Taxes and Budget Digest 2006-2009

HB2414: Individual income tax; subtraction for Virginia Military Family Relief
Fund. Provides a subtraction when calculating Virginia taxable income for individuals
who receive benefits under the Virginia Military Family Relief Fund.

HJ648: Constitutional amendment (first resolution); property tax exemption for

certain veterans. Directs the General Assembly to exempt from taxation real property
that is the principal residence of a veteran (or widow or widower of a veteran) if the
veteran has been determined by the United States Department of Veterans Affairs or its
successor agency pursuant to federal law to have a 100 percent service-connected,
permanent, and total disability.

HB239: Classification of real property; energy-efficient buildings. Expands energy-

efficient buildings that may be classified as a separate class of real property for tax
purposes to include buildings that meet performance guidelines or standards under the
Green Globes Building Rating System of the Green Building Initiative, Leadership in
Energy and Environmental Design (LEED) Green Building Rating System, EarthCraft
House program, or Energy Star program.

HB1229: Sales and use tax; energy and water conservation products tax holiday.
Adds water-efficient products to the products sales tax holiday held during a four-day
period in the month of October.

HB1326: Sales and use tax exemption; school textbooks. Extends the current sales and
use tax exemption on sales of school textbooks to student attending nonprofit colleges
and other institutions of learning to students attending for-profit colleges and institutions
of learning.

HB1721: Income tax; home accessibility features for the disabled tax credit.
Broadens the current tax credit that is granted for adding to existing residences home
accessibility features for the disabled to also include such features in new residential
construction, for taxable years beginning on or after January 1, 2007.

HB2608: Income tax; deduction for licensed medical caregivers. Grants an income
tax deduction, for taxable years beginning on or after January 1, 2008, in the amount of
$10,000 for licensed medical caregivers who provide medical-related services to
individuals in their homes. The deduction is reduced $1 for every $2 the taxpayer's
federal adjusted gross income exceeds $40,000.

HB2609: Income tax; in-home health care tax credit. Provides an income tax credit
for every individual taxpayer who pays medical and in-home care expenses for family
members living with the taxpayer, for taxable years beginning on or after January 1,
2008. The amount of the credit is equal to the amount paid for such expenses and that is
not reimbursed. The credit will be reduced $1 for every $2 that the taxpayer's federal
 Taxes and Budget Digest 2006-2009

adjusted gross income exceeds $50,000 for single taxpayers and $75,000 for married
taxpayers.

HB2920: Abusive income tax avoidance transactions; statute of limitations. Extends

from three years to six years the period in which the Department of Taxation may assess
income tax for any tax return filed based in whole or in part on an abusive tax avoidance
transaction. An "abusive tax avoidance transaction" means a transaction that has been
identified by the Tax Commissioner as such a transaction and that has been published by
the Tax Commissioner.

HB2988: Individual income tax; filing threshold amounts. Increases the filing
thresholds for the state income tax from $7,000 to $12,000 for individuals and from
$14,000 to $24,000 for couples for taxable years beginning on and after January 1, 2008.

HB450: Income tax; land preservation tax credits. Removes the $100,000 annual
credit limit that a taxpayer may take for qualified donations of conservation easements
and requires the filing of a statement for less-than-fee interest donations that describes
how such interest meets the requirements of IRC § 170(h). It also adds as qualified
donations easements on historic buildings or a complex of historic buildings or a portion
of such buildings if the building is listed on the Virginia Landmarks Register, provided
there are restrictions on the exterior surfaces of the building or complex of buildings. A
fee of 1% of the value of the donated interest, or $5,000, whichever is less, is imposed on
any taxpayer who transfers unused tax credits. It also allows the tax credits to pass at the
death of the taxpayer to his estate and allows the estate to transfer unused tax credits.

HB976: Motor vehicle sales and use tax; exemptions. Includes registration certificates
issued by the United States Armed Forces as valid documents that can be used by
military personnel who have owned a vehicle for more than 12 months or paid sales tax
to another state on such vehicle to obtain an exemption from the motor vehicle sales and
use tax. The bill would also exempt from the motor vehicle sales and use tax motor
vehicle sales to local government group self-insurance pools.

HB1553: Individual income tax; senior citizen tax relief. Provides for indexing the
$12,000 and $6,000 age deduction amounts based on the Consumer Price Index for All
Urban Consumers, for taxable years beginning on or after January 1, 2007.