RD87 - 2012 Executive Summary of the Joint Subcommittee to Evaluate Tax Preferences


    Executive Summary:
    The Joint Subcommittee to Evaluate Tax Preferences was established pursuant to Chapter 777 of the 2012 Acts of Assembly to "oversee the evaluation of Virginia's tax preferences, including but not limited to tax credits, deductions, subtractions, exemptions, and exclusions" (§ 30-336 of the Code of Virginia). The creation of the joint subcommittee was a recommendation of the Joint Legislative Audit and Review Commission (JLARC) in its review of the effectiveness of Virginia's tax preferences [see Senate Document No. 4 (2012)].

    The Joint Subcommittee held two organizational meetings during the 2012 Interim. The joint subcommittee elected Senator Jeffrey L. McWaters chairman, and Delegate Harry R. Purkey as vice-chairman.

    During the course of the two meetings, the joint subcommittee gathered background information concerning tax preferences in Virginia. This included an overview from JLARC staff concerning the study that recommended the joint subcommittee's creation, and update from the Department of Taxation regarding the information concerning tax preferences that it currently collects and disseminates, and review by staff of the joint subcommittee of its legislative mandate and purpose.

    In preparing for more in-depth work to be conducted during the 2013 Interim, the joint subcommittee decided that it will begin its 2013 review of tax preferences with a focus on those with 2015 sunsets, as well as those are costliest to the state. The joint subcommittee will consider dividing into two subcommittees or workgroups to separately study tax credits and sales tax exemptions, and will additionally consider assembling a technical advisory group to advise its work, as authorized by § 30-338.

    The joint subcommittee created a website to provide a site for the dissemination of meeting agendas and materials, as well as to serve as a repository for other resources related to the study of tax preferences.