Classification of land and improvements for tax purposes; localities. Reclassifies improvements to real property as a separate class of real property and authorizes any locality to impose a real property tax on improvements to real property at a tax rate that is different than the rate applied to the land on which such improvements are located. Such rate may exceed, equal, or be less than the tax imposed upon the land on which the improvements are located.Under current law, such classification is allowed only for the Cities of Fairfax, Poquoson, Richmond, and Roanoke. For the Cities of Fairfax, Richmond, and Roanoke, the rate applied is required to be less than the rate applied to land under current law. The City of Poquoson is currently the only locality authorized to impose a rate in excess of the rate applied to land. The bill applies only to taxable years beginning on and after July 1, 2025.
Income tax; nonfamily adoption tax credit. Creates the nonfamily adoption tax credit as a $4,000 nonrefundable tax credit for taxable years 2025 through 2029 for an individual or married persons who, during the taxable year, finalize a legal nonfamily adoption as defined in the bill. The bill limits the aggregate amount of credits allowable to $5 million per taxable year with credits allocated by the Department of Taxation on a first-come, first-served basis.
Sales and use tax on services and digital personal property. Levies the retail sales and use tax on the following services: admissions; charges for recreation, fitness, or sports facilities; nonmedical personal services or counseling; dry cleaning and laundry services; companion animal care; residential home repair or maintenance, landscaping, or cleaning services when paid for directly by a resident or homeowner; vehicle and engine repair; repairs or alterations to tangible personal property; storage of tangible personal property; delivery or shipping services; travel, event, and aesthetic planning services; and digital services. Digital services are defined in the bill as the following: software application services, computer-related services, website hosting and design, data storage, and digital subscription services. The services taxed under the bill include any transaction for digital services where the purchaser or consumer of the service is a business but do not include any service otherwise exempt under law.The bill also imposes the retail sales and use tax on digital personal property, defined in the bill as a digital product delivered electronically that the purchaser owns or has the ability to continually access without having to pay an additional subscription or usage fee to the seller after paying the initial purchase price.Revenues generated by the taxes levied on services and digital personal property shall be allocated in the same manner as other sales and use taxes; however, revenues from the state portion of the sales and use tax that would be allocated to the general fund shall instead be allocated to school divisions as follows: (i) 60 percent shall be distributed to localities on the basis of school-age population and (ii) 40 percent shall be distributed to localities on the basis of the high-need student population in the locality. The bill clarifies that a high-need student population includes students who are (a) automatically certified for free school meals because of participation in social services programs, (b) participants in a program of special education, or (c) English language learners.The bill provides certain exemptions to the sales and use tax on services, including health care services that must be performed by a person licensed or certified by the Department of Health Professions, veterinary services, professional services, Internet access services, and services provided by a person who does not receive more than $2,500 per year in gross receipts for performance of such services. The bill exempts services purchased by a nonprofit organization and services purchased by a homeowners' association or by a landlord for the benefit of his tenant. The bill also repeals the service exemptions currently provided for the sale of custom programs and modification of prewritten programs.Finally, the bill exempts food purchased for human consumption and essential personal hygiene products from all state, local, and regional sales taxes on and after July 1, 2025. Under current law, food purchased for human consumption and essential personal hygiene products are subject only to the one percent local option sales tax.
Virginia taxable income; subtractions; volunteer firefighters and volunteer emergency medical services personnel. Provides a state income tax subtraction of $2,000 beginning in taxable year 2026 for bona fide volunteers who perform qualifying services, defined in the bill as volunteer firefighting and fire prevention services, emergency medical services, auxiliary police officer services, ambulance services, emergency rescue services, and all training and training-related activities required by law to perform such services.
Artificial Intelligence Transparency Act established. Requires developers of generative artificial intelligence systems made available in the Commonwealth to ensure that any generative artificial intelligence system that produces audio, images, text, or video content includes on such AI-generated content a clear and conspicuous disclosure that meets certain requirements specified in the bill. The bill also requires developers of generative artificial intelligence systems to implement reasonable procedures to prevent downstream use of such system without the required disclosures and requires any third-party licensee of a generative artificial intelligence system to also implement such procedures. The bill provides that a violation of the disclosure requirements constitutes a prohibited practice under the Virginia Consumer Protection Act. The bill allows the Attorney General to offer developers a right to cure noncompliance that is noticed by the Attorney General and provides that a person or entity claiming to be injured due to a violation of the disclosure requirements shall be entitled to initiate an action for monetary damages or equitable relief.
Directing the Speaker of the House of Delegates to order a study of the legal effects and consequences of a constitutional amendment enshrining a right to reproductive freedom. Directs the Speaker of the House of Delegates to order a study of the legal effects and consequences of a constitutional amendment enshrining a right to reproductive freedom, including whether the language of the proposed amendment would constitutionally protect abortion throughout all of pregnancy, create a constitutional right for the parents of a dead child to sell such child's body parts, and legally permit partial birth infanticide, born-alive murder, child pornography, sexual assault, and any other crime after complete extraction or expulsion from the mother so long as the umbilical cord is attached.
Juvenile and domestic relations district court; juvenile intake; school notification. Expands the offenses for which a juvenile and domestic relations district court intake officer, upon the filing of a petition alleging an offense was committed, is required to notify the superintendent of the school division in which the child who is the subject of the petition is enrolled or was enrolled at the time of the offense. The bill adds carjacking and sexual extortion to the list of offenses.
School boards; certain examinations to be made available to students who satisfy compulsory school attendance requirements. Requires school boards to make Advanced Placement (AP), Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT), and PreACT examinations available to any student whose parents satisfy the compulsory attendance requirements set forth in relevant law, including by having the student taught by a tutor or teacher of qualifications prescribed by the Board of Education and approved by the division superintendent.
Children's Ombudsman; powers and duties. Authorizes the Children's Ombudsman to take action on behalf of children for whom a report of abuse or neglect was made. Under current law, the Children's Ombudsman has the authority to take action on behalf of children receiving child-protective services, in foster care, or placed for adoption and children who may have died as a result of alleged abuse or neglect.
Child tax credit; Virginia adjusted gross income. Creates a one-time tax credit in taxable years 2025 through 2029 for taxpayers whose households include dependents younger than 12 years of age and whose family Virginia adjusted gross income, defined in the bill, does not exceed $100,000. Such credit shall be in an amount equal to $300 for each such dependent and only one credit may be claimed for each such dependent. The bill provides that if the taxpayer is a resident of the Commonwealth for the full taxable year, the credit is refundable. Otherwise, the credit is nonrefundable.
Photo speed monitoring devices; placement and operation by certain localities. Allows localities without a law-enforcement agency to place and operate photo speed monitoring devices. The bill requires such localities to authorize by ordinance officers of the law-enforcement agency with jurisdiction within such locality to issue the summons and to swear to or affirm the certificate stating that the information produced by such photo speed monitoring device shows evidence of a vehicle speed violation.
Public School Security Equipment Grant Act of 2013; eligible security equipment; School Safety Firearm Detection Software Pilot Program established. Establishes the School Safety Firearm Detection Software Pilot Program (the Pilot Program), to be administered as a part of the Public School Security Equipment Grant Act of 2013, for the purpose of enhancing security and firearm violence prevention measures in public schools in the Commonwealth by awarding grants to eligible school divisions for the purchase, installation or integration, maintenance, and operation of firearm detection software into security cameras in two Title 1 schools in each congressional district in the Commonwealth. The bill defines "firearm detection software" as any technology software or system provided by a vendor that (i) is headquartered in the Commonwealth, has at least 10 years of experience in providing school safety technology to educational institutions, and is a small business consisting of fewer than 100 employees and (ii) uses artificial intelligence to analyze video streams from surveillance cameras in real time for the detection of firearms and, upon detecting a firearm, immediately notifies local law enforcement, school security personnel, the school administration, and other appropriate public safety authorities. The bill amends provisions of the Public School Security Equipment Grant Act of 2013 as necessary for the integration of the Pilot Program, including by (a) expanding the definition of "security equipment" to include firearm detection software; (b) exempting from the match requirement, in addition to the Virginia School for the Deaf and the Blind as set forth in current law, any school division receiving a grant pursuant to the Pilot Program; (c) requiring the Department to give priority to eligible school divisions applying on behalf of Title 1 schools for grants under the Pilot Program such that grants are first awarded to school divisions and in an amount sufficient to support the purchase, installation or integration, maintenance, and operation of firearm detection software in two Title 1 schools in each congressional district; and (d) modifying and expanding application requirements, reporting requirements, and requirements relating to the development of certain guidelines, policies, and procedures to include the Pilot Program. The bill has an expiration date of July 1, 2028.
