HB 785

Abstract

Local tax authority. Modifies or eliminates several restrictions that apply to taxes imposed by counties, and establishes a new restriction on cigarette taxes imposed by any locality. The bill authorizes most counties to impose an admissions tax, not to exceed a 10 percent rate. Under current law, only certain counties may impose an admissions tax. The bill eliminates the limit on the rate of transient occupancy tax that a county may impose. The bill requires that any revenue attributable to a rate over two percent but not exceeding five percent must be dedicated to tourism marketing. Under current law, all counties may impose a transient occupancy tax of up to two percent, and certain counties may impose it up to a higher maximum rate. The bill authorizes any county to impose a cigarette tax up to a maximum rate of 40 cents per pack. It also provides that any locality that imposes such tax at a rate higher than 40 cents per pack may not increase such rate. The provisions related to the cigarette tax have a delayed effective date of July 1, 2021. Under current law, only certain counties may impose a cigarette tax, and cities and towns may impose such tax with no limit on the rate. The bill authorizes any county to impose a food and beverage tax of up to six percent and eliminates the requirement that a county hold a referendum before imposing such tax. Under current law, all counties may impose the tax after a referendum but the rate may not exceed four percent. This bill is identical to SB 588.

Local taxing authority. Equalizes city taxing authority and county taxing authority by granting a county the same authority to impose taxes on cigarettes, admissions, transient room rentals, meals, and travel campgrounds without limitation on the rate that may be imposed.The bill authorizes all counties to impose an admissions tax with no restriction on the rate. Under current law, only certain counties may impose an admissions tax, and the rate generally is capped at 10 percent. Under current law, all cities may impose the tax with no restriction on the rate.The bill authorizes all counties to impose a transient occupancy tax with no limitation on the rate that may be imposed. Under current law, counties generally are limited to a maximum rate of two percent, although certain counties may impose the tax at higher rates. The bill provides that, unless otherwise provided by law prior to January 1, 2020, the revenue from a tax rate above two percent up to five percent is restricted to tourism purposes and tax rates above five percent may be used as general revenue.The bill authorizes all counties to impose a cigarette tax with no restriction on the rate. Under current law, only Arlington County and Fairfax County may impose a cigarette tax, and the rate is limited to 30 cents per pack. Under current law, all cities may impose the tax with no restriction on the rate.The bill eliminates the limit of four percent on a county food and beverage tax (commonly referred to as the meals tax). Under current law, such limit applies to counties but not cities. The bill also removes the requirement that a county hold a referendum before imposing a meals tax. Under current law, such requirement applies to counties but not cities.The bill provides that no county that held a referendum prior to July 1, 2020, that was defeated may impose a certain tax until six years after the date of such referendum, unless a successful referendum was held after the defeated referendum and before July 1, 2020.

Local tax authority. Modifies or eliminates several restrictions that apply to taxes imposed by counties, and establishes a new restriction on cigarette taxes imposed by any locality. The bill authorizes most counties to impose an admissions tax, not to exceed a 10 percent rate. Under current law, only certain counties may impose an admissions tax. The bill eliminates the limit on the rate of transient occupancy tax that a county may impose. The bill requires that any revenue attributable to a rate over two percent but not exceeding five percent must be dedicated to tourism marketing. The provisions related to the transient occupancy tax have a delayed effective date of May 1, 2021. Under current law, all counties may impose a transient occupancy tax of up to two percent, and certain counties may impose it up to a higher maximum rate. The bill authorizes any county to impose a cigarette tax up to a maximum rate of 40 cents per pack. It also provides that any locality that imposes such tax at a rate higher than 40 cents per pack may not increase such rate. The provisions related to the cigarette tax have a delayed effective date of July 1, 2021. Under current law, only certain counties may impose a cigarette tax, and cities and towns may impose such tax with no limit on the rate. The bill authorizes any county to impose a food and beverage tax of up to six percent and eliminates the requirement that a county hold a referendum before imposing such tax. Under current law, all counties may impose the tax after a referendum but the rate may not exceed four percent. This bill is identical to SB 588.

Local taxing authority. Equalizes city taxing authorityand county taxing authority by granting a county the same authority to imposetaxes on cigarettes, admissions, transient room rentals, meals, and travelcampgrounds without limitation on the rate that may be imposed.The bill authorizes all counties to impose an admissions taxwith no restriction on the rate. Under current law, only certain counties mayimpose an admissions tax, and the rate generally is capped at 10 percent. Undercurrent law, all cities may impose the tax with no restriction on the rate.The bill authorizes all counties to impose a transientoccupancy tax with no limitation on the rate that may be imposed. Under currentlaw, counties generally are limited to a maximum rate of two percent, althoughcertain counties may impose the tax at higher rates. The bill provides that,unless otherwise provided by law prior to January 1, 2020, the revenue from atax rate above two percent up to five percent is restricted to tourism purposesand tax rates above five percent may be used as general revenue.The bill authorizes all counties to impose a cigarette taxwith no restriction on the rate. Under current law, only Arlington County andFairfax County may impose a cigarette tax, and the rate is limited to 30 centsper pack. Under current law, all cities may impose the tax with no restrictionon the rate.The bill eliminates the limit of four percent on a county foodand beverage tax (commonly referred to as the meals tax). Under current law,such limit applies to counties but not cities. The bill also removes therequirement that a county hold a referendum before imposing a meals tax. Undercurrent law, such requirement applies to counties but not cities.