Overview of Virginia's Death Tax
The Federal tax cut and Virginia
Federal legislation passed in 2001 eliminates the federal death tax over the next several years. But because Virginia's Death Tax is based on the pre-repeal federal law, Virginia families will continue to pay state death taxes equal to as much as 16 percent of their entire estate. By 2005, the state death taxes of at least 30 states has been eliminated while Virginia families and businesses continue to suffer.
Getting rid of Virginia's death tax is common sense
- Protect all family-owned farms and businesses.
- Promote additional economic investment and job creation.
- Preserve family-owned farms and open spaces for future generations.
- Protect women and minority-owned ventures that are often hit hard by this unfair tax.
- Make for a more fair, equitable and efficient tax system.
- Attract businesses, assets and jobs from other states where death taxes are imposed.
- Prevent companies and families from relocating to other states.
- Avoid an actual increase in the death tax.
- Economists in the Department of Planning and Budget assert that capital formation and investment in Virginia will increase as a result of death tax cut (Virginia Dept. of Planning and Budget Division of Economic and Regulatory Analysis, Jan. 7, 2004).
What Virginia's death tax repeal legislation does
- Saves family farms and family-owned businesses and keeps taxpaying families and job producing businesses in Virginia, thereby fostering economic growth.
- Prevents families from having to liquidate their businesses and farms and lay-off employees.
- Fully conforms Virginia to federal law, which brings Virginia into line with the at least 30 states that are phasing out the unfair death tax, and eliminates Virginia's death tax entirely.
- Passing this legislation will avoid the automatic tax increase that will be imposed on Virginians by operation of the federal and state death tax laws.
- If Virginia fails to pass this legislation, much of Virginia's death tax revenues and other state and local revenues will be lost as taxpaying families and job-producing businesses leave.
What Virginians think about Virginia's unfair death tax
Virginians overwhelmingly reject the state death tax as unfair and support repeal. In a June 2002 statewide survey by the Luntz Research Companies (sample of 400 registered Virginia voters, June 1-7, 2002, +/- 4.5 percent), 82 percent of registered voters in Virginia favored reducing and eventually eliminating Virginia's death tax. And 67 percent feel the death tax is unfair: That's higher than the 55 percent who feel the car tax is unfair.
Virginia's death tax compared to other states
In 2005, Virginia will be one of only a handful of states that will continue to collect a state death tax. Virginia's death tax will continue to be as high as 16 percent of everything you own. Estates in at least 30 other states will be paying nothing.
Who is helping to eliminate Virginia's death tax
Delegates Bob Tata and Senators Tommy Norment and Emmett Hanger plan to introduce legislation to eliminate the Virginia death tax. Virginians for Death Tax Repeal is a coalition of nearly 60 agricultural, family, preservation, small business and tax policy organizations supporting their efforts and dedicated to repeal of Virginia's unfair death tax.
Consensus emerges to repeal Virginia's death tax
Coalition efforts to repeal the death tax started after the 2002 General Assembly considered Del. Bob Tata's initiative to repeal this unfair tax. More than two-thirds of the House and Senate voted to repeal this tax in 2003. In 2004, both the House and Senate approved different versions of repeal legislation.
Today, Governor Tim Kaine supports full repeal of the death tax. The House Republican Caucus endorsed full repeal over the summer and key Democrat leaders like Delegate Frank Hall and Steve Shannon have voted for repeal. Three leading members of Senate Finance, Senator Norment, Senator Houck and Senator Hanger, have been outspoken in their support for repeal. It appears that the 2006 session may be our best opportunity to repeal the death tax in Virginia as long as senators and delegates who supported full repeal keep faith with family farmers and small-business owners across Virginia and continue to support full and honest repeal.
What to Do: Call your legislator and tell them to support Full Repeal of the Death Tax and then call the NFIB office at (804) 377-3661 to let NFIB/Virginia State Director Gordon Dixon know who you talked to.
Virginians for Death Tax Repeal contacts
| Stephen A. Horton | Mark Bowles | Jeffrey M. Britt |
| Phone: (804) 775-1928 | Phone: (804) 775-1904 | Phone: (804) 775-1936 |
| Steve@deathtaxrepeal.com | Mbowles@mwcllc.com | Jbritt@mwcllc.com |
Virginians for Death Tax Repeal Coalition members
Women Impacting Public Policy
Southeastern Lumber Manufacturers Association
Virginia Trucking Association
Shenandoah Valley Builders Association
Virginia Soybean Association
Homebuilders Association of Richmond
Virginia Road and Transportation Builders Association
Retail Merchants Association
Virginia Retail Merchants Association
Retail Alliance of Hampton Roads
Virginia Ready Mixed Concrete Association
Proprietary Child Care Association of Virginia
Virginia Association of Realtors
Prince William Taxpayers Alliance
Virginia Propane Gas Association
Policy and Taxation Group
Virginia Poultry Federation
Old Dominion Highway Contractors Association
Virginia Petroleum, Convenience and Grocers Association
National Taxpayers Union
Virginia Motorcycle Dealers Association
National Grocers Association
Virginia Hospitality and Travel Association
National Federation of Independent Businesses
Virginia Funeral Home Directors Association
National Black Chamber of Commerce
Virginia Forestry Association
Mid-Atlantic Cleaners Association
Virginia Forest Products Association
Family Foundation of Virginia
Virginia Food Dealers Association
Fairfax County Chamber of Commerce
Virginia Farm Bureau Federation
Eagle Forum
Virginia Dairymen's Association
Chase Investment Counsel Group
Virginia Club for Growth
CatholicVote.org
Virginia Beach Taxpayer Alliance
Car and Truck Rental and Leasing Association
Virginia Automotive Recyclers Association
Builders and Associates of Central Virginia
Virginia Automobile Dealers Association
Brookneal Area Chamber of Commerce
Virginia Auto Body Association
Austin Brockenbrough and Associates
Virginia Assoc of Towing and Recovery Operators
APVA, Douglas Southall Freeman Branch
Virginia Association of Roofing Contractors
Associated General Contractors of Virginia
Virginia Association of Marine Industries
Arlington Taxpayers Alliance
Virginia Association of Broadcasters
American Family Business Institute
Virginia Agribusiness Council
60 Plus Association
Virginia Aggregates Association
(partial listing)
