A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.15, relating to income tax; real property tax relief credit.
HB1051 creates a new refundable individual income tax credit for certain Virginia taxpayers who pay significant local real property taxes. The credit would be available for taxable years beginning on and after January 1, 2026, and before January 1, 2031, to individuals or married couples filing jointly with federal adjusted gross income at or below $75,000 for single filers or $100,000 for joint filers, so long as their real property tax burden is at least 4% of federal adjusted gross income.
The credit amount would be the lesser of the actual real property taxes paid to Virginia localities or $500 for single filers and $1,000 for joint filers, with a reduced amount for married individuals filing separately. The bill directs the Tax Commissioner to issue guidelines for claiming the credit and exempts those guidelines from the Administrative Process Act. It also includes a nonseverability clause, meaning if any part of the first enactment is struck down as invalid or unconstitutional, the provision is not severable.
HB1051 would add § 58.1-339.15 to the Code of Virginia and create a new refundable income tax credit tied to local real property taxes, affecting both the state income tax system and taxpayers who own and pay property taxes in Virginia. The measure would provide targeted tax relief to lower- and middle-income homeowners whose property tax bills consume a relatively large share of income, while also potentially reducing state revenue during the credit period.
There is no recorded committee debate or vote history in the provided materials, so the bill’s sentiment must be inferred from its sponsorship and structure. The bill appears generally supportive of property tax relief for homeowners and likely reflects a favorable policy goal among its patrons, but the absence of transcripts or votes means there is no documented public discussion here showing support, opposition, or amendments.
The main policy questions likely concern eligibility thresholds, the 4% income-to-property-tax trigger, and the size and refundable nature of the credit, all of which determine the fiscal cost and who benefits. Another possible point of contention is the bill’s nonseverability clause, which is unusual and could raise concerns about legal risk if any part of the enactment is challenged. Because no committee discussion is provided, no specific member or stakeholder objections are documented in the record supplied.