Virginia Lawmakers Finally Pass Budget, However, Still Work to be Done

September 6, 2023

Virginia small business owners still eager for additional tax relief.

Virginia Lawmakers Finally Pass Budget, However, Still Work to be Done

On September 6, NFIB, or the National Federation of Independent Business, reacted to the legislature’s passage of Virginia’s budget, six months after lawmakers gaveled out of the 2023 session in February. Last week, legislators announced an agreement on “major components” of a compromise and rolled out the full bill last weekend. Today, lawmakers passed the budget with bi-partisan support. It includes more than $1 billion in one-time tax rebate checks, an increase in the standard deduction for individual and joint filers and brings back the popular sales tax holiday in Virginia. “While the process took much longer than necessary, small business owners are encouraged that the final budget includes more than $1 billion in tax relief,” said Julia Hammond, NFIB State Director in Virginia. “While our small business owners would have preferred a reduction in personal income taxes, they are encouraged by the rebate checks and will look for and push future tax relief in upcoming legislative sessions. Today’s bi-partisan passage of the budget indicates lawmakers understand that for our state to thrive, its small business owners require an increase in capital to create jobs, hire qualified workers, and deal with inflation and supply chain backups. Virginia small businesses are eager to use the one-time rebate check to invest back in their businesses and give hard working employees a raise. Here’s the bottom line: Virginia’s final budget provides relief to low-and middle-income residents and small businesses alike.” Most of the $1.05 billion in tax reductions comes from one-time tax rebates of $200 for individuals and $400 for joint filers. The rest is from an increase in the standard deduction for tax years 2024 and 2025. Individuals will go from $8,000 to $8500 and joint filers from $16,000 to $17,000, a change NFIB has been advocating for the past two years. The budget also brings back Virginia’s sales tax holiday for school supplies, hurricane preparedness, and energy efficient goods, which has been a bonus for NFIB’s retail small businesses. Lastly, the budget raises the deduction for business interest expenses and removes the age limit for an exemption of military retirement income. The budget passage comes during a busy time for legislators. Every General Assembly seat is on the ballot in November. Last month,NFIB released its voting record for the past two legislative sessions. The voting record includes all of Virginia’s 40 Senators and 100 members of the House of Delegates. They were graded by how they voted on key pieces of legislation that include issues of critical importance to Virginia small business owners such as mandatory paid sick leave, overtime and the repeal of Virginia’s onerous Overtime Wage Act and freezing the minimum wage. The score card indicates which legislators truly support small business when it matters. It’s also a great tool for the public to educate themselves on how their elected official voted the past two legislative sessions.

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