Tag: Virginia General Assembly

The Budget has not been resolved. The “Veto Session” is scheduled for 12 April. And the Governor could convene a special session. But many have already remarked that this General Assembly session was generally, and comparatively, “quiet”.

Even so, the bills concerning deregulation and universal licensure reminded us of the importance of remaining vigilant and the value of engaging a strong and effective lobbyist. (Great work, Patrick Cushing. Thank you.)

With more than a few high-profile retirements, with every seat in both chambers up for election, and with the possibility that some (perhaps many) of the seats will be filled by freshman legislators, next year’s session is anticipated to be far more “entertaining”.

We will be ready.

That durable readiness depends on not only recharging our PAC investments (donate to the PAC) but also organizing our efforts to educate legislators on the topics of Qualifications-Based Selection (QBS), the most appropriate mode of enacting requirements (through either the legislative or the regulatory process), and the unique and substantial ways that architects contribute to the built environment throughout the Commonwealth. If you are interested in collaborating on that effort, please read this item on the upcoming Advocacy Summit.

We have just reached the halfway marker of the General Assembly. The “Crossover” date of February 15 occurred this week which was the last day for the House and Senate to act on its own legislation. If a bill did not get a hearing before this date, it automatically dies.

Please find below the bills that AIA Virginia is tracking “Actively” and “Monitoring”.  The bills of interest that did not pass this year are listed under the “Dead” category.

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ACTIVE

These bills are being actively lobbied by Williams Mullen, AIA Virginia, and ACEC Virginia. This does not necessarily mean we are testifying before committees on all of these bills. It could mean that we are engaged in conversations with bill patrons or other industries that can alter the legislation’s outcome.

HB 282 – Coyner – Criminal records; effect of criminal convictions on licensure, data to be included in report.

HB 429 – Bulova – Virginia Public Procurement Act; architectural and professional engineering term contracting. [AIA/ACEC Bill – Passed House 99-0]

HB 816 – Torian – Va. Public Procurement Act; any bid or offer under Act to identify all subcontractors.

HB 881 – Fowler – Contracts; payment clauses to be included, right to payment of subcontractors.

SB 225 – McPike – Virginia Public Procurement Act; architectural and professional engineering term contracting. [AIA/ACEC Bill – Passed Senate 38-0]

SB 290 – Favola – State agencies and localities; solar-ready roof requirements, etc.

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MONITOR

AIA Virginia is watching bills placed in this category.  Often, we are watching bills because they are of interest and we want to remain informed.  When this is the case, it is often another organization taking the lead due to its specific expertise and political relationships.  If amendments are introduced that make a bill in this category detrimental to our profession, then it is moved to the ACTIVE list and we engage.  There are some bills that AIA Virginia does not take a position on.  An example of this would be bills that define “small business”.  Because of the composition of our membership, we would not want to take an action that would hurt any of our members.

HB 5 – Morefield – Flood Relief Fund; established.

HB 19 – Fowler – Virginia Public Procurement Act; public higher educational institutions, disclosure by offerors.

HB 73 – Ware – Electric utilities; definitions, aggregate capacity requirements for renewable energy facilities.

HB 74 – Ware – Va. Clean Economy Act; non-bypassable charges, energy-intensive trade-exposed (EITE) industries

HB 101 – Head – Group health benefit plans; sponsoring associations, formation of benefits consortium. (Similar bills: HB 245, HB 884, HB 1169 )

HB 208 – Webert – Regulatory Innovation, Department of and Virginia Regulatory Sandbox Program; created, report.

HB 221 – Davis – STEM+C; included in Standards of Learning.

HB 244 – Webert – Regulatory Budget Program; DPB to establish a continuous Program, report.

HB 282 – Coyner – Criminal records; effect of criminal convictions on licensure, data to be included in report.

HB 332 – Head – Income tax, state and corporate; credit for small businesses.

HB 474 – Brewer – Automatic fire sprinkler inspectors; certification, exempts building officials and fire officials.

HB 516 – Bulova – Flood resiliency & protection; implements recom. from first Va. Coastal Resilience Master Plan.

