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2026 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Thomas
Legislative Workgroup on Property Tax Exemptions

Item 1 #7h

Item 1 #7h

First Year - FY2027 Second Year - FY2028
Legislative Department
General Assembly of Virginia FY2027 $10,000 FY2028 $10,000 GF

Language
Page 3, line 5, strike "$67,511,846" and insert "$67,521,846".
Page 3, line 5, strike "$67,511,846" and insert "$67,521,846".

Page 14, after line 21, insert:

"X.1. The Chairs of the House Appropriations and Senate Finance and Appropriations Committees shall each appoint four members from their respective committees to a joint subcommittee to review the cost of mandatory property tax exemptions for disabled veterans and their spouses and make recommendations to their respective committees to ensure the sustainability of the exemption programs, reduce the fiscal stress these exemptions are having on local governments, and preserve localities' ability to provide local services.

2. The Joint Subcommittee shall review the cost of the program since 2011, detail the reasons behind the growth, explain the fiscal implications for local governments, and consider options for state assistance to localities in mitigating the stresses on local revenues.

3. The Subcommittee shall submit its findings and recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than October 15, 2026."



Explanation

(This amendment provides $10,000 each year from the general fund to establish a joint subcommittee of the General Assembly to analyze the rising cost of mandatory property tax exemptions for disabled veterans and their families, which has increased from $8 million in 2011 to an estimated $300 million in 2025, and make recommendations to address the loss of local revenue. Real property tax revenues are the mainstay of local government budgets, and state mandates that reduce these revenues place pressure on other local government budget priorities, such as property tax relief for the elderly and disabled, funding for K-12 education, and the appropriate level of taxation for each locality. This is a placeholder amendment until the final fiscal impact is known.)