Virginia 2024 Regular Session Status: Enacted

SB 709 — Assessment of omitted taxes; erroneous payments.

Last action — Acts of Assembly Chapter text (CHAP0128)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House of Delegates
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 19, 2024. Enacted.

Signed by Governor Glenn Youngkin (Republican) on March 20, 2024.

Prognosis

Likely to advance 72% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Assessment of omitted taxes; erroneous payments. Provides that any retail sales tax payment erroneously remitted by a taxpayer to the Department of Taxation shall be applied to the taxpayer's delinquent use tax accounts. The taxpayer must provide evidence of the erroneous sales tax collected and remitted in each transaction. The provisions of this bill do not apply in the case of (i) the taxpayer already applying for and receiving the relief described in this bill or (ii) a false or fraudulent action by the taxpayer with the intention of evading the payment of the tax. Further, the taxpayer must show that the erroneous retail sales tax has been refunded to the purchaser or credited to the purchaser's account prior to receiving a refund from Department of Taxation. This bill is identical to HB 1508.

Bill Text

What changed in the latest version

53 added · 52 removed

Plain-language change summary

The amended bill SB 709 clarifies the assessment process for unpaid taxes in Virginia. It emphasizes that if a taxpayer fails to file or pay taxes, the Tax Commissioner can impose penalties, with specific amounts detailed, including a five percent penalty for non-payment and a 100 percent penalty if fraud is involved. Additionally, it establishes a clear timeframe for tax assessments, making it easier for both taxpayers and the Department of Taxation to understand their rights and responsibilities. This change is significant because it aims to enhance compliance and ensure fairness in tax collection.

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SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY –– CHAPTER E An Act to amend and reenact § 58.1-1812 of the Code of Virginia, relating to assessment of omitted taxes;
VIRGINIA ACTS OF ASSEMBLY -- 2024 SESSION CHAPTER 128 An Act to amend and reenact § 58.1-1812 of the Code of Virginia, relating to assessment of omitted taxes;
R O [S 709] Approved L L Be it enacted by the General Assembly of Virginia:
[S 709] Approved March 20, 2024 Be it enacted by the General Assembly of Virginia:
E § 58.1-1812.
§ 58.1-1812.
D in full any proper tax, he shall assess the taxes prescribed by law, adding to the taxes so assessed the penalty prescribed by law, if any, for the failure to file a return (if a return was required by law but not filed within the time prescribed by law) and the penalty or penalties prescribed by law for the failure to pay the taxes and penalty or penalties within the time prescribed by law.
A.
If no penalty is so prescribed, he shall assess a penalty of five percent of the tax due, or if the failure to pay in full was fraudulent, a penalty of 100 percent of the tax due.
If the Tax Commissioner ascertains that any person has failed to make a proper return or to pay in full any proper tax, he shall assess the taxes prescribed by law, adding to the taxes so assessed the penalty prescribed by law, if any, for the failure to file a return (if a return was required by law but not filed within the time prescribed by law) and the penalty or penalties prescribed by law for the failure to he shall assess a penalty of five percent of the tax due, or if the failure to pay in full was fraudulent, a penalty of 100 percent of the tax due.
In addition thereto, interest on the outstanding tax and penalty shall be charged at the rate established under § 58.1-15 for the period between the due date anB the date of full payment.
In addition thereto, interest on the outstanding tax and penalty shall be charged at the rate established under § 58.1-15 for the period between the due date and the date of full payment.
0 return was filed, whether such return was filed on or after the date prescribed, and no proceedEng inthe court without assessment shall be begun for the collection of such tax after the expiration of such period.
Except as otherwise provided by law, the amount of tax shall be assessed within three years after the return was filed, whether such return was filed on or after the date prescribed, and no proceeding in court without assessment shall be begun for the collection of such tax after the expiration of such period.
Upon such assessment, the Department of Taxation shall send a bill therefor to the taxpayer and the date of such bill.
Upon such assessment, the Department of Taxation shall send a bill therefor to the taxpayer and the taxes, penalties, and interest shall be remitted to the Department of Taxation within 30 days from the date of such bill.
If the tax is not remitted to the Department within 30 days from the date of such payment.terest at the rate provided herein shall accrue thereon from the date of such assessment until As used in this section, "erroneous refund" means any refund of tax resulting solely from an error by the Department of Taxation that results in the taxpayer receiving a refund to which the taxpayer is not entitled.
If the tax is not remitted to the Department within 30 days from the date of such bill, interest at the rate provided herein shall accrue thereon from the date of such assessment until payment.
As used in this section, "erroneous refund" means any refund of tax resulting solely from an error by the Department of Taxation that results in the taxpayer receiving a refund to which the taxpayer is not entitled.
Upon the application of a taxpayer, if the Department determines that a taxpayer has erroneously remitted retail sales tax payments to the Department with respect to a transaction under § 58.1-610 and for which the Department has made a use tax assessment, and such taxpayer has not so requested, the Department shall apply the erroneously remitted retail sales tax proceeds to a use tax assessment of the erroneously paid retail sales tax amount collected and remitted in each transaction.
Upon the application of a taxpayer, if the Department determines that a taxpayer has erroneously remitted retail sales tax payments to the Department with respect to a transaction under § 58.1-610 and for which the Department has made a use tax assessment, and such taxpayer has not so requested, the Department shall apply the erroneously remitted retail sales tax proceeds to a use tax assessment of the taxpayer for the same transactions.
To be eligible, the taxpayer shall provide evidence of the erroneously paid retail sales tax amount collected and remitted in each transaction.
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Action History