HB 517 – Bulova – Chief Resilience Officer; clarifies designation and role.

HB 563 – O’Quinn – School Construction Matching Grant Fund and Program; established, funding sources.

HB 741 – Bell – Annual public elementary and secondary school safety audits; creation or review of school building.

HB 818 – Torian – Virginia Public Procurement Act; prompt payment of bills by state agencies, etc.

HB 820 – Torian – Small Business and Supplier Diversity, Department of; disparity study.

HB 847 – Bloxom – Coastal Virginia Resiliency Authority; established, report.

HB 903 – Lopez – Virginia Green Infrastructure Bank; created.

HB 1006 – Brewer – Income tax, state and corporate; deductions for business interest.

HB 1161 – McGuire – Virginia Public Procurement Act; required contract provisions, prohibition.

HB 1210 – Hope – Historic preservation; filing of a historic designation application.

HB 1225 – Bulova – Energy performance-based contracts; roof replacement.

HB 1287 – Runion – Virginia Public Procurement Act; preference for recycled materials.

HB 1289 – Head – Uniform Statewide Building Code; exemption for certain use and occupancy classifications.

HB 1301 – Kilgore – Clean Energy and Community Flood Preparedness Act; repeals Act.

HB 1309 – Bulova – Resilient Virginia Revolving Loan Fund.

HB 1310 – Shin – Virginia Public Procurement Act; moderate-risk contracts; federal General Services Administration.

HB 1325 – Reid – Local governments; additional powers, Commercial Property Assessed Clean Energy financing programs.

HJ 16 – Hodges – Coastal Flooding, Joint Subcommittee studying; continued, appropriation.

SB 94 – Howell – Internal Revenue Code; conformity of the Commonwealth’s taxation system.

SB 117 – Newman – Local school divisions; budget bill to include appropriation of surplus for operational costs.

SB 121 – Hackworth – Contractors; exemption from licensure for work providing remodeling, etc., valued at $25,000, etc.

SB 153 – Locke – Diversity, Equity, and Inclusion, Secretary of; created.

SB 195 – Mason – Group health benefit plans; bona fide associations, formation of benefits consortium. [Similar bill: SB 549]

SB 210 – Petersen – Virginia Public Procurement Act; public higher educational institutions, disclosure by offerors.

SB 276 – Stanley – School boards; unexpended local funds for capital projects.

SB 288 – Ebbin – Income tax, state and corporate; deduction for business interest disallowed.

SB 400 – Hanger – Agritourism event buildings; authorizes the BHCD to promulgate regulations related to buildings.

SB 409 – Morrissey – Criminal convictions; effect on licensure, date to be included in biennial report.

SB 471 – McClellan – Literary Fund; open application process for loans, maximum loan amounts, etc.

SB 472 – McClellan – Retail sales & use tax, additional local; use of revenues for construction or renovation of schools.

SB 473 – McClellan – School Construction Fund and Program; created and established.

SB 481 – McClellan – School boards and local governing bodies; unexpended local funds, etc.

SB 550 – Bell – Virginia Public Procurement Act; payment clauses to be included in contracts; right to payment.

SB 551 – Marsden – Flood resiliency & protection; implements recom. from first Va. Coastal Resilience Master Plan.

SB 732 – Lewis – Climate resilience; locality’s comprehensive plan to consider strategies to address.

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DEAD

The following depicts the bills of interest to AIA Virginia that were introduced but were not successful.  This list is expected to grow as the General Assembly advances. 

HB 12 – Anderson – Public school buildings; limits entry points, screening individuals.

HB 119 – March – Public-Private Competition Act; created, repeals Competitive Government Act, etc.

HB 251 – Simonds – School boards and local governing bodies; unexpended local funds, etc.

HB 252 – Simonds – School division maintenance reserve tool; Department of Education to develop or adopt and maintain.

HB 253 – Simonds – Literary Fund; open application process for loans, maximum loan amounts, etc.

HB 254 – Simonds – School Construction Fund and Program; created and established.

