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Richmond, Va. 23218-1115
(804) 367-8031 (Individual)
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      HIGHLIGHTS OF 2015 VIRGINIA TAX LAWS

Tax laws passed by the Virginia General Assembly that have taken or will take effect in 2015 are highlighted below. Complete information is available in the 2015 Legislative Summary on our website. 

General Provisionsone
  • Effective March 26, 2015, disaster-related or emergency-related work performed in Virginia by an out-of-state business is not considered in determining whether the business is required to file, remit, or pay state or local taxes or fees, with the exception of transaction taxes and fees. In addition, out-of-state employees performing disaster-related or emergency-related work are not required to be licensed or registered by Virginia or local governments.
  • Effective July 1, 2015, the Department of Taxation may disclose whether a person is registered to collect retail sales and use tax in Virginia. 
  • Beginning July 1, 2015, the Department of Taxation will charge a $5 fee per copy of a previously-filed tax return requested by a taxpayer. 

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Income Taxthree
  • Virginia's date of conformity to the Internal Revenue Code was advanced from Jan. 2, 2013 to Dec. 31, 2014. 
  • Starting with Taxable Year 2015, individuals may request that income tax refunds be paid by check or direct deposit. Refunds will no longer be issued with debit cards.
  • Effective July 1, 2015, Virginians can open Achieving a Better Life Experience (ABLE) savings trust accounts to pay for qualified expenses for disabled individuals. Interest will be exempt from state and federal income tax. 
  • Changes in subtractions:
    • Starting with Taxable Year 2015, an individual income tax subtraction is allowed for income attributed to the discharge of certain student loans in the event of the student's death. 
    • The sunset date for making investments in certain high technology businesses that qualify for individual and corporation income tax subtractions was extended from June 30, 2015 to June 30, 2020. 
    • Starting with Taxable Year 2015, the subtraction for the sale or exchange of real property or an easement for open-space use is eliminated.
  • Changes in tax credits:
    • Land Preservation Tax Credit: Effective July 1, 2015, the annual credit cap will be reduced to $75 million and the amount of credit that can be claimed by taxpayers annually will generally be reduced to $20,000 for Taxable Year 2015.
    • Recyclable Materials Processing Tax Credit: Starting with Taxable Year 2015, the credit amount is increased to 20 percent of the purchase price of qualified machinery and equipment. However, a credit cap of $2 million per fiscal year was set and, as a result, taxpayers must apply to the Department of Taxation to claim the credit, in addition to having any expenses certified by the Department of Environmental Quality. The sunset date for the credit was extended to cover taxable years beginning before Jan. 1, 2020. 
    • Major Business Facility Job Tax Credit: A qualified major business facility may continue to claim the credit allowed per qualified full-time employee over two taxable years instead of over three taxable years. 
    • Green Job Tax Credit: The sunset date for this credit has been extended from Jan. 1, 2015 to Jan. 1, 2018. 
Retail Sales and Use Taxfour
  • Effective July 1, 2015, all Energy Star light bulbs are tax exempt during the Energy Star and WaterSense Sales Tax Holiday. 
  • Effective July 1, 2015, Virginia's sales tax holidays for school supplies and clothing; Energy Star and WaterSense products; and hurricane preparedness products will be combined into one sales tax holiday that begins on the first Friday of August and ends on the following Sunday. 
  • Effective July 1, 2015, gold, silver, or platinum bullion are exempt from the retail sales and use tax when the sales price for the entire transaction exceeds $1,000. This exemption expires on Jan. 1, 2019. 
  • Beginning June 2015, the annual threshold for dealers to make accelerated sales tax payments was lowered to $2.5 million. 

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Tobacco Taxesfive
  • Effective July 1, 2015, anyone convicted of an offense involving the forgery of documents related to the purchase or sale of cigarettes or tobacco products, the evasion or failure to pay a cigarette or tobacco product excise tax, or any similar local, state, or federal violation will be prohibited from being an authorized holder of cigarettes. 
  • Effective July 1, 2015, new criminal and civil penalties will apply when a person uses a forged business license, a business license obtained under false pretenses, a forged or invalid Virginia sales and use tax exemption certificate, or a Virginia sales and use tax exemption certificate obtained under false pretenses to purchase cigarettes.

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Forest Products Taxsix

Effective July 1, 2015, the Forest Products Tax will be imposed on the first manufacturer using, consuming, processing or storing the forest product for sale or shipment out of state. A manufacturer is any person that for commercial purposes at a fixed place of business i) processes forest products into various sizes and forms, including chips; ii) processes forest products into other products; iii) uses or consumes forest products; or iv) stores forest products for sale or shipment out of state. If there is no manufacturer or the manufacturer is not registered for the tax, then the tax is levied on the severer of the forest products.


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Recordation Taxseven

Effective July 1, 2015, the recordation tax on any deed of trust that modifies or is supplemental to an existing deed of trust will be calculated only on the portion of the debt that is in addition to the original debt on which the tax has been paid instead of the existing debt.
 

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