The Virginia General Assembly stands adjourned until Monday, August 28 when both chambers will reconvene in Richmond at noon to address the Governor's amendments to legislation repealing Virginia's death tax, SB 5019 and HB 5019.

The amendments put forth by Governor Kaine preserve full repeal of Virginia's estate tax as it passed the General Assembly in late June. Legislators from both chambers and both parties have generally reacted positively to the Governor's amendments.

A number of the leading members of our coalition advocating repeal of the death tax have endorsed the Governor's amendments. The Governor's amendments ONLY impact provisions of the open space conservation easement tax credit program and leave intact full repeal of the death tax.

Specifically, among other changes to the open space program, the amendments increase the proposed cap on land conservation tax credits from $75 million per year to $100 million per year.

If the General Assembly accepts Governor Kaine's amendments to this legislation, the state death tax will be repealed effective July 1, 2007. Voting for the amendments is the quickest and surest way to provide full repeal of Virginia's death tax.

We appreciate the bi-partisan leadership of the Governor, House and Senate on this issue of importance to preserve the livelihood of Virginia's family farmers and small business owners.

We will provide additional updates as they become available, and we thank you for your continued support of efforts to repeal Virginia's death tax.

On August 3, a federal measure that addressed estate tax repeal, a minimum wage increase and business tax issues, dubbed the "trifecta", was defeated in the U.S. Senate. The measure would have exempted estates worth up to $5 million ($10 million for married couples) from the federal death tax. It applied a 15% tax rate to the value above that threshold up to $25 million, increasing to a 30% rate for the value above $25 million.

Also included in the measure were business tax breaks and an increase of the minimum wage, which would have eventually raised the national rate from $5.15 to $7.25 per hour.

Senate leaders fell three votes short of the 60 votes needed to end discussion and bring the measure to a vote on the floor, where it was expected to pass easily with a simple majority. Senate Majority Leader Bill Frist, who supports federal death tax repeal, voted against bringing-up the measure for a vote in a parliamentary maneuver that will allow him to readdress the measure later.

To learn more about efforts to repeal the federal death tax, click here.

GOP Bid On Wages, Estate Tax Is Blocked - Democrats Prevent Vote on Senate Bill

Washington Post, August 4, 2006

An initiative to repeal Washington State's death tax, I-920, will be on the November ballot. The Washington legislature recently passed new estate tax legislation and tied it to education funding.

"Death should not be a taxable event," said sponsor Dennis Falk of Fox Island, who predicted success at the polls. "The voters will turn out because this is a nonpartisan issue. It is an issue of fairness."

Estate tax repeal effort makes ballot

The Associated Press, August 3, 2006