HB 273 – McNamara – Income tax, state; subtractions and deductions related to Paycheck Protection Program loans.

HB 295 – McNamara – Income tax, corporate; reduces tax from its current rate.

HB 352 – Watts – Income tax, state and corporate; business interest.

HB 364 – Willett – Regional planning; climate resilience to be included as part of strategic plans.

HB 374 – Williams Graves – Virginia Public Procurement Act; construction contracts, requirement to submit list.

HB 379 – Sullivan – Energy benchmarking; access to data on energy usage in certain buildings, civil penalty.

HB 471 – Subramanyam – State agencies and localities; solar-ready roof requirements, etc.

HB 531 – Hudson – Sales and use tax, additional local; revenues to support construction or renovation of schools.

HB 602 – Hayes – Flood Control, Department of, and Commonwealth Flood Plan; created, report.

HB 608 – Bourne – School boards; unexpended local funds for capital projects.

HB 701 – Kory – Uniform Statewide Building Code; local building codes and regulations, etc.

HB 707 – Keam – Transportation funding; statewide prioritization process, resiliency.

HB 757 – Krizek – Employment; anti-harassment training requirement.

HB 905 – Lopez – Energy efficiency standards; more stringent energy efficiency requirements.

HB 966 – Subramanyam – Va. Public Procurement Act; executive branch agencies’ goals for participation by small businesses.

HB 967 – Subramanyam – General Services, Department of; point-based program for prime contractors.

HB 998 – Kory – Building energy use intensity; reporting, reduction, requirements, incentive programs.

HB 999 – Maldonado – New structures; construction evaluation of impact of types of electricity.

HB 1099 – LaRock – Retail sales & use tax, additional local; use of revenues for construction or renovation of schools.

HB 1100 – LaRock – Public elementary and secondary school buildings; standards for maintenance, operations, etc.

HB 1219 – Lopez – Historic rehabilitation tax credit.

HB 1253 – Fowler – Department of Professional and Occupational Regulation; licensure by apprenticeship.

SB 15 – Favola – Insurance; paid family leave.

SB 239 – Hashmi – STEM+C; included in Standards of Learning. 

SB 452 – Boysko – Local governments; additional powers, energy efficiency of buildings.

SB 532 – Stuart – Clean Energy and Community Flood Preparedness Act; repeals Act.

SB 540 – Peake – Income tax, state and corporate; credit for small businesses.

SB 569 – Kiggans – Coastal Virginia Resiliency Authority; established.

SB 603 – Stanley – Public elementary and secondary school buildings; standards for maintenance, operations, etc.

SB 734 – Ruff – Va. Public Procurement Act; population thresholds for architectural & prof. engineering contracting.

SB 747 – McDougle – Uniform Statewide Building Code; religious exemptions.

If you have any questions, please feel free to submit them to Corey Clayborne, FAIA at cclayborne@aiava.org

On February 8th, the 2021 General Assembly session adjourned sine die. Nearly immediately thereafter, the General Assembly convened a Special Session on February 10th which adjourned sine die on March 1st.  The General Assembly considered 1,476 pieces of legislation, which is well short of the 2,000-3,000 bills typically considered. This decrease was due to the bill limits set by each body, 7 bills for each House member, and 12 bills for each Senate member.

This General Assembly session was unique in other ways as well. For example, the House of Delegates adopted an entirely virtual format, which had members participating remotely from their home districts. The Senate of Virginia opted for a hybrid model and conducted in-person floor sessions and committee meetings at the Science Museum of Virginia. For both bodies, public participation in committee and subcommittee meetings was limited to virtual testimony. This means that lobbying consisted solely of communication through text messaging, calls, and videoconferences.

Week after week, you saw the bills that we were actively engaging and monitoring. As such, this article will focus on the three main legislative victories for our organization this session.

Defeat of HB 2259 – Governor; issuance of licenses to persons denied by regulatory board

This bill provides that the Governor may issue a license of the kind granted by a regulatory board under the Department of Professional and Occupational Regulation or the Department of Health Professions to any person whose application for such license to such board has been denied. AIA Virginia believes that the process in place for regulating architecture should not be circumvented. It has successfully served in protecting the health, safety, and welfare of the general public as it takes into consideration the education, experience, and examination required for licensure. We actively opposed this legislation and it was successfully defeated.