  1. Acts of Assembly Chapter text (CHAP0128)

  2. Approved by Governor-Chapter 128 (effective 7/1/24)

  3. Governor's Action Deadline 11:59 p.m., April 8, 2024

  4. Enrolled Bill Communicated to Governor on March 11, 2024

  5. Impact statement from TAX (SB709ER)

  6. Signed by President

  7. Signed by Speaker

  8. Bill text as passed Senate and House (SB709ER)

  9. Enrolled

  10. VOTE: Block Vote Passage (99-Y 0-N)

  11. Passed House BLOCK VOTE (99-Y -0-N)

  12. Read third time

  13. Read second time

  14. Reported from Finance (22-Y 0-N)

  15. Impact statement from TAX (SB709S1)

  16. Referred to Committee on Finance

  17. Read first time

  18. Placed on Calendar

  19. Passed Senate (40-Y 0-N)

  20. Constitutional reading dispensed (40-Y 0-N)

  21. Engrossed by Senate - committee substitute SB709S1

  22. Committee substitute agreed to 24107079D-S1

  23. Reading of substitute waived

  24. Read second time

  25. Constitutional reading dispensed (40-Y 0-N)

  26. Committee substitute printed 24107079D-S1

  27. Reported from Finance and Appropriations with substitute (15-Y 0-N)

  28. Senate subcommittee amendments and substitutes offered

  29. Senate committee, floor amendments and substitutes offered

  30. Impact statement from TAX (SB709)

  31. Referred to Committee on Finance and Appropriations

  32. Presented and ordered printed 24105265D

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 146 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (146)

146 members have not signed on to this bill.

Show all 146 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

VOTE: Block Vote Passage (99-Y 0-N)

