Virginia House Bill HB1137

Virginia 2024 Regular Session

• Introduced: 1/10/24
• Refer: 1/10/24

Caption

Income tax, state; disability income.

Impact

The passage of HB1137 could significantly affect individuals who receive disability income, allowing them to retain a larger portion of their earnings by reducing their taxable income. This change is expected to provide much-needed relief to families and individuals who may face economic challenges due to their disability status. The bill is anticipated to impact state revenue, as it introduces deductions that may result in reduced tax collections from this demographic. Overall, it promotes equity within the tax system by acknowledging the need for support featuring disability considerations.

Summary

House Bill 1137 proposes amendments to the Virginia Code related to income taxation, particularly concerning disability income. The bill aims to allow individuals to subtract certain amounts of disability income from their Virginia taxable income, thereby offering adjustments to their tax obligations. This aligns with the broader trend of providing financial relief to individuals with disabilities, acknowledging the unique challenges they face in managing expenses. The proposed provisions reflect a shift towards more inclusive tax policies that aim to alleviate the financial burdens of vulnerable populations within the state.

Contention

Discussion surrounding HB1137 has involved debate over its long-term fiscal implications for the state's budget. While proponents advocate for the essential financial relief for disabled individuals, opponents have raised concerns about the potential loss in state revenue and the fairness of expanding benefits. Some critics fear that adjustments to tax policy may lead to complications and conflicts with existing tax structures or appropriations, necessitating a careful examination of revenue sources to offset any potential deficits created by the bill's provisions. These points of contention are likely to influence public and legislative support for the bill as it moves through the legislative process.