The Revenue Resources and Economic Commission, first created in 1968 to study and report on various proposals affecting the fiscal status of the Commonwealth, became a permanent Commission in 1974. The Commission's charge is to study the tax structure and sources of revenue of the Commonwealth and its local governments, especially the division of sources of revenue between the State and the localities, and to recommend reforms.

During 1975, the Commission's staff prepared and published its biennial report, "Fiscal Prospects and Alternatives, 1976," which examines the State and local fiscal outlook and various alternative methods of raising additional revenue, and contains specific study of many areas in need of reform. In addition, the Commission has received two in-depth studies from consultants: "A Comparative Analysis of Public Utility Taxation in Virginia," prepared by William F. Hellmuth, Larry G. Beall and George W. Jennings, and "Transportation Taxation in Virginia: an Interstate and Intermodal Analysis," prepared by Charles J. Gallagher and George E. Hoffer. The Commission also heard testimony from groups interested in the two consultants' reports. Many of the issues raised and discussed in this wealth of material supplied by the staff and interested parties are too complicated to permit the Commission to make recommendations in this report, and many subjects have been reserved for further study. Moreover, because of the hazy economic picture, the Commission has been reluctant to recommend reforms which would necessarily cost the State or local governments large amounts of revenue.

The Commission's recommendations appear in the beginning of the report. The following sections are: I. Analysis of the fiscal outlook for the biennium; II. Explanation of recommendations for changes in local taxation; III. Explanation of proposed State tax changes; and IV. Alternative tax proposals if increased revenue is needed.