Department of Taxation [161]
Secretarial Area: Finance
Operating Budget Summary
This table shows the Governor's proposed budget for the next two years and the agency's official budget for the previous six years.
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Biennium Fiscal Year Source GF NGF Total
2010-2012 2011 Chapter 2, 2012 Acts of Assembly $80,343,481 $79,095,742 $159,439,223
2010-2012 2012 Chapter 2, 2012 Acts of Assembly $79,265,900 $80,095,742 $159,361,642
2012-2014 2013 Chapter 1, 2014 Acts of Assembly $82,800,439 $13,534,945 $96,335,384
2012-2014 2014 Chapter 1, 2014 Acts of Assembly $85,577,236 $13,309,945 $98,887,181
2014-2016 2015 Chapter 732, 2016 Acts of Assembly $91,784,551 $13,570,577 $105,355,128
2014-2016 2016 Chapter 732, 2016 Acts of Assembly $92,555,814 $13,975,577 $106,531,391
2016-2018 2017 Chapter 780, 2016 Appropriation Act $96,907,268 $12,133,180 $109,040,448
2016-2018 2017 Base Budget $92,555,814 $13,975,577 $106,531,391
2016-2018 2017 Governor's Amendments $7,228,454 ($1,842,397) $5,386,057
2016-2018 2017 General Assembly Adjustments ($2,877,000) $0 ($2,877,000)
2016-2018 2018 Chapter 780, 2016 Appropriation Act $96,406,143 $12,134,342 $108,540,485
2016-2018 2018 Base Budget $92,555,814 $13,975,577 $106,531,391
2016-2018 2018 Governor's Amendments $4,269,329 ($1,841,235) $2,428,094
2016-2018 2018 General Assembly Adjustments ($419,000) $0 ($419,000)
Positions Budget Summary
Biennium Fiscal Year Source GF NGF Total
2010-2012 2011 Chapter 2, 2012 Acts of Assembly 955.50 37.00 992.50
2010-2012 2012 Chapter 2, 2012 Acts of Assembly 955.50 37.00 992.50
2012-2014 2013 Chapter 1, 2014 Acts of Assembly 890.00 37.00 927.00
2012-2014 2014 Chapter 1, 2014 Acts of Assembly 888.00 42.00 930.00
2014-2016 2015 Chapter 732, 2016 Acts of Assembly 893.00 47.00 940.00
2014-2016 2016 Chapter 732, 2016 Acts of Assembly 883.00 57.00 940.00
2016-2018 2017 Chapter 780, 2016 Appropriation Act 883.00 57.00 940.00
2016-2018 2017 Base Budget 883.00 57.00 940.00
2016-2018 2017 Governor's Amendments 0.00 0.00 0.00
2016-2018 2017 General Assembly Adjustments 0.00 0.00 0.00
2016-2018 2018 Chapter 780, 2016 Appropriation Act 883.00 57.00 940.00
2016-2018 2018 Base Budget 883.00 57.00 940.00
2016-2018 2018 Governor's Amendments 0.00 0.00 0.00
2016-2018 2018 General Assembly Adjustments 0.00 0.00 0.00
Operating Budget Addenda (in order of greatest impact)
•
Distribute savings to agency budgets Base Budget Adjustment
  Moves savings budgeted centrally in Paragraph A, Item 471.10, Chapter 665, 2015 Acts of Assembly from Central Appropriations to the individual budgets of state agencies.
 
  FY FY
General Fund ($2,221,827) ($2,221,827)
•
Adjust appropriation for centrally funded retirement rate changes Base Budget Adjustment
  Adjusts appropriation for changes in state employee retirement rates to 80 percent of the Virginia Retirement System Board certified rates budgeted in Central Appropriations, Item 467.H. of Chapter 665, 2015 Acts of Assembly. A companion adjustment provides funding to increase state employee retirement rates to 90 percent of the Virginia Retirement System Board certified rate.
 
