House Overwhelmingly Endorses Tax Relief for Farmers & Small Businesses

93 Delegates Vote to Repeal Death Tax

RICHMOND - The House of Delegates advanced tax relief for thousands of family owned businesses and farms today by endorsing Delegate Bob Tata s legislation to repeal Virginia s estate tax in 2007. The 93-7 vote sends a strong message of the bipartisan support this measure has generated this year. The bill (HB 40) will now be sent to the Senate of Virginia for their consideration.

The House Republican Caucus last summer endorsed full repeal of the death tax and helped lead the bi-partisan House effort. While the legislation has always had bi-partisan support, this year's vote was nearly unanimous.

Delegate Tata, having sponsored legislation to repeal the death tax since 2002, stated, "I introduced this bill first four years ago when I learned from local constituents that Virginia would continue to impose a death tax after the federal government repealed it. With so many other states having already begun the process of repealing their death taxes, the Commonwealth cannot afford to be left behind."

The federal government repealed the estate tax in 2001. HB 40 brings the Virginia estate tax law into conformity with the federal statute and with more than thirty other states that do not collect a state estate tax.

The death tax hits hardest family-owned businesses and family farmers who created a coalition of over 60 business, civic and preservation groups in 2003 to fight the levy, which can take as much as 16 percent of an estate s value in taxes. With minimal fiscal impact on the overall state budget, elimination of the estate tax will provide significant tax relief for family owned businesses and the agriculture community without negative impact on the delivery of services in Virginia.

Legislation (SB 504) is pending in the Senate of Virginia and being carried by Senator Tommy Norment of Williamsburg. It has the support of Republicans and Democrats.

Governor Tim Kaine has pledged to repeal the tax and is expected to sign the legislation should it reach his desk.