Summary: Income tax; pass-through entities. Makeschanges to the elective entity level tax on pass-through entities.The bill would impose the tax only on the share of income, gain,loss, or deduction attributable to eligible owners, as opposed toimposing the tax on the entire entity. "Eligible owner" is definedin the bill as an owner of a pass-through entity that is a naturalperson or a person eligible to be a shareholder in an S corporation. The bill also strikes the requirement that to qualify for the taxa pass-through entity must be 100 percent owned by natural personsor persons eligible to be shareholders in an S corporation.

Summary: Tax credit for participating landlords.Increases from $250,000 to $1 million the maximum amount of tax creditsthat may be issued to participating landlords, as defined in relevantlaw, each fiscal year beginning with fiscal year 2024 and providesthat, in the event that the amount of the qualified requests fortax credits for such participating landlords in the fiscal year exceeds$1 million, the Department of Housing and Community Development willprorate the tax credits among the qualified applicants.

Summary: Data centers and cloud computing; sales taxexemption; grant fund. Creates the Cloud Computing Cluster InfrastructureGrant Fund for the purpose of providing grants to qualified companies,defined in the bill as a company, including its affiliates, thatenters into a memorandum of understanding with the Virginia EconomicDevelopment Partnership Authority and is expected to (i) make orcause to be made a capital investment of at least $50 billion and(ii) create at least 1,500 new full-time jobs that pay an averageannual wage of at least $122,300. The bill requires that, in orderto become a qualified company, a company successfully complete aqualification process that includes an endorsement from the MEI Commission and approval in the appropriation act for the amount ofgrants that are to be provided. Thebill also extends the data center sales and use tax exemption to2040 for a data center operator that (i) makes a capital investmentof at least $35 billion in data centers in the Commonwealth and (ii)creates at least 1,000 direct new jobs with an average wage of atleast $122,300. Such data center operator shall be eligible for furtherextension to 2050 if the data center operator (i) makes a total capitalinvestment of at least $100 billion, inclusive of the initial $35billion investment, and (ii) creates a total of at least 2,500 directnew jobs with an average wage of at least $122,300, inclusive ofthe 1,000 jobs initially created.

Summary: Oyster shell recycling tax credit. Createsa nonrefundable tax credit for taxable years 2023 through 2027 fora taxpayer engaged in the donation of oyster shells for use in oysterrestoration projects. The bill specifies that, in order to qualifyfor the credit, a taxpayer must donate the oyster shells to eitherthe Virginia Marine Resources Commission or a nonprofit entity engagedin oyster restoration activities. A taxpayer who qualifies for thecredit created by the bill will be allowed a credit of $4.00 perbushel of oyster shells, not to exceed $1,500 per taxpayer in a taxableyear and subject to an aggregate annual cap of $250,000.

Summary: Livable home tax credit. Increases from$1 million to $2 million, beginning in fiscal year 2024, the aggregatecap of tax credits allowed by the livable home tax credit in a fiscalyear. The bill increases from $500,000 to $1 million, beginning infiscal year 2024, the amount of credits allocated by the Departmentof Housing and Community Development to each of (i) the purchase or construction of new residences and (ii) the retrofitting and renovationof existing residences. The bill also increases from $5,000 to $6,500,beginning in taxable year 2023, the maximum amount of livable hometax credits an individual may claim in a taxable year.

Summary: Sales tax; exemption for food purchased forhuman consumption and essential personal hygiene products. Providesan exemption from local sales and use tax beginning July 1, 2023,for food purchased for human consumption and essential personal hygieneproducts. The bill also provides an allocation of state revenuesto fund the distribution to localities for funding that would havebeen distributed to them absent the exemption created by the bill.Under current law, such products are exempt from state sales and usetax but are subject to the standard local rate of one percent.

