House Finance Committee reports multiple tax and sunset measures; votes at a glance

The House Finance Committee convened and processed a series of tax and sunset-related bills, recording incorporations, substitutes and final committee votes on a number of measures.

The committee chair, Chair Watts, opened the session and confirmed a quorum. Members approved multiple incorporations of individual bills into omnibus or related bills and then heard two subcommittee reports and the committee’s votes on more than a dozen bills.

Why it matters: The committee’s actions advance a package of tax- and administration-related legislation — including changes to sunset dates, tax-exemption definitions and tax-collection rules — to later consideration or to appropriations, shaping which measures will move forward for full House consideration.

Key actions and context

- Incorporations and administrative moves: The committee approved motions to incorporate HB 1581 (Ballard) into HB 2595 to expand the firearm safety device tax credit to purchases from specified commercial retailers; HB 2248 (Runyon) was incorporated into HB 1729 (aircraft components sales tax exemption); and HB 2667 (Taylor) was incorporated into HB 2549 (currently not collectible status). Those incorporations were taken by voice vote.

- Subcommittee 1: Delegate Munden King reported that subcommittee 1 recommended reporting HB 1868 (technical correction) and HB 1896 (real property tax classification for a single-member LLC) unanimously out of subcommittee; the committee approved the uncontested block (HB 1868 as amended and HB 1896) by a roll-call vote of 21 to 0.

- Individual bills advanced from subcommittee 1 included: • HB 1579 (Morphil) — extends a sunset for local gas road improvement and Virginia Coalfield Economic Development Authority provisions from Jan. 1, 2026, to Jan. 1, 2028; reported by the committee 19 to 2. • HB 1792 (Orratt) — raises the property-assessment threshold at which a local officer may sell real property for unpaid taxes; reported 20 to 0. • HB 1939 (Reid) — creates a separate tangible personal property classification for electric-powered landscaping equipment; reported 12 to 9. • HB 2029 (patron Delegate Hernandez) — the committee adopted a substitute that incorporates subcommittee amendments and an additional amendment referencing Code section 58.1-3994 (offers in compromise); the substitute was reported 15 to 5. During the discussion, Delegate Hernandez explained that the amendment adds a reference to the code section addressing offers in compromise, and said the Treasurers Association, VML and Bay Co support the bill. • HB 2239 (Cousins) — extends a sunset date related to certain bond-authority provisions for Richmond from July 2024 to July 2028; reported 12 to 8. • HB 2383 (patron) — provides that an accommodations provider is not required to transmit a transient occupancy tax return to a locality (a compromise intended to provide transparency while addressing a longstanding issue); reported 18 to 2.

- Subcommittee 2 and related blocks: Subcommittee 2 reported a block of uncontested substitutes (reported 21 to 0) that included HB 1572 (data collection on certain cigar sales), HB 2595 (firearm safety device tax credit as substituted), HB 2643 (increase of the maximum underpayment threshold for estimated tax from $150 to $1,000), and HB 2653 (adds a sunset for the qualified equity and subordinated debt investments tax credit). HB 1729 (aircraft parts sales tax exemption) was removed from that block for separate consideration and later reported in a procedural vote the chair described as part of omnibus sunset-extension work (the chair indicated he believed the vote was 14 to 7 and described the vote as procedural rather than on merits).

- Additional bills from subcommittee 2 considered one at a time included: • HB 1701 (Boulevard) — extends a housing-related sunset reserved for rural areas; reported and re-referred to Appropriations 18 to 1. • HB 1997 (McNamara) — removes the sunset on the elective entity tax option for pass-through entities; reported out of subcommittee 6 to 2. The committee vote total as announced in the transcript is not specified clearly in the record available here. • HB 2114 (Kees Gamar) — removes a suspension of the period of limitations during an installment agreement between a taxpayer and the tax commissioner; reported 12 to 9. • HB 2264 (Tran) — reestablishes the Virginia Direct File program; reported with amendments and re-referred to Appropriations 12 to 9. • HB 2549 (Clark) — creates a "currently not collectible" status allowing taxpayers to apply to the tax commissioner for that status and aligns collection practice language with federal practice and other states for individuals; the committee adopted a substitute (and a technical amendment adding a delayed effective date) and reported the substitute as amended by a roll-call vote of 12 to 9. Committee discussion included staff clarification that the collection-code structure addressed by the substitute applies to individuals.

Votes at a glance (bill — short description — committee outcome) HB 1581 (Ballard) — incorporate into HB 2595 (firearm safety device tax credit expansion to commercial retailers) — incorporated by voice vote into HB 2595. HB 2248 (Runyon) — incorporate into HB 1729 (sales tax exemption for aircraft parts) — incorporated by voice vote into HB 1729. HB 2667 (Taylor) — incorporate into HB 2549 (create currently not collectible status) — incorporated by voice vote into HB 2549. Block: HB 1868 (technical correction) and HB 1896 (single-member LLC real property tax classification) — reported and passed as a block 21 to 0. HB 1579 (Morphil) — extend sunset for local gas road improvement/Coalfield authority — reported 19 to 2. HB 1792 (Orratt) — raise assessment threshold for tax-sale authority — passed 20 to 0. HB 1939 (Reid) — classification for electric landscaping equipment — reported 12 to 9. HB 2029 (Hernandez) — substitute added referencing Code §58.1-3994 (offers in compromise); Treasurers Association, VML and Bay Co support — substitute reported 15 to 5. HB 2239 (Cousins) — extend certain bond-authority sunset for Richmond — reported 12 to 8. HB 2383 (patron) — transient occupancy tax return transmission requirement compromise — reported 18 to 2. Block reported 21 to 0: HB 1572 (cigar sales data collection); HB 2595 (firearm safety device tax credit — as substituted, including HB 1581 incorporation); HB 2643 (increase underpayment threshold to $1,000); HB 2653 (sunset for qualified equity and subordinated debt investments tax credit). HB 1729 (Delaney) — sales and use tax exemption for aircraft parts (removed from block for separate vote) — reported in a procedural vote described by the chair (chair indicated he believed the vote was 14 to 7); chair described it as a procedural vote tied to omnibus sunset review. HB 1701 (Boulevard) — extend rural housing-related sunset — reported and re-referred to Appropriations 18 to 1. HB 1997 (McNamara) — remove sunset on elective entity tax option — committee subcommittee recommendation 6 to 2; committee vote total in transcript not specified clearly. HB 2114 (Kees Gamar) — adjust suspension of limitations during installment agreements — reported 12 to 9. HB 2264 (Tran) — reestablish Virginia Direct File; reported with amendments and re-referred to Appropriations 12 to 9. HB 2549 (Clark) — create "currently not collectible" status for individuals; substitute and technical amendment adopted; reported with substitute as amended 12 to 9.

What the committee did not decide here: Several measures were reported out of committee and will proceed to the next steps in the legislative process; where the chair or members characterized a vote as "procedural," the transcript records that merits will be addressed later (for example, HB 1729).

Meeting close: With no other business, the chair thanked the subcommittees and adjourned the committee.

Ending note: The transcript records motions, roll-call tallies and several substitutions or technical amendments adopted on the floor; when a roll-call tally in the audio record was not clearly enunciated in the transcript, the committee’s announced totals are reported here as recorded in the meeting transcript (some counts were stated by the chair as his recollection).