An active stakeholder on HB 5002 – Establish Small Business & Women-owned & Minority-Owned Business Procurement Enhancement Programs.

Governor Ralph Northam announced the results of the Commonwealth’s disparity study, which demonstrate the need for the narrowly tailored race – and gender-conscious measures to increase equitable opportunities for women – and minority-owned businesses in state contracting. The outcomes of the study will guide the Northam Administration’s ongoing work with General Assembly leaders to increase supplier diversity and equity in the state procurement process. Read the executive summary of the 2020 disparity study here.

AIA Virginia supported this legislation, however it did not pass in its current form. Due to our support, the Administration has committed to giving AIA Virginia a seat at the table during the discussions to retool the legislation for reintroduction.

That’s right.

We will be at the table on this very important piece of the equity discussion.

Tax Conformity via HB 1935 and SB 1146

Each year the General Assembly decides which federal tax provisions the Commonwealth will conform to so Virginians know which provisions apply when filing their state income tax returns. Because of the pandemic, Congress passed numerous federal tax changes in the CARES Act and Consolidated Appropriations Act to provide immediate relief to struggling employers.

Specifically, two tax provisions were provided to PPP loan recipients 1) forgiven loans would not be taxable and 2) business expenses paid with those loan proceeds could be deducted.

Both bills included the income exclusion provision. There was a question regarding what to include regarding deductibility [$25,000 in one bill vs. $100,000 in the other bill]. AIA Virginia was part of a 43-Member Coalition that successfully advocated for the $100,000 deduction cap. This provides full deductibility to almost 80% of Virginia businesses who received a PPP loan.

These three victories are quite substantial in any legislative environment, notwithstanding a virtual General Assembly. Please continue to support our efforts by investing in our PAC at www.aiavapac.org.

Every investment matters!

If you have any questions, please reach out to Executive Vice President, Corey Clayborne, FAIA at cclayborne@aiava.org

The regular session adjourned sine die on Monday, February 8^th. Governor Northam called a Special Session immediately following which commenced on that Wednesday and will adjourn sine die on Monday, March 1.

ICYMI: Governor Ralph Northam announced the results of the Commonwealth’s disparity study, which demonstrate the need for narrowly tailored race- and gender-conscious measures to increase equitable opportunities for woman- and minority-owned businesses in state contracting. The outcomes of the study will guide the Northam Administration’s ongoing work with General Assembly leaders to increase supplier diversity and equity in the state procurement process. Read the executive summary of the 2020 disparity study here.

To encourage woman- and minority-owned business participation in the procurement process, the Commonwealth will support a substitute to House Bill 1784, patroned by Delegates Jeion Ward and Rodney Willett and Senators Jennifer McClellan and Mamie Locke. This bill would establish an overall goal of 23.1 percent discretionary spending with woman- and minority-owned businesses. This percentage represents the average of the participation of woman- and minority-owned businesses in state procurement work over the past five years and their availability for state procurement work. This would apply to discretionary spending in categories from which the Commonwealth derives procurement orders, prime contracts, and subcontracts. This legislation also codifies Governor Northam’s goal of procuring at least 42 percent discretionary spending from SWaM-certified businesses.

In addition, the bill establishes a new division at the Department of Small Business and Supplier Diversity (DSBSD) that will work closely with the Department of General Services (DGS), Virginia’s primary procurement agency, to ensure that the SWaM-certified business goal of 42 percent and the woman- and minority-owned business goal of 23.1 percent are met each year, and there is appropriate monitoring of prime contractor compliance.

The study found that 13.4 percent of total state contracts were awarded to woman- and minority-owned businesses from 2014 to 2019. The most recent disparity study was published in 2011, found that only 2.82 percent of all state contracts were awarded to woman- and minority-owned businesses. While these results show improvement, the 2020 study also found that woman- and minority-owned businesses would be expected to receive 32.8 percent of state contracting dollars based on their availability to provide goods and services to the Commonwealth, demonstrating that there is more work to do.

