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Subcommittee 3 carries multiple tax and conformity bills to 2027 after testimony and amendments

Subcommittee 3, Virginia Legislature · February 10, 2026
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Summary

After extended testimony and amendment work, Subcommittee 3 voted to carry over a set of major tax and revenue bills — including HB 979, HB 978, HB 703, HB 1074, HB 12, HB 13 and HB 900 — to 2027; the committee adopted amendments on several measures and recorded motions to continue.

Subcommittee 3 concluded a long hearing by carrying several high-profile tax and revenue bills over to the 2027 session for further drafting and fiscal analysis. The measures carried over included Delegate Watts' HB 979 (comprehensive tax package), HB 978 (sales and services tax modernization), HB 703 (elimination of the remaining 1% local grocery sales tax), Delegate Hernandez's HB 1074 (alternate tax package), HB 12 and HB 13 (standard-deduction extensions/conformity), and HB 900 (statewide transit and transportation funding bill).

Where the record shows formal committee action: the committee adopted a "substitute as amended" for HB 979 (restoring specific current-law language and adding a delayed effective date), adopted clarifying amendments to HB 978 (including professional-exemption clarifications), and voted by voice to continue or carry several bills to 2027. For HB 703, local-government representatives (Virginia Association of Counties, VML) and county officials warned that removing the local 1% grocery tax equates to roughly $300 million a year in local revenue and raised long-term hold-harmless concerns; the committee nonetheless moved to continue the bill to 2027.

Several bills were tabled, reconsidered or carried after brief debate and motions recorded on the floor. Committee chairs and sponsors said additional amendments and fiscal reconciliation with the tax department and Legislative Services are expected before the bills return to committee.

Procedural outcomes (at-a-glance): - HB 979: Substitute as amended adopted; carried to 2027. - HB 978: Amendments adopted; carried to 2027. - HB 703: Continued to 2027 after testimony and discussion of hold-harmless mechanics. - HB 1074: Carried to 2027 after supportive testimony from advocacy groups. - HB 12/HB 13: HB 13 carried over; HB 12 was laid on the table pending coordination with appropriations and later recorded as carried/tabled as noted in the transcript. - HB 900: Sponsor presented statewide transit/funding approach; bill carried to 2027 for further work.

The subcommittee adjourned after recording these motions; sponsors and staff will continue negotiations and fiscal analysis before the bills are next scheduled.