Virginia House Bill HB165

Virginia 2024 Regular Session

• Introduced: 1/2/24
• Refer: 1/2/24

Caption

Income tax, state; deduction for union dues.

Impact

If enacted, HB 165 will change the landscape of Virginia's tax code by recognizing union dues explicitly as a qualifying deduction. This change may lead to a decrease in state tax revenues, although it is expected to provide significant financial benefits to union workers. Proponents believe this will help to foster greater union membership and engagement, effectively strengthening workers' rights and representation in the workplace.

Summary

House Bill 165 proposes a new tax deduction for individuals who pay union dues to labor organizations during the taxable year. This measure aims to enhance the fiscal responsibility and financial relief for union members by allowing them to deduct these expenses from their state taxable income. By implementing this deduction starting in the 2024 taxable year, the bill intends to support lower-income workers financially, acknowledging the role of unions in securing better wages and working conditions.

Contention

Critics of the bill express concern that it may disproportionately benefit high-earning union members while providing little relief to lower-income workers. Additionally, there may be contentions regarding the implementation of this tax deduction, particularly surrounding the definitions of what constitutes 'union dues' and how it may affect the resources of state tax departments in processing such deductions. Some lawmakers worry that this could lead to complications in tax filings and enforcement of the new regulations introduced by the bill.