophole.

The Commonwealth Institute for Fiscal Analysis supports HB 2158 to update Virginia’s retail sales and transient occupancy taxes (TOTs) with respect to online travel intermediaries. As these companies have proliferated, Virginia’s sales tax and TOT have fallen out of step with the modern economy. The proposed update would modernize the tax code and restore equal taxation based on consumer-facing prices for hotels and other accommodations.

Good morning Mr. Chairman and members of the Committee. I am Rick Oertel and today I am primarily representing The American Legion Department of Virginia. HB2337 grants a tax subtraction of their retirement pay to the poorest of military retirees who became 100% and permanently disabled as a result of their service to this country in uniform. Most of these retirees served for 20 or more years and now are living at the poverty level. This bill has a history going back until at least 2016 and has been a Joint Leadership Council priority since 2018 (2018-04, 2019-02, 2020-03) and this year is our number 1 priority. Last year an identical bill patroned by Delegate Helmer sailed through House committees and passed unanimously but failed to clear the Senate Finance and Appropriations Committee. That Committee did however recognize the merits of this bill and its companion bill patroned by Senator Reeves as they were continued to 2021 for further study by a special subcommittee to look at and prioritize military and veteran tax policy bills. Mr. Chairman, as the representative of The American Legion Department of Virginia and as a member of the DAV, VFW, and MOAA I ask along with the other members of the Joint Leadership Council of Veterans Service Organizations that you report Del Wiley’s bill. Thank you.

HB2337 - I represent the Fleet Reserve Association to the Joint Leadership Council which consist of 25 Veteran Service Organizations representing over 250,00 Veterans in the Commonwealth of Virginia. OBJECTIVE: To allow individual income tax subtraction for the amount of annual retirement compensation received for service as a member of the U.S. Armed Forces, or the Virginia National Guard, for 100% service-connected disabled veterans with a federal adjusted gross income not exceeding 150% of the federal poverty level for a four-person household. BACKGROUND:  Virginia currently allows qualifying taxpayers to claim a subtraction for up to $20,000 of disability income;  As of September 30 2019, there were 3,200 retired service members (Regular & Reserve) in Virginia receiving taxable disability (Concurrent Retirement and Disability Payments, or CRDP) in the average amount of $21,296;  As of September 30, 2019, there were 1,712 retired service members (Regular & Reserve) in Virginia receiving non-taxable disability (Combat-Related Special Compensation, or CRSC) in the average amount of $9,470;  As of September 30, 2019, there were a total of 150,146 Department of Defense (DoD) military retirees in Virginia with average annual compensation of $37,163;  In 2018, 12.88% of all disabled veterans in Virginia were rated at 100%;  The federal poverty level for a four-person household for 2020 is $26,200;  Median household income in Virginia for 2018 was $72,577;  9.3% of households in Virginia were below the poverty level in 2018-2019;  All neighboring states exempt some or all military retirement from taxation. DISCUSSION:  While CRSC is not subject to federal or Virginia taxation, CRDP is generally subject to both federal and Virginia taxation;  Available reports do not provide specific data how many of the 4,912 retired service members receiving disability that are 100% service-connected disabled and below the poverty level, but the number is expected to be a small;  Department of Taxation considers implementation of this bill as routine and does not require additional funding;  No subtraction would be permitted if another Virginia subtraction or deduction for such service has been claimed. RECOMMENDATION: That the Governor and General Assembly approve an individual income tax subtraction for 100% service-connected disabled veterans with a federal adjusted gross income, not exceeding 150% of the federal poverty level for a four-person household, who have not already claimed another exemption.

With over 150,000 retiree service members in the Commonwealth, it would be fiscally prudent to retain and encourage them to remain as Virginia residents. All neighboring states exempt some or all military retirement from taxation. This legislation is an effort to supplement those veterans who are service-connected 100% disabled and still below the poverty level. Though the numbers of affected veterans may be small, the message that Virginia values all veterans is significant. JLC supports this Bill.

VACo has historically supported looking to the state income tax as a mechanism to provide assistance to veterans with disabilities in an equitable way, since such tax relief would assist veterans who are not property owners as well as those veterans who do own real or personal property, and the revenue impact would be spread among all Virginia income taxpayers. We would encourage consideration of this approach rather than further expansions of property tax exemptions.

The American Legion Department of Virginia fully supports this bill which exempts military retirement pay of impoverished veterans who became 100% permently disabled as a result of their service from taxation. We believe the fiscal impact computed for this bill is high as our estimate show less that 650 veterans in Virginia who would potentially qualify without even applying the 150% policy level. Given that many of these veterans are over 65 and are collecting social security (which is taxable) it is likely that even fewer would meet the poverty level stipulated in this bill. This bill was passed unanimously by the House last year (Del Helmer - HB1619) and was continued to 2021 by the Senate Finance and Appropriations Committee along with the companion bill in the Senate (Sen Reeves - SB 456).

As a representative of the Fleet Reserve Association to the Joint Leadership Council, that consists of 25 Veteran Service Organizations representing 250,000 Veterans in the Commonwealth of Virginia, we support this bill. OBJECTIVE: To allow individual income tax subtraction for the amount of annual retirement compensation received for service as a member of the U.S. Armed Forces, or the Virginia National Guard, for 100% service-connected disabled veterans with a federal adjusted gross income not exceeding 150% of the federal poverty level for a four-person household. BACKGROUND:  Virginia currently allows qualifying taxpayers to claim a subtraction for up to $20,000 of disability income;  As of September 30 2019, there were 3,200 retired service members (Regular & Reserve) in Virginia receiving taxable disability (Concurrent Retirement and Disability Payments, or CRDP) in the average amount of $21,296;  As of September 30, 2019, there were 1,712 retired service members (Regular & Reserve) in Virginia receiving non-taxable disability (Combat-Related Special Compensation, or CRSC) in the average amount of $9,470;  As of September 30, 2019, there were a total of 150,146 Department of Defense (DoD) military retirees in Virginia with average annual compensation of $37,163;  In 2018, 12.88% of all disabled veterans in Virginia were rated at 100%;  The federal poverty level for a four-person household for 2020 is $26,200;  Median household income in Virginia for 2018 was $72,577;  9.3% of households in Virginia were below the poverty level in 2018-2019;  All neighboring states exempt some or all military retirement from taxation. DISCUSSION:  Available reports do not provide specific data how many of the 4,912 retired service members receiving disability that are 100% service-connected disabled and below the poverty level, but the number is expected to be a small;  Department of Taxation considers implementation of this bill as routine and does not require additional funding;  No subtraction would be permitted if another Virginia subtraction or deduction for such service has been claimed