Thursday Budget Update

The four bill budget package (SB 150, SB 152, SB 523 and SB 848) passed the Senate this morning, with several provisions impacting employers. Individual income tax brackets will see a .25% increase for most taxpayers, and a flat tax on all income of 5.75% for individuals reporting incomes above $500,000.

The raid of employers’ funds in IWIF will initially be $50 million, but could grow to twice that amount after a study performed later this year. We thank Sen. Allan Kittleman (R-Dist. 9) for a spirited floor debate attacking the raid, and offering three amendments that would have protected employers’ money in IWIF. Unfortunately the amendments were rejected on votes of 13-33, 10-36, and 10-33. 

The Senate action also imposes sales tax collection responsibility on certain out of state vendors with in-state affiliates, and expands the county recordation tax to indemnity mortgage deeds of trust (IDOTs). See a recap of Senate budget action.

The attention now turns to action by the House Appropriations and Ways & Means Committees on these tax and budget issues, which should occur by Friday afternoon. We urge you to contact your members of the House of Delegates to tell them to stop the raid on IWIF funds. For further information contact Ron Wineholt at .(JavaScript must be enabled to view this email address).

About Ronald W. Wineholt