A BILL to require the Chairs of the House Committee on Finance and the Senate Committee on Finance and Appropriations to convene a work group to evaluate the feasibility of establishing an independent tax tribunal in the Commonwealth; report.
HB734 requires the chairs of the House Finance Committee and the Senate Finance and Appropriations Committee to convene a work group to study whether Virginia should create an independent tax tribunal. The work group would include legislators, tax officials, attorneys experienced in tax disputes, CPAs, circuit court judges, and other stakeholders. Its charge is to examine the American Bar Association’s model tax tribunal act, assess how a tribunal would interact with the Department of Taxation’s existing Tax Adjudication and Resolution Division, and evaluate how similar bodies operate in other states.
The study would also look at practical implementation issues, including startup and ongoing costs, staffing needs, the number and selection of tribunal judges, retirement provisions, and the structure of appeals from tribunal decisions. Another major topic is whether CPAs should be allowed to represent taxpayers before the tribunal. The work group must finish by November 1, 2027, and submit a report with findings and recommendations by January 1, 2028.
The bill does not immediately change Virginia tax law or create a tribunal; instead, it directs a formal legislative study that could lead to future legislation establishing an independent tax dispute forum. If adopted later, such a tribunal could alter how state tax assessments are challenged, potentially shifting some dispute resolution away from existing administrative processes and into a new independent body or court-like structure. The bill also contemplates possible changes to who may represent taxpayers and how appeals would be handled, which could affect taxpayers, tax practitioners, the Department of Taxation, and the courts.
The available record shows no committee debate or recorded votes, and the bill was left in the Committee on Rules. Based on the bill text, the proposal appears exploratory and policy-focused rather than immediately controversial, aiming to gather information before any structural change is made. The inclusion of a broad range of stakeholders suggests an effort to build consensus around a complex tax administration issue.
The main points of potential contention are whether Virginia needs an independent tax tribunal at all, whether it should be housed in the executive branch or operate as a more independent judicial body, and how much it would cost to establish and run. Additional likely disputes include the appropriate appeal path for tribunal decisions, whether CPAs should be allowed to represent taxpayers in these proceedings, and how the new tribunal would interact with the Department of Taxation’s existing adjudication division. These issues would likely divide tax administrators, practitioners, judges, and policymakers concerned about efficiency, independence, and administrative burden.