Virginia House Bill HB1507

Virginia 2024 Regular Session

• Introduced: 1/19/24
• Refer: 1/19/24

Caption

Taxes; penalties and interest associated with the filing of returns or payment.

Impact

The legislation's impact on state laws lies mainly in its provision for local governments to freely amend tax penalty structures without needing state approval. This autonomy could lead to significant variations in how taxes are administered across different localities, allowing for tailored approaches that could better reflect the needs and capacities of their respective communities. It may benefit taxpayers by preventing punitive measures due to late payments that do not arise from taxpayer fault, thereby reducing wrongful penalties on individuals and families.

Summary

House Bill 1507 addresses the regulation of tax penalties and interests imposed on taxpayers in Virginia. The bill proposes amendments to the Code of Virginia that would empower local governing bodies to establish due dates for filing tax returns and setting corresponding penalties. Notably, it provides flexibility for localities in determining tax due dates and allows for more individualized payment schemes, thereby offering significant local control over taxation practices. This is particularly relevant for tangible personal property and machinery and tools, as well as other local taxes.

Contention

A notable point of contention surrounds the authority granted to local governments, as critics might argue that it could lead to inconsistencies and confusion among taxpayers. There may be concerns about the potential for localities to impose excessive penalties or interest rates that could harm the financial well-being of residents. Additionally, the bill includes provisions that affect military personnel by granting them automatic extensions for tax payments while on active duty, which could be seen as a positive measure by veterans’ groups but might raise discussions about fairness in taxation between service members and civilian taxpayers.