The full results from the 2020 disparity study are available here.

The substitute bill is HB 5002 in which we have been working with the Administration to ensure that there is more equity in contract awards and administered in a way that can be fairly and effectively implemented.

Below, you will find an update of the organization’s “Active”, “Monitor”, and “Dead” lists.

ACTIVE
These bills are being actively lobbied by Williams Mullen, AIA Virginia, and ACEC Virginia. This does not necessarily mean we are testifying before committees on all of these bills. It could mean that we are engaged in conversations with bill patrons or other industries that can alter the legislation’s outcome.

HB 1811 – Helmer – Virginia Public Procurement Act; preference for energy-efficient and water-efficient goods.

HB 2001 – Helmer – State and local buildings, certain; building standards.

HB 2227 – Kory – Uniform Statewide Building Code; amendments, energy efficiency and conservation.

HB 5002 – Ward – Small Business & Women-owned & Minority-owned Business Procurement Enhancement Programs; establish.

SB 1209 – Petersen – Subcontractor’s employees; liability of general contractor for wages.

SB 1305 – McPike – Virginia Public Procurement Act; public works contracts, subcontractor workforce requirements.

SB 1384 – Surovell – Virginia Public Procurement Act; local arbitration agreements.

MONITOR
AIA Virginia is watching bills placed in this category.  Often, we are watching bills because they are of interest and we want to remain informed.  When this is the case, it is often another organization taking the lead due to its specific expertise and political relationships.  If amendments are introduced that make a bill in this category detrimental to our profession, then it is moved to the ACTIVE list and we engage.  There are some bills that AIA Virginia does not take a position on.  An example of this would be bills that define “small business”.  Because of the composition of our membership, we would not want to take action that would hurt any of our members.

HB 1800 – Torian – Budget Bill.

HB 1849 – Simonds – Virginia Public Procurement Act; participation in apprenticeship training programs, etc.

HB 1935 – Watts – Income tax, state; conformity with the Internal Revenue Code.

HB 2063 – Mullin – Virginia Overtime Wage Act; overtime compensation employees, penalties.

HB 2071 – Convirs-Fowler – Transportation funding; statewide prioritization process, resiliency.

HB 2137 – Guzman – Paid sick leave; employers to provide to certain employees.

HB 2177 – Torian – Capital outlay plan; repeals existing six-year capital outlay for projects to be funded.

HB 2178 – Torian – Commonwealth of Virginia Higher Educational Institutions Bond Act of 2021; created.

HB 2221 – Hayes – Environmental permits; community and environmental justice outreach.

HB 2288 – Williams Graves – Va. Public Procurement Act; construction contracts, requirement to submit list of subcontractors.

HB 2327 – Krizek – Prevailing wage rate; public contractors.

SB 1100 – Howell – Budget Bill.

SB 1109 – Stanley – Voter referendum; issuance of state general obligation bonds for school facility modernization.

SB 1155 – Howell – Capital outlay plan; repeals existing six-year capital outlay for projects to be funded.

SB 1209 – Petersen – Subcontractor’s employees; liability of general contractor for wages.

SB 1284 – Favola – Commonwealth Clean Energy Policy; established.

SB 1350 – Lewis – Transportation funding; statewide prioritization process, resiliency.

DEAD
The following depicts the bills of interest to AIA Virginia that were introduced but were not successful.  This list is expected to grow as the General Assembly advances. 

HB 1741 – Campbell, R.R. – Va. Public Procurement Act; contract clause requiring subcontractor reporting of certain payments.

HB 1755 – Carter – Right to work; repeals provisions of Code that refers to denial or abridgement.

HB 1784 – Ward – Small Business Procurement Enhancement Program; established, report.

HB 1787 – McNamara – Income tax, state; establishes an exclusion for Paycheck Protection Plan loan forgiveness.

HB 1794 – Davis – Collective bargaining; prohibited considerations during negotiations.