  FY FY
General Fund $1,408,857 $1,408,857
Nongeneral Fund $82,281 $82,281
•
Reduce Contract Collector Fund appropriation Base Budget Adjustment
  Reduces appropriation to align appropriation with historic expenditure amounts.
 
  FY FY
Nongeneral Fund ($1,450,000) ($1,450,000)
•
Adjust appropriation for the centrally funded two percent salary increase for state employees Base Budget Adjustment
  Adjusts appropriation for the two percent salary increase for state employees budgeted in Central Appropriations, Item 467.P. of Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund $925,919 $925,919
Nongeneral Fund $62,581 $62,581
•
Adjust appropriation for the centrally funded compression pay adjustment for state employees Base Budget Adjustment
  Adjusts appropriation for the compression pay adjustment for state employees budgeted in Central Appropriations, Item 467.Q. of Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund $795,499 $795,499
Nongeneral Fund $53,764 $53,764
•
Adjust appropriation to accelerate the employer retirement contribution phase in schedule Base Budget Adjustment
  Adjusts appropriation for changes in employee retirement rates to 90 percent of the Virginia Retirement System Board certified rate budgeted in Central Appropriations, Item 467.U. of Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund $740,069 $740,069
Nongeneral Fund $49,129 $49,129
•
Reduce Court Debts Collection Fund appropriation Base Budget Adjustment
  Reduces appropriation to align appropriation with historic expenditure amounts.
 
  FY FY
Nongeneral Fund ($700,000) ($700,000)
•
Adjust appropriation for centrally funded health insurance costs Base Budget Adjustment
  Adjusts appropriation for the employer’s share of health insurance premiums budgeted in Central Appropriations, Item 467.G. of Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund $599,364 $599,364
Nongeneral Fund $27,528 $27,528
•
Remove funding for one-time mobile applications development costs Base Budget Adjustment
  Removes one-time general fund appropriation for development of mobile applications for tax field collectors and auditors.
 
  FY FY
General Fund $0 ($356,050)
•
Adjust appropriation for the centrally funded increase in internal service fund costs due to salary adjustments Base Budget Adjustment
  Adjusts appropriation to agencies to offset increases in internal service fund costs due to the salary and benefit adjustments in Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund $81,968 $81,968
Nongeneral Fund $1,987 $1,987
•
Adjust appropriation for centrally funded state employee other post employment benefit rate changes Base Budget Adjustment
  Adjusts appropriation for changes in state employee other post employment benefit rates budgeted in Central Appropriations, Item 467.K.3. of Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund $55,247 $55,247
Nongeneral Fund $3,224 $3,224
•
Adjust appropriation for changes in information technology costs Base Budget Adjustment
  Adjusts appropriation for the changes in information technology costs budgeted in Central Appropriations, Items 468.M. and 470.B. of Chapter 665, 2015 Acts of Assembly.
 
  FY FY
General Fund ($7,678) ($7,678)
Nongeneral Fund ($183) ($183)
•
Redistribute general fund appropriation for Compliance Audit and Tax Return Processing Base Budget Adjustment
  Transfers $2.5 million general fund appropriation from Compliance Audit to Tax Return Processing to align appropriation levels with historic expenditures.
•
Redistribute general fund appropriation for Compliance Collections and Tax Return Processing Base Budget Adjustment
  Transfers $1.2 million general fund appropriation from Compliance Collections to Tax Return Processing to align with historic expenditures.
•
Transfer appropriation for land assessor training to the proper service area Base Budget Adjustment
  Transfers $101,401 Special Fund appropriation for land assessor training from Valuation and Assessment Assistance for Localities to Training for Local Assessors. This amendment reflects the correct service area from which land assessor training costs are expended.
•
Transfer appropriation for the Land Preservation Fund to the proper service area Base Budget Adjustment
  Transfers $42,000 from Customer Services to Valuation and Assessment Assistance for Localities. This amendment reflects the correct service area from which Land Preservation Tax Credit administration costs are expended.
•
Transfer nongeneral fund appