Message from Glen
The General Assembly approved legislation providing nearly $1 billion in tax relief to Virginia families this week, and today, this important legislation was signed by the Governor. In this package, we are increasing the standard deduction by 50%, providing rebate checks to Virginia taxpayers this year, and largely conforming the Virginia tax code to the federal tax code.
Our plan directly benefits more than four million taxpayers by providing tax rebates in the current year and lowering personal income tax burdens starting in 2020. This is especially helpful for working families who make less than $50,000 a year, who will receive 40% of all rebate checks. Those making $100,000 or less will receive 70% of the rebates.
Providing direct tax relief to hardworking Virginians and reversing the unlegislated tax increase was one of my top priorities this year. My bill to increase the standard deduction was part of this important tax cut equation and represents the first meaningful increase in the standard deduction in three decades. This is the second largest tax cut in Virginia history.
This important legislation passed the Senate on a broad bipartisan vote after initially passing the Senate with only a 21-19 party-line vote two weeks ago. These details have also been incorporated into both budget proposals in the Senate and House of Delegates.
With the Governor’s signature, Virginians can now file their state taxes and you can start actualizing the savings.
Key Provisions of House and Senate Tax Relief Plan
- Returns all $976 million from increased individual provisions of the federal Tax Cuts and Jobs Act (TCJA)
- Provides a tax refund in October 2019, $110 for individuals and $220 for couples
- Increases the standard deduction by 50% to $4,500/individual and $9,000/couple
- Maintains current state law on SALT, preventing a double tax hike on homeowners
- Includes subtraction modification for Global Intangible Low-taxed Income (GILTI)
- Includes deduction for 20% of net interest expenses
- Places $189 million in Taxpayer Relief Fund