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HJ 15

Income tax, state; Department of Taxation, et al., to study impact of repealing individual tax.

2026 Regular Session Introduced by Tim Griffin

Virginia study bill examines fiscal and economic impacts of eliminating the state's individual income tax, which currently generates over $10 billion in annual revenue.

Subcommittee recommends continuing to (Voice Vote)
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Bill Summary · HJ 15

Legislative bill overview

HJ 15 directs Virginia's Department of Taxation and relevant state agencies to conduct a comprehensive study on the fiscal, economic, and social impacts of repealing the state's individual income tax. The bill does not enact the repeal itself, but rather establishes a formal investigation into what such a policy change would entail, including how the state would replace lost revenue and who would be affected.

Why is this important

Virginia's individual income tax generates approximately 40% of the state's general fund revenue—roughly $10+ billion annually. A repeal would represent one of the most significant tax policy changes in Virginia's modern history, fundamentally altering state finances, public services funding, and tax burden distribution. The study's findings could inform major legislative debates about tax structure and government revenue sources.

Potential points of contention

  • Revenue replacement mechanism: The study must identify how Virginia would replace $10+ billion in lost annual revenue—whether through increased sales tax, corporate tax, other levies, or spending cuts—each option carries different distributional consequences
  • Regressivity concerns: Eliminating income tax and replacing it with consumption-based taxes would likely shift the burden to lower and middle-income Virginians, as sales taxes consume a higher percentage of lower earners' income
  • Interstate competitiveness claims: Proponents argue no income tax attracts businesses and residents; opponents contend it may reduce funding for education, infrastructure, and services that actually drive competitiveness

Compiled from official sources — confirm details with the bill’s official record.

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