Summary: Personal property tax; farm machinery and farmimplements. Expands the list of certain farm machinery and farmimplements that a locality may exempt from personal property taxes to include (i) motor vehicles used primarily for agricultural purposes,(ii) privately owned trailers primarily used by farmers in theirfarming operations, and (iii) season-extending vegetable hoop housesused for in-field production of produce. The bill states that a localitythat exempts motor vehicles or privately owned trailers pursuantto these provisions shall not collect any unpaid tangible personalproperty taxes, including interest or penalties, that are owed tothe locality as of July 1, 2023.

Summary: Retail sales and use tax; service exemptions;diagnostic work for automotive repair and emergency roadside service.Exempts any amount charged for labor for diagnostic work for automotiverepair and emergency roadside service for motor vehicles from retailsales and use tax.

Summary: Real property tax; notice of rate and assessmentchanges. Requires certain information to be included in the noticethat a locality is required to send to taxpayers after conductinga reassessment of real property. The bill provides that when a localityhas not yet established its real property tax rate when such noticeis sent, the locality shall set out in the notice the "lowered taxrate," defined in the bill as the tax rate which would levy the sameamount of real estate tax as the previous year, when multiplied bythe new total assessed value of real estate.

Summary: Delinquent tax lands. Extends the maximumduration of an installment agreement between a locality and a landownerto pay delinquent taxes from 60 to 72 months. The bill also allowsfor a property owner, or his heirs, to redeem real estate sold fordelinquent taxes for a period of up to 365 days after such judicialsale. The bill provides that such redemption shall be made by payingto the purchaser the amount paid by the purchaser plus the amountof taxes, penalties, interest, and other charges due to a localityand incurred after the judicial sale and plus interest thereon atthe rate of six percent per year.

Summary: Litter tax; penalty for failure to timely pay.Reduces the penalty for failure to timely pay the litter tax to $10. Currently, the penalty is $100 plus an amount equal to the taxesdue, including all delinquent taxes, and the amount that the Departmentof Taxation expended in collecting such delinquent taxes.

Summary: Local business taxes; penalties. Caps themaximum amount of penalties that may be assessed on unpaid licensetaxes or tangible personal property taxes owed by a business at fivepercent of the amount due. The bill provides the same cap for penaltiesassessed for failing to apply for a license or file a return on timefor such taxes. The bill requires the assessing official, upon assessingany such penalty, to notify the affected taxpayer of the amount ofsuch penalty, any interest assessed, and the total amount of tax owed. The bill is a recommendation of the Small Business Commission.

Summary: Income tax; military benefits subtraction; agerestriction. Removes the age 55 or older restriction on thoseindividuals allowed a military benefits income tax subtraction beginningwith taxable year 2023.

Summary: Real property tax; exemption for disabled veteransand surviving spouses. Provides that a person who is eligiblefor the real property tax exemption for certain disabled veteransand surviving spouses is entitled to a refund, retroactive to hisdate of eligibility, of taxes paid during the period of exemption,excluding interest or penalties. Under the bill, the refund is exemptfrom the statute of limitations for applications for correction ofan assessment.

Summary: Local incentives for urban green space. Authorizes localities to establish programs to grant tax incentivesor provide regulatory flexibility to encourage the preservation, restoration, or development of urban green space, defined in thebill. The incentives or regulatory flexibility may include (i) areduction in permit fees, (ii) a streamlined process for the approvalof permits, or (iii) a reduction in any gross receipts tax.

Summary: Sales and use tax; exemption for oil and gasdrilling equipment. Extends from July 1, 2022, to July 1, 2024,the sunset date of the sales and use tax exemption for materialsand equipment used in the drilling, extraction, or processing ofnatural gas or oil and the reclamation of a well area.

Summary: Income tax subtraction; National Guard.Increases from $3,000 to $5,000 the income tax subtraction for wagesor salaries of a member of the National Guard of the Commonwealthfor taxable years beginning on or after January 1, 2023. The billalso expands the military ranks that qualify for the subtractionfrom O3 and below to O6 and below.