Authority: §§ 58.1-200, 58.1-202, and 58.1-213, Code of Virginia.

A. To defray the costs of administration for voluntary contributions made on individual income tax returns for taxable years beginning on or after January 1, 2003, the Department of Taxation may retain up to five percent of the contributions made to each organization, not to exceed a total of $50,000 from all organizations in any taxable year.

B. The Department is hereby authorized to request and receive a treasury loan to fund the necessary start-up costs associated with the implementation of a sales and use tax modification or other state or local tax imposed pursuant to Chapter 766, 2013 Acts of Assembly. The treasury loan shall be repaid for these costs from the tax revenues. The Department shall also retain sufficient revenues to recover its costs incurred administering these taxes.

C. Notwithstanding the provisions of §§ 2.2-507 and 2.2-510, when the Tax Commissioner determines that an issue may have a major impact on tax policies, revenues or expenditures, he may request that the Attorney General appoint special counsel to render such assistance or representation as needed. The compensation for such special counsel shall be paid out of the funds appropriated for the administration of the Department of Taxation.

D. The Department of Taxation is required to provide, at the beginning of an audit, detailed information on the audit process and tax policies that are being examined. Furthermore, the Department shall compile and make available on their website a list of common issues which are identified in a large number of audits.

E. Out of this appropriation, $131,000,000 the first year from the general fund is provided for costs associated with the replacement of the Department of Taxation's (TAX) Integrated Revenue Management System (IRMS). This appropriation is contingent on TAX including in its contract with the selected vendor an electronic filing system for individual income tax that can be used by all Virginians. The Director, Department of Planning and Budget shall unallot any amounts of this appropriation not needed to perform required actions necessary for work prior to, and in support of, the procurement. The remaining funding may be allotted at such time when TAX demonstrates in its final contractual terms for the replacement of IRMS that it contains a provision for an electronic filing system for individual income tax that can be used by all Virginians. After the contingency is met the Director, Department of Planning and Budget shall allot the amount that is needed in each fiscal year based on a reasonable funding schedule provided by TAX for each fiscal year.  Any amounts remaining from the general fund appropriation identified in this paragraph that remain unspent at the end of any fiscal year shall be reappropriated in the next fiscal year until the project is completed. TAX shall report by September 1, of each year to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the current status of the IRMS replacement, the funding expended in the prior fiscal year, project milestones achieved in the prior fiscal year, and any potential concerns that may impact the project's timeline and success.