An Act to amend and reenact §§ 58.1-811, as it is currently effective and as it may become effective, and 58.1-3607 of the Code of Virginia and to repeal §§ 58.1-3650.31 and 58.1-3650.716 of the Code of Virginia, relating to tax exemptions; Confederacy organizations.
HB167 amends Virginia’s recordation tax exemption statutes to remove special tax exemptions tied to Confederacy organizations. The bill specifically repeals two Code sections, §§ 58.1-3650.31 and 58.1-3650.716, and revises § 58.1-811 and related provisions governing exemptions from deed, deed of trust, and mortgage taxes. In the deed exemption list, it deletes the exemption for conveyances to the Virginia Division of the United Daughters of the Confederacy and makes conforming changes to the numbering of the remaining exemptions.
The bill also updates the list of transactions and entities that remain exempt from these taxes, including transfers to educational institutions, churches, government bodies, nonprofit hospitals, certain corporate reorganizations, partnerships, trusts, low-cost housing nonprofits, partition deeds, and divorce-related transfers. In practical terms, the measure narrows the scope of Virginia’s tax exemptions by eliminating a historically specific benefit for Confederacy-related organizations while leaving the broader structure of recordation tax exemptions intact.
HB167 changes Virginia tax law by removing statutory exemptions that previously applied to deeds and related instruments involving Confederacy organizations, most notably the Virginia Division of the United Daughters of the Confederacy. It repeals two sections of the Code of Virginia and amends § 58.1-811 to strike the Confederacy-related exemption and renumber the remaining exemptions. The bill affects parties involved in real estate conveyances, deeds of trust, and mortgages where those organizations would otherwise have qualified for tax relief, but it does not alter the general exemptions available to other nonprofit, governmental, religious, and restructuring transactions.
The available record shows the bill was enacted as Chapter 788 and approved on April 13, 2026, with no recorded committee transcript or vote details provided. Based on the final passage, the overall sentiment appears to have been favorable enough for enactment, suggesting legislative support for removing the targeted tax preference. Because no discussion excerpts are included, there is no direct evidence of opposition or debate in the supplied materials.
The central point of contention, based on the bill’s subject matter, is the elimination of a tax exemption associated with Confederacy organizations, especially the Virginia Division of the United Daughters of the Confederacy. Supporters would likely view the change as a policy decision to end a special tax benefit tied to Confederate heritage groups, while opponents could argue that the exemption should remain available on historical or organizational grounds. The bill does not present broader controversy over the rest of the recordation tax exemption framework, which remains largely unchanged.