Local rent stabilization authority; civil penalty. Provides that any locality may by ordinance adopt rent stabilization provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under rent stabilization may be required to give up to a two-month written notice of a rent increase and cannot increase the rent by more than the locality's rent stabilization allowance, described in the bill as the maximum amount a landlord can increase a tenant's rent during any 12-month period, in effect at the time of the increase. The bill sets such allowance as equal to the annual increase in the Consumer Price Index for the region in which the locality sits, states that such allowance is effective for a 12-month period beginning July 1 each year, and requires the locality to annually by June 1 publish such allowance on its website. Certain facilities, as outlined in the bill, are exempt from any such ordinance. The bill also requires such ordinance to provide a procedure by which a landlord may apply for an exemption from the rent stabilization provisions in situations where the net operating income generated by the rental facility has not been maintained due to escalating operating expenses or for other appropriate reasons as established by the locality. Finally, the bill provides that a locality may establish a civil penalty for failure to comply with the requirements set out in the ordinance that shall not exceed $2,500 per separate violation.
Alcoholic beverage control; special events; mixed beverage caterer's licenses. Expands the definition of "special event" used in the context of alcoholic beverage control to include events where a duly organized nonprofit corporation or association is engaged to be the concession operator entitled to the net proceeds from the sale of alcoholic beverages for such event. The bill also allows mixed beverage caterers' licenses to be granted to a person regularly engaged in the business of providing food and beverages to others for service at cultural or sporting events sponsored by a locality, destination marketing organization, or regional attractions marketing agency.
Income tax subtraction; military retirement benefits; uniformed services. Expands the military benefits income tax subtraction to include retirement income received for service in the uniformed services of the United States, which includes the United States Armed Forces, the commissioned corps of the National Oceanic and Atmospheric Administration, and the commissioned corps of the United States Public Health Service. Under current law, the subtraction is only allowed for military retirement income received for service in the United States Armed Forces.
Individual income tax; child tax credit. Creates a refundable individual income tax credit in taxable years 2027 through 2031 in an amount equal to that allowed for the corresponding federal child tax credit. Only one credit may be claimed for each qualifying child, as defined in the bill.
Individual income tax subtraction; long-term capital gains from sale of principal residence. Provides an individual income tax subtraction in taxable years 2025 through 2029 for income that is (i) taxed as a long-term capital gain for federal income tax purposes, (ii) attributable to the sale of property that served as the taxpayer's principal residence for at least two of the five years preceding such sale, and (iii) in excess of federal limitations only allowing an exclusion from gross income for up to $250,000, or $500,000, for joint filers, of gain from such a sale.
Crimes by gangs; definition of "predicate criminal act"; penalties. Adds the misdemeanor and felony offenses of carrying a concealed weapon and the misdemeanor offense of pointing, holding, or brandishing a firearm, air or gas operated weapon, or object similar in appearance to the definition of "predicate criminal act" related to prohibited criminal street gang participation.
Teacher licensure; three-year license to teach career and technical education or dual enrollment courses at public high schools. Requires the Board of Education to provide for the issuance of a three-year license to teach solely career and technical education courses or dual enrollment courses at public high schools in the Commonwealth to any individual who (i) is employed as an instructor by an institution of higher education that is accredited by a nationally recognized regional accreditation body, (ii) is teaching in the specific career and technical education or dual enrollment subject area at such institution in which the individual seeks to teach at a public high school, and (iii) complies with the requirements set forth in relevant law to complete study in child abuse recognition and intervention and certification or training in emergency first aid, cardiopulmonary resuscitation, and the use of automated external defibrillators. The bill requires the Board to require any such instructor to maintain continuous employment in such position at the institution of higher education as a condition of continued licensure.
Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for expenses incurred by a first-time homebuyer for the purchase of direct ownership in residential real property in an amount equal to five percent of the purchase price value of such property detailed on the purchase agreement up to $10,000. The bill requires that any credits be repaid in the event that the residential real property for which first-time homebuyer expenses were incurred and such credit was claimed is sold within three years from the purchase date of such property.
Virginia National Guard State Tuition Assistance Program; grants. Requires at least $50,000 of discretionary annual spending of Virginia National Guard State Tuition Assistance Program grant funds to be used for recruitment. Under current law, discretionary spending on recruitment from grant funds is capped at $50,000 per fiscal year.
Sales and use tax; dealer discount. Provides that the state retail sales and use tax dealer discount percentages allowed from the first three percent of such tax imposed shall be (i) eight percent for monthly taxable sales between $0 and $30,000; (ii) four percent for monthly taxable sales between $30,001 and $62,500; (iii) 1.2 percent for monthly taxable sales between $62,501 and $208,000; and (iv) 0.8 percent for monthly taxable sales of $208,001 and above. Under current statutory law, such dealer discount percentages are (a) four percent for monthly taxable sales between $0 and $62,500; (b) three percent for monthly taxable sales between $62,501 and $208,000; and (c) two percent for monthly taxable sales of $208,001 and above. However, superseding budgetary provisions (1) limit such dealer discount percentages to (A) 1.6 percent for monthly taxable sales between $0 and $62,500; (B) 1.2 percent for monthly taxable sales between $62,501 to $208,000; and (C) 0.8 percent for monthly taxable sales of $208,001 and above and (2) suspend the discount entirely for dealers subject to the electronic funds transfer requirement in relevant law.
Department of Veterans Services; benefit awareness and access; program. Establishes an outreach program to ensure military service members transitioning from military to civilian life, veterans, members of the Virginia National Guard, residents of the Commonwealth in the Armed Forces Reserves, and their family members can easily access federal, state, and local benefits and other programs and services available to them. The bill requires the outcomes of such program to be published in the annual report submitted to the Secretary of Veterans and Defense Affairs, the Governor, and the General Assembly.
Corporate income tax rate; reduction. Reduces the corporate income tax rate by 1.25 percent each taxable year from the current six percent rate until the rate equals 2.25 percent for taxable year 2028 and thereafter.
