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Bill

HB 1970

Tax exempt property; nonprofit institutions of learning, provisions are declaratory of existing law.

2025 Regular Session Introduced by Vivian Watts

Virginia law declares that existing tax exemptions for nonprofit educational institutions are statutorily authorized, providing legal certainty to schools and universities.

Acts of Assembly Chapter text (CHAP0645)
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Bill Summary · HB 1970

Legislative bill overview

HB 1970 clarifies and codifies existing Virginia law regarding tax-exempt status for nonprofit institutions of learning. The bill declares that current practices and interpretations of tax exemption for educational nonprofits are consistent with existing statutes, essentially formalizing what courts and tax administrators have already been treating as law.

Why is this important

This bill provides legal certainty to nonprofit educational institutions by explicitly confirming their tax-exempt status in statute rather than leaving it dependent on administrative interpretation or court precedent. It protects thousands of schools, universities, and educational organizations from potential challenges to their tax exemptions and ensures stable, predictable tax treatment.

Potential points of contention

  • Revenue implications: Tax exemptions represent foregone tax revenue for localities and the state; formalizing these exemptions removes any ambiguity that might have allowed future revenue recovery
  • Scope definition: The bill may not clarify what qualifies as a "nonprofit institution of learning," potentially leaving edge cases (online schools, for-profit entities with nonprofit arms, training programs) still subject to dispute
  • Competitive fairness: For-profit educational entities may argue they face unfair competition from tax-exempt nonprofits operating in similar spaces without tax obligations

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

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