VA tax conformity date rolled to 12/31/07

Local, Politics, Virginia 1 Minute

HB12 was signed by Governor Tim Kaine Monday. This bill, which I mentioned earlier, rolls the VA income tax conformity date forward to 12/31/07. In a press release announcing the signing, Kaine touted the benefits of incorporating federal tax law changes made in the last year into the Virginia code:

“These measures will protect families of the Virginia Tech shooting victims and will create tax breaks for small businesses and many homeowners,” Governor Kaine said. “The bill provides tax relief for people who deserve it and need it.”

Three specific changes were cited by Kaine:

  • House Resolution 4118 created an exemption for money received from Virginia TechUniversity out of amounts transferred from the Hokie Spirit Memorial Fund.
  • The Small Business and Work Opportunity Tax Act of 2007 provided several tax breaks for small businesses.
  • The Tax Mortgage Forgiveness Debt Relief Act of 2007 created an exception to current law so that certain homeowners do not have to pay taxes for debt forgiveness on their troubled home loans. The bill also extended a provision allowing homeowners to deduct mortgage insurance payments from their taxable income and provided other forms of tax relief.

Without this bill, the above items would not have been allowed on Virginia returns, costing Virginia taxpayers quite a bit of money. This is the earliest that I recall the conformity date bill being passed. Kudos to the GA for getting this done so quickly.

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8 thoughts on “VA tax conformity date rolled to 12/31/07”

  1. I do find it amusing, Vivian, that tax cuts you support save Virginia taxpayers money, but those you oppose cost the state money.

  5. HR 4118 exempts income from taxation, which means they will be paying less in taxes than they would otherwise. Thus, it is a tax cut.

    The other two are called “The Tax Mortgage Forgiveness Debt Relief Act of 2007” and “The Small Business and Work Opportunity Tax Act of 2007.” If they are tax bills, and they save the taxpayers money, they are tax cuts.

    You yourself said the latter “provided several tax breaks for small businesses.”

    Is there a difference between a tax break and a tax cut?

  6. It was a statement of fact, Mouse, not an opinion on whether these things are good or bad. Did you miss the context? Did you not read the previous links? And I specifically said that those facts came from the governor’s press release. Did you miss that, too? Here is the press release.

    The purpose of this post was to let folks know that the conformity date had been rolled forward, which means they don’t have to spend the money having amended returns prepared. Try a little reading comprehension, Mouse.

  7. I know it was a statement of fact. I just find it amusing that when you like a tax cut, as in this example, you say it saves taxpayers money. For those you do not like, you say it costs the government money. Two sides of the same coin, as it were. Both are factually correct.

    As for the press release, you neither linked to it, nor did you put the points in quotes. Therefore, I assumed that you were paraphrasing. Perhaps you could fix the post so that the points are included in the blockquote.

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