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Panel tables proposal to offer split-rate tax option to every Virginia locality

Virginia House Finance Subcommittee 2 · January 21, 2026
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Summary

Delegate McNamara’s HB10, which would let every Virginia locality choose whether to classify land or improvements at different tax rates, was debated and then laid on the table by the subcommittee amid equity and scope concerns (tabled 10–0).

Delegate McNamara urged the subcommittee to consider HB10 as a statewide option that would allow any locality to adopt a split-rate system—either a lower rate on improvements or a lower rate on land—rather than creating piecemeal carve-outs for individual cities.

McNamara argued the approach provides local flexibility and avoids special legislation that treats some cities differently. Several members, including Chair Watts, expressed concern about applying the change broadly across cities, suburbs and rural localities, warning the reform could produce unintended tax-policy outcomes if extended beyond core urban areas. Committee members pressed for examples from other states and asked for fiscal-impact analysis.

After extended questioning and debate over scope and equity guardrails, Delegate Delia Keys Gamara moved to lay HB10 on the table; the motion carried by recorded vote (10 yays, 0 nays). The subcommittee’s action effectively pauses the measure at this stage.