93 Delegates Vote to Repeal Death Tax

RICHMOND The House of Delegates advanced tax relief for thousands of family owned businesses and farms Thursday 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 bipartisan support, this year's vote was nearly unanimous.

Follow this link to read more.

Please Thank Your Delegate for Voting to Repeal the Death Tax

Please take the time to thank your delegate for voting favorably on HB 40, the legislation that fully repeals Virginia's Death Tax. Please let your delegate know that you appreciate his or her efforts in protecting small businesses and family farms. To find out who your delegate is, and to send an email, visit this page.

And Urge Your Senators to Support Repeal Next Week

The Senate Finance Committee meets Tuesday and Wednesday of next week at 8:30 a.m. in Senate Room B of the General Assembly Building. We are NOT sure if SB 504 introduced by Senator Norment will be on the docket. When the bills are placed on the docket we will alert you by email. Over the weekend and Monday, we urge you to contact members of the Senate and encourage their support to repeal the death tax.

To contact your Senator to encourage them to repeal the death tax, follow this link.

NFIB Day at the Capitol

The NFIB Wednesday had around 50 members working the halls of the General Assembly urging members to support repeal of the death tax in the Senate and House. We'd like to thank them for their dedication to this effort - click here.

President Bush: Make repeal of the death tax permanent

In this week's State of the Union address, President Bush urged Congress to make existing tax cuts, including federal repeal of the death tax, permanent. A bi-partisan majority of members of the House and Senate continue to work towards permanent repeal of the federal death tax. We are hopeful that this year the logjam will be broken by common sense members of both parties working to bring this issue to conclusion for small business owners and family farmers nationwide. We will keep you posted.

Governor Kaine of Virginia, who gave the Democrat response to the President, had just the day before reiterated his support for full repeal of the death tax in Virginia. We appreciate President Bush's and Governor Kaine's attention to this issue.

Notable Remarks

"We're already seeing Virginians move their domiciles to other states because of the estate tax policy here," Kaine said. Then he illustrated his point with a hockey allegory.
"It's as Wayne Gretzky says, `You don't skate to where the puck is, you skate to where it's going.'"

--Governor Tim Kaine

Associate Press, Panel OK's estate tax repeal, sales tax holidays,
By Bob Lewis, 1/30/2006

Click here to read the article

[On eliminating the death tax]:

"There's a time and a place for everything, and I think the time is right for it to pass," Chichester said. "We can afford it, and it's been on our front burner for a long time. It's just the fair thing to do. People who accumulate wealth have their own farms and assets they want to pass on to their families."

--Senator John Chichester

The Virginian-Pilot, Measures would give breaks for school supplies, inheritances
By Warren Fiske and Christina Nuckols, 1/29/2006

Click here to read the article

In The News

House opts to repeal estate tax on a 93-7 vote
Michael Sluss
Roanoke Times 2/3/2006

Legislation that would repeal Virginia's inheritance tax on large estates passed the House of Delegates overwhelmingly on Thursday, and appears likely to become law. Click here to read more...

It's time for Virginia to bump off the death tax--once and for all
Joe Wilson, Op-Ed
Free Lance-Star 2/2/2006

VIRGINIA'S legislature has a remarkable opportunity this session. With a governor in office now supporting full repeal of the state's death tax, legislators can make Virginia a better business state by driving a stake through this harmful double tax once and for all. Click here for more...

Death Tax
Michael Hardy
Richmond Times-Dispatch 2/2/2006

On another issue, the House overwhelmingly supported a measure to repeal the state's tax on estates over $2 million.

Del. Robert Tata, R-Virginia Beach, said the elimination of the "death tax" would benefit people who inherit small businesses, farms or real estate.

"Thirty-four other states have eliminated it, and even Maryland is considering it," Tata said in an interview.

Existing law hinders job creation, he said, and forces the exodus of some wealthy individuals from Virginia. "It's an onerous and unfair tax" on small-business owners and farmers, he said.

Kaine has indicated support for the measure. It was vetoed by his predecessor, Gov. Mark R. Warner, in 2003. If it becomes law, it would affect the estates of those who die on Jan. 1, 2007, or later.

Current Death Tax Repeal Legislation

HB 40 Estate tax; conformity of state and federal statutes.
Robert Tata
Status:
02/02/06 House: VOTE: PASSAGE (93-Y 7-N)
02/02/06 House: Communicated to Senate

SB 504 Estate Tax
Thomas K. Norment, Jr.
Full text:
01/11/06 Senate: Prefiled and ordered printed; offered 01/11/06 067012780
Status:
1/11/2006 Senate: Referred to Committee on Finance

Virginians for Death Tax Repeal Website

The Virginians for Death Tax Repeal website has been updated. There is a new feature that will help supporters of repeal contact their legislators to voice their support for full repeal of Virginia's Death Tax. Visit www.deathtaxrepeal.com today to check out the new feature.

Visit our updated website to learn more about how the Death Tax impacts family farmers, business owners and economic growth, visit www.deathtaxrepeal.com