HB 1857 – Subramanyam – Virginia Public Procurement Act; architectural and professional engineering term contracting.

HB 1937 – Rasoul – Green New Deal Act; establishes a moratorium, effective January 1, 2022, etc.

HB 1974 – Rush – Architects & professional engineers; exemptions from license requirements for onsite sewage systems.

HB 2015 – Ayala – Essential workers; hazard pay, employer to provide personal protective equipment, civil penalty.

HB 2016 – Ayala – Paid family and medical leave program; Virginia Employment Commission required to establish.

HB 2093 – O’Quinn – School Construction Fund and Program; created and established.

HB 2103 – Reid – Certain public & private employers to provide earned paid sick time.

HB 2143 – Miyares – COVID-19 virus; immunity from civil claims related to the transmission of or exposure to the virus.

HB 2237 – McQuinn – Virginia Public Procurement Act; project labor agreements, transportation projects.

HB 2246 – LaRock – State agencies; automatic workforce management verification software.

HB 2259 – Scott – Governor; issuance of licenses to persons denied by regulatory board. [OPPOSED]

HB 2306 – VanValkenburg – Va. Public Procurement Act; contract clause requiring subcontractor reporting of certain payments.

HJ 552 – Levine – Recurrent inland and urban flooding across the Commonwealth; joint subcommittee to study.

SB 1186 – Hashmi – Landfill siting; historic preservation.

SB 1224 – Boysko – Uniform Statewide Building Code; amendments, energy efficiency and conservation.

SB 1330 – Boysko – Paid family and medical leave program; Virginia Employment Commission to establish.

SB 1352 – Lewis – Flood Control and Commonwealth Flood Control Board, Department of; established, report.

SB 1362 – Lewis – Employers; reporting outbreaks of COVID-19.

SB 1419 – Marsden – Project labor agreements; public interest.

SB 1449 – Chase – COVID-19 immunization; prohibition on requirement, employment discrimination prohibited.

SB 1450 – Chase – COVID-19 vaccination; discrimination in employment prohibited.

If you have any questions, please feel free to submit them to Corey Clayborne, FAIA at cclayborne@aiava.org

The 2020 Special Session began on Tuesday, Aug. 18, to address the forecasted budget shortfall, impacts directly associated with COVID-19, and the ongoing calls for social and criminal justice reforms. At the start of the special session, Governor Northam introduced a budget that was crafted to meet a projected $2.7 billion revenue shortfall over the course of the current biennium. When the COVID-19 shutdown started impacting state finances, the Governor froze (unallotted) most new discretionary spending until new revenue forecasts could be obtained and the General Assembly could meet in a special session to make adjustments. When the new revenue forecasts became available, they showed that while the state’s revenues declined, it was not as dire as was originally predicted. This was most likely due to the fact that Virginia benefits from a large federal government presence which did not wane as COVID-19 appeared, and Virginia’s large technology sector was still able to operate effectively despite the closure of many physical offices.  With this information, prior to special session, the Governor proposed a revised budget. In this revised budget, the Governor balanced the budget by making most of the budget freezes (or “unallotments”) permanent, while sparingly introducing a few new spending priorities.

From a process standpoint, the special session was unlike any other before it. To ensure the safety of its members, the House moved floor sessions and all committee meetings to a virtual format. The Senate, taking a different approach, continued to meet in person for floor sessions and committee meetings, albeit in a larger temporary space inside the Science Museum of Virginia. Citizen input to the House and Senate committee meetings was limited solely to written testimony and virtual appearances via videoconference.

The Virginia General Assembly finished consideration of bills and the budget on Friday, Oct. 16, making it the same length as a traditional “long” session (60 days). The General Assembly passed bills to ban chokeholds, “no knock” warrants, and establishing minimum training standards for law enforcement agencies. They passed measures giving local government the option to create civilian review boards with subpoena power to investigate alleged police misconduct and giving the Attorney General the power to investigate allegations of systemic racism within law enforcement agencies.

Since our September legislative update, Del. Guzman’s (D-Woodbridge) paid quarantine leave (HB 5116) bill failed in the Senate Committee Commerce and Labor by a 14-1 vote. The two bills (SB 5067 – Saslaw and HB 5074 – Sullivan) that would provide businesses immunity from civil claims related to the transmission of or exposure to COVID-19 were stricken by their respective patrons after the inability to have labor and business groups reach an agreement. Lastly, Sen. Lewis’ (D-Accomac) bill (SB 5106) that would extend local land use approvals to address the pandemic passed and was signed by the Governor.

The General Assembly is now faced with only two months left to prepare for the 2021 regular session, which is scheduled to begin on Wednesday, Jan. 13, 2021. The House will meet virtually during session in 2021. Currently, the Senate is planning to meet socially distanced at the Science Museum of Virginia.

If you have any questions, please feel free to submit them to Corey Clayborne, FAIA at cclayborne@aiava.org

*Source: Williams Mullen

On Friday, October 16, the General Assembly’s Special Session went into recess. It did not adjourn. This allows the Governor to modify the budget to enact the redistricting constitutional amendment on November’s ballot if it passes.

Since our September legislative update, Del. Guzman’s (D-Woodbridge) paid quarantine leave (HB 5116) bill failed in the Senate Committee Commerce and Labor by a 14-1 vote. The two bills (SB 5067 – Saslaw and HB 5074 – Sullivan) that would provide businesses immunity from civil claims related to the transmission of or exposure to COVID-19 were stricken by their respective patrons after the inability to have labor and business groups reach an agreement. Lastly, Sen. Lewis’ (D-Accomac) bill (SB 5106) that would extend local land use approvals to address the pandemic has passed the House and Senate and awaiting the signature of the Governor.

Virginia Releases September 2020 Revenue Report

as reported from the Office of the Governor

Governor Ralph Northam announced that September General Fund revenue increased 7.6 percent from the previous year, driven by growth in payroll withholding, corporate, and recordation tax collections.  The Governor reported that Virginia’s General Fund revenues are increasing, and the Commonwealth has been able to avoid the major revenue shocks that other states are experiencing because of the ongoing pandemic. This is the result of the proactive measures Virginia has taken to mitigate the impacts of the virus on the state’s economy and put the Commonwealth on the path toward a strong recovery.

With September marking the end of the first quarter of fiscal year 2021, Secretary of Finance Aubrey Layne, reported this quarter’s revenue performance confirms that the Commonwealth took a measured and prudent path in the updated Interim Forecast released in August.

With one more deposit day than September of last year, payroll withholding grew 11.4 percent for the month. Furthermore, the first non-withholding estimated payment for fiscal year 2021 was due in September. Collections in non-withholding grew 2.4 percent over last year. Collections of sales and use taxes, reflecting August sales, fell 3.2 percent in September—almost all of the decline is due to accelerated sales tax (AST) refunds. As with non-withholding, the due date for the first estimated payment for corporate income tax collections for the fiscal year was also due in September. Collections of corporate income tax increased 17.4 percent in September from September of last year. Finally, collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $56.6 million in September, compared with $36.6 million in September of last year.   

On a fiscal year-to-date basis, total revenue collections rose 9.9 percent, well ahead of the annual forecast of a 1.8 percent decrease. On a fiscal year-to-date basis, collections of payroll withholding taxes—63 percent of General Fund revenues—increased 2.4 percent, equal to the annual estimate. Year-to-date non-withholding collections were $982.4 million compared with $617.6 million in the same period last year, increasing by 59.1 percent, ahead of the annual estimate of a 3.6 percent decline. Sales tax collections—16 percent of General Fund revenues—increased 7.5 percent through September, ahead of the annual forecast calling for a 9.7 percent decrease. Through the first quarter of the fiscal year, corporate income tax collections rose 36.1 percent from the same period last year, ahead of the annual estimate of a 3.0 percent increase. Finally, collections of wills, suits, deeds, and contracts were up 35.9 percent in the first quarter, well ahead of the forecasted 12.6 percent decline.   

If you have any questions, please feel free to submit them to Corey Clayborne, FAIA at cclayborne@aiava.org