Sen. Chuck Colgan (D-29) has proposed SB582, which will roll Virginia’s income tax conformity date forward from 12/31/06 to 12/31/07. As I mentioned earlier, I would like to see this bill taken up as soon as possible. (Of course, what I’d really like to see is a bill that simply makes Virginia tax law conform to federal law. Then we wouldn’t need these bills every year.)
UPDATE: I missed the house version of this bill. HB912 was introduced by Bob Purkey (R-82). The bill reported out of House Finance on 1/14 and has already been thru its second reading on the House floor.
I do not understand why you would want to permanently link a Virginia right for governement as guaranteed by the US Consitituion to Federal program (IRS). Can you please explain how it helps the Commonwealth by giving up some of our state’s rights to the fed gov’t?
Thanks for your blog!
Posted by AvocationAviator | Tuesday, January 15, 2008, 9:40 amGiving up rights? Hardly. All of the states with an income tax have some level of conformity with Federal tax law. Virginia used to automatically conform until a few years ago, when they decided not to. Then they started this series of annual bills that sets the conformity date. The problem (if you read my earlier comment) is that they always roll the date forward to match but they do so late, which costs Virginia taxpayers money, either because they fail to file amended returns or because they have to pay to have amended returns prepared.
By the way – the IRS doesn’t write the laws. Congress does. So there is not a link to a federal program, as you put it.
Posted by vjp | Tuesday, January 15, 2008, 11:02 am