Virginia 2024 Regular Session

Virginia House Bill HB1262

Introduced
1/10/24  

Caption

Local sales tax entitlement; blighted retail district.

Impact

The bill proposes that once a locality adopts the necessary ordinances, a blighted retail district project shall be entitled to a portion of the local sales and use tax revenues. This revenue will specifically assist developers in obtaining 'gap financing' which is crucial for covering any shortfall in project funding, primarily involving capital investment of at least $15 million. The structured entitlement is intended to continue until the gap financing is fully repaid, with revenues being certified quarterly and remitted to the appropriate economic development authority.

Summary

House Bill 1262 focuses on the establishment of a local sales tax entitlement for blighted retail districts in Virginia. The bill identifies a 'blighted retail district' as a property consisting of at least 20 contiguous acres and in a blighted or undeveloped condition for over ten years. To be designated as such, the district must comply with specific zoning for commercial retail purposes and must be approved by an eligible county, specifically Stafford County in this case. This designation underpins eligibility for financial assistance through sales tax revenues generated within the district.

Contention

Supporters of HB1262 argue that the bill will stimulate economic growth within neglected areas by incentivizing investment and redevelopment. However, there may be concerns regarding dependency on tax revenues as the sole means of revitalization. Critics could argue that such incentives might unfairly prioritize certain developments over others, potentially leading to inequitable distribution of resources and limiting the available tax revenue for other urgent community needs.

Further_details

Additionally, the bill requires that developers secure at least 70% of funding through debt or equity before they can access the tax entitlements. Agreements must also be in place between the developer and the economic development authority, which ensures a level of oversight in how such funds are utilized. These provisions are aimed at fostering responsible financial practices while encouraging redevelopment in areas that have been historically overlooked.

Companion Bills

No companion bills found.

Previously Filed As

VA HB2316

Sales and use tax, local; additional tax authorized in all counties & cities to support schools.

VA SB1408

Sales and use tax, local; additional tax authorized in all counties & cities to support schools.

VA SB1287

Sales and use tax, additional local; taxes to support schools.

VA SB1258

Sales tax revenues; entertainment arena.

VA HB2442

Sales tax; additional local tax for schools in City of Newport News.

VA HB1741

Sales tax revenues; entertainment arena, adds entertainment arena to definition of public facility.

VA HB2196

Sales and use tax, local; exemption for essential personal hygiene products and infant formula.

VA HB1605

Local sales and use tax; construction or renovation of schools, Prince Edward County.

VA SB1294

Retail Sales and Use Tax; removes June 30, 2035, sunset on local exemption for data centers.

VA SB956

Localities; authorized to create business improvement and recruitment districts.

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