Governor Ralph Northam enacted an urgent tax law Friday that will allow the deferred tax return and refund processing to begin soon.
WASHINGTON – Governor Ralph Northam enacted an urgent tax law Friday that will allow the deferred tax return and refund processing to begin soon.
The bill complies with state legislation to match the federal government's tax cut, but includes additional refunds for many taxpayers this fall and additional deductions on returns filed from next year , intended to offset almost all state tax increases due to federal legislation.
The Virginia Tax Department can now prepare its systems to process the 2018 returns, including those already filed in recent weeks. Returns are processed in the order of receipt.
"As you can imagine, we already have a significant backlog. As a result, repayment deadlines may be slower than in the past, "said Tax Commissioner Craig Burns.
The delays were due to a dispute within the General Assembly on the distribution of tax benefits and on the question of whether some of the additional revenue should be kept in the state budget for tax purposes. other priorities.
The final deal took into account the Republicans' urge to prevent any significant increases in state taxes due to federal tax cuts, but added some Democratic priorities of spreading more benefits from the changes. than those originally offered to those who earn less.
This means that new proposed expenses based on increased income have been eliminated from the budget plans both in the House and in the Senate. Both parties must reach an agreement by the end of the session of the General Assembly, in the week of Saturday.
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