Starting July 1, 2019, a number of new state and local tax laws go into effect in Virginia. These laws are part of state and local tax legislation enacted by the 2019 Virginia General Assembly.
Some of the changes include:
- Refunds for Certain Taxable Year 2018 Return Filers: Taxpayers who file their Virginia individual income taxes by midnight on July 1, 2019, could be eligible for a Tax Relief Refund of up to $110 for an individual filer ($220 for a married couple filing jointly.) The amount of your refund can’t exceed your 2018 tax liability. Refund checks will be mailed by Oct. 15, 2019.
- Remote Sales and Use Tax Collection: Starting July 1, 2019, remote sellers and marketplace facilitators who sell or facilitate sales to customers in Virginia and meet certain requirements must register with Virginia Tax for the collection of sales and use tax. The new requirements affect:
- Remote sellers that receive more than $100,000 in annual gross revenue from sales in the commonwealth or engage in at least 200 annual sales transactions in Virginia; and
- Marketplace facilitators that facilitate or conduct sales in the commonwealth totaling more than $100,000 in annual gross revenue or 200 or more sales transactions.
- If your business is already registered with us, there is additional information you need to know about. See Remote Sellers, Marketplace Facilitators, and Economic Nexus, specifically the sections focusing on in-state and out-of-state businesses.
- Historic Rehabilitation Tax Credit – Annual Limitation on Credits Claimed: The $5 million limit on Historic Rehabilitation credits that can be claimed in a single year is now permanent. Carry forward any unused credits for up to 10 years, or until the full amount of the credit is used, whichever comes first. See Housing and Community Development Tax Credits for more information.
- Local License Tax on Mobile Food Units (Food Trucks): If you own a new business that operates a mobile food unit or food truck and paid a license tax as required by the locality in which the mobile food unit is registered, you don’t have to pay a license tax in any other locality where the food truck operates. This exemption from paying the license tax in other localities expires 2 years after the initial license tax payment.
- Real Property Tax: Partial Exemption from Real Property Taxes for Flood Mitigation Efforts: A locality can grant a partial exemption from real property taxes for flooding mitigation efforts for improved real estate that is subject to recurrent flooding. Exemptions may only be given for qualifying flood improvements that don’t increase the size of any area resistant to flooding, and are made to qualifying structures or to land. Improvements made prior to July 1, 2018, aren’t eligible for exemption.
- Personal Property Tax Exemption for Agricultural Vehicles: If you own a vehicle that’s used “primarily” for agricultural purposes, you’re not required to obtain a registration certificate, license plate, or decal, or to pay a registration fee. Previously, this exemption applied only to motor vehicles used “exclusively” for agricultural purposes. Additionally, the classification of farm machinery and equipment that a local governing body may exempt includes equipment and machinery a nursery uses for the production of horticultural products, and any farm tractor, regardless of whether a farmer uses it exclusively for agricultural purposes.
For more information and a complete list of 2019 state and local tax legislation, view the 2019 Legislative Summary.