Passed 98 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 98001
Total 98001
% of votes cast 99%0%0%1%
How each member voted (99)
Member Party Vote
Adele Y. McClure — Yea
Alex Q. Askew — Yea
Alfonso H. Lopez — Yea
Amy J. Laufer — Yea
Anne Ferrell Tata — Yea
Arnold, Jonathan, E. P. — Yea
Atoosa R. Reaser — Yea
Batten, Amanda E. — Yea
Betsy B. Carr — Yea
Bill Wiley — Yea
Bonita G. Anthony — Yea
Briana D. Sewell — Yea
Bulova, David L. — Yea
C.E. Cliff Hayes, Jr. — Yea
Charniele L. Herring — Yea
Chris S. Runion — Yea
Convirs-Fowler, Kelly K. — Yea
Cordoza, A.C. — Yea
Coyner, Carrie E. — Yea
Dan I. Helmer — Yea
David A. Reid — Yea
Debra D. Gardner — Yea
Delores L. McQuinn — Yea
Delores Oates — Yea
Earley, Mark L., Jr. — Yea
Elizabeth B. Bennett-Parker — Yea
Ellen H. McLaughlin — Yea
Ennis, N. Baxter — Yea
Eric Phillips — Yea
Eric R. Zehr — Yea
Fowler, Hyland F."Buddy," Jr. — Yea
Freitas, Nicholas J. — Yea
Gilbert, C. Todd — Yea
Green, W. Chad — Yea
H. Otto Wachsmann, Jr. — Yea
Higgins, Geary — Yea
Holly M. Seibold — Yea
Irene Shin — Yea
Israel D. O'Quinn — Yea
Jackie H. Glass — Yea
James A. "Jay" Leftwich — Yea
James W. Morefield — Yea
Jason S. Ballard — Yea
Jeion A. Ward — Yea
Joseph P. McNamara — Yea
Joshua E. Thomas — Yea
Joshua G. Cole — Yea
Kannan Srinivasan — Yea
Karen Keys-Gamarra — Yea
Karrie K. Delaney — Yea
Kathy K.L. Tran — Yea
Katrina Callsen — Yea
Kent, Hillary Pugh — Yea
Knight, Barry D. — Yea
Laura Jane Cohen — Yea
LeVere Bolling, Destiny — Yea
Lovejoy, Ian T. — Yea
Luke E. Torian — Yea
M. Keith Hodges — Yea
Maldonado, Michelle Lopes — Yea
Marcia S. "Cia" Price — Yea
Marcus B. Simon — Yea
Marshall, Daniel W., III — Yea
Marty Martinez — Yea
Michael B. Feggans — Yea
Michael J. Jones — Yea
Michael J. Webert — Yea
Mike A. Cherry — Yea
Milde, Paul V. — Yea
Mundon King, Candi — Yea
Nadarius E. Clark — Yea
Obenshain, Chris — Yea
Orrock, Robert D., Sr. — Yea
Owen, David — Yea
Patrick A. Hope — Yea
Paul E. Krizek — Yea
Phil M. Hernandez — Yea
Phillip A. Scott — Yea
R. Lee Ware — Yea
Rae Cousins — Yea
Richard C. "Rip" Sullivan, Jr. — Yea
Robert S. Bloxom, Jr. — Yea
Rodney T. Willett — Yea
Rozia A. Henson, Jr. — Yea
Sam Rasoul — Yea
Scott A. Wyatt — Yea
Shelly A. Simonds — Yea
Sickles, Mark D. — Yea
Taylor, Kim A. — Not Voting
Terry G. Kilgore — Yea
Terry L. Austin — Yea
Thomas A. Garrett, Jr. — Yea
Thomas C. Wright, Jr. — Yea
Timothy P. Griffin — Yea
Tony O. Wilt — Yea
Vivian E. Watts — Yea
Wendell S. Walker — Yea
Will Davis — Yea
Wren M. Williams — Yea

Official roll call →

Reported from Finance (22-Y 0-N)

Passed 22 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 22000
Total 22000
% of votes cast 100%0%0%0%
How each member voted (22)
Member Party Vote
Amy J. Laufer — Yea
Bonita G. Anthony — Yea
Chris S. Runion — Yea
Debra D. Gardner — Yea
Elizabeth B. Bennett-Parker — Yea
Fowler, Hyland F."Buddy," Jr. — Yea
Freitas, Nicholas J. — Yea
Joseph P. McNamara — Yea
Karen Keys-Gamarra — Yea
Kathy K.L. Tran — Yea
Katrina Callsen — Yea
Kent, Hillary Pugh — Yea
Mundon King, Candi — Yea
Orrock, Robert D., Sr. — Yea
Phil M. Hernandez — Yea
R. Lee Ware — Yea
Richard C. "Rip" Sullivan, Jr. — Yea
Shelly A. Simonds — Yea
Thomas A. Garrett, Jr. — Yea
Vivian E. Watts — Yea
Wendell S. Walker — Yea
Will Davis — Yea

Official roll call →

Passed Senate (40-Y 0-N)

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 40000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Aaron R. Rouse — Yea
Angelia Williams Graves — Yea
Barbara A. Favola — Yea
Bill DeSteph — Yea
Bryce E. Reeves — Yea
Carroll Foy, Jennifer D. — Yea
Christie New Craig — Yea
Christopher T. Head — Yea
Danica A. Roem — Yea
David R. Suetterlein — Yea
David W. Marsden — Yea
Ebbin, Adam P. — Yea
Emily M. Jordan — Yea
Glen H. Sturtevant, Jr. — Yea
Hashmi, Ghazala F. — Yea
J.D. "Danny" Diggs — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
L. Louise Lucas — Yea
Lamont Bagby — Yea
Lashrecse D. Aird — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
Mark J. Peake — Yea
McGuire, John J., III — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Russet Perry — Yea
Ryan T. McDougle — Yea
Saddam Azlan Salim — Yea
Schuyler T. VanValkenburg — Yea
Scott A. Surovell — Yea
Stella G. Pekarsky — Yea
Subramanyam, Suhas — Yea
T. Travis Hackworth — Yea
Tammy Brankley Mulchi — Yea
Tara A. Durant — Yea
Timmy French — Yea
Todd E. Pillion — Yea
William M. Stanley, Jr. — Yea

Official roll call →

Constitutional reading dispensed (40-Y 0-N)

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 40000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Aaron R. Rouse — Yea
Angelia Williams Graves — Yea
Barbara A. Favola — Yea
Bill DeSteph — Yea
Bryce E. Reeves — Yea
Carroll Foy, Jennifer D. — Yea
Christie New Craig — Yea
Christopher T. Head — Yea
Danica A. Roem — Yea
David R. Suetterlein — Yea
David W. Marsden — Yea
Ebbin, Adam P. — Yea
Emily M. Jordan — Yea
Glen H. Sturtevant, Jr. — Yea
Hashmi, Ghazala F. — Yea
J.D. "Danny" Diggs — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
L. Louise Lucas — Yea
Lamont Bagby — Yea
Lashrecse D. Aird — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
Mark J. Peake — Yea
McGuire, John J., III — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Russet Perry — Yea
Ryan T. McDougle — Yea
Saddam Azlan Salim — Yea
Schuyler T. VanValkenburg — Yea
Scott A. Surovell — Yea
Stella G. Pekarsky — Yea
Subramanyam, Suhas — Yea
T. Travis Hackworth — Yea
Tammy Brankley Mulchi — Yea
Tara A. Durant — Yea
Timmy French — Yea
Todd E. Pillion — Yea
William M. Stanley, Jr. — Yea

Official roll call →

Constitutional reading dispensed (40-Y 0-N)

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 40000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Aaron R. Rouse — Yea
Angelia Williams Graves — Yea
Barbara A. Favola — Yea
Bill DeSteph — Yea
Bryce E. Reeves — Yea
Carroll Foy, Jennifer D. — Yea
Christie New Craig — Yea
Christopher T. Head — Yea
Danica A. Roem — Yea
David R. Suetterlein — Yea
David W. Marsden — Yea
Ebbin, Adam P. — Yea
Emily M. Jordan — Yea
Glen H. Sturtevant, Jr. — Yea
Hashmi, Ghazala F. — Yea
J.D. "Danny" Diggs — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
L. Louise Lucas — Yea
Lamont Bagby — Yea
Lashrecse D. Aird — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
Mark J. Peake — Yea
McGuire, John J., III — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Russet Perry — Yea
Ryan T. McDougle — Yea
Saddam Azlan Salim — Yea
Schuyler T. VanValkenburg — Yea
Scott A. Surovell — Yea
Stella G. Pekarsky — Yea
Subramanyam, Suhas — Yea
T. Travis Hackworth — Yea
Tammy Brankley Mulchi — Yea
Tara A. Durant — Yea
Timmy French — Yea
Todd E. Pillion — Yea
William M. Stanley, Jr. — Yea

Official roll call →

Reported from Finance and Appropriations with substitute (15-Y 0-N)

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 15000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Barbara A. Favola — Yea
Bryce E. Reeves — Yea
David W. Marsden — Yea
Ebbin, Adam P. — Yea
Hashmi, Ghazala F. — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
L. Louise Lucas — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Ryan T. McDougle — Yea
Scott A. Surovell — Yea
Todd E. Pillion — Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

What does SB 709 do?
Assessment of omitted taxes; erroneous payments. Provides that any retail sales tax payment erroneously remitted by a taxpayer to the Department of Taxation shall be applied to the taxpayer's delinquent use tax accounts. The taxpayer must provide evidence of the erroneous sales tax collected and remitted in each transaction. The provisions of this bill do not apply in the case of (i) the taxpayer already applying for and receiving the relief described in this bill or (ii) a false or fraudulent action by the taxpayer with the intention of evading the payment of the tax. Further, the taxpayer must show that the erroneous retail sales tax has been refunded to the purchaser or credited to the purchaser's account prior to receiving a refund from Department of Taxation. This bill is identical to HB 1508.
Who sponsors SB 709?
SB 709 is sponsored by Mark D. Obenshain and Chris S. Runion.
What is the current status of SB 709?
This bill has been enacted into law. Introduced January 19, 2024. Enacted.
Where can I track SB 709?
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