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Mark R. Warner, Governor of Virginia
   

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Virginia rated Number One in nation

Tax and Budget Reform

In November 2003 Governor Warner introduced his Budget and Tax Reform plan, aimed at making the tax code fairer while preserving Virginia's fiscal integrity and core services.  The Governor was especially concerned with honoring the state's commitments in public education.   He ran the state's first 6-year financial projection, which showed that required spending outpaced even optimisitic revenue projections.  Another chief goal of his reform plan was to restructure the tax code to bring some relief to Virginians.

155 Days Later . . .  How the Plan Fared

After much debate and the calling of a Special Session to resolve key differences among legislators, a Tax Reform bill was passed that accomplishes the Governor's three main goals:

  • To make the tax code fairer
  • To meet Virginia's commitment to education and other core services
  • To preserve the state's fiscal integrity and help secure its triple-A bond rating

For a brief summary of the Tax Reform and Budget Plan as passed, you can download the presentation the Governor used when reporting back to localities across the state:

Of the 16 specific components proposed by Governor Warner, 11 have been adopted into law:

Tax Cuts
  • Raise the income tax filing threshhold (minimum income at which you must file a return)
  • Raise the personal exemption
  • Reduce the sales tax on food
  • Eliminate the marriage penalty
  • Provide tax relief to military and National Guard families
  • Provide tax incentives for small businesses to invest in Virginia
Restructuring the Tax System
  • Reform the age deduction (based on income)
  • Increase the state sales tax
  • Close some corporate loopholes (intangible holding companies)
  • Require corporations using "pass through entities" to report their shareholders' earnings in Virginia
  • Increase the state cigarette tax

For more detailed information about tax reform and budget legislation that has been passed by the General Assembly, check out the following links:

You can also review the Governor's entire original Tax Reform and Budget plan here.

 

Governor of Virginia - Mark R. Warner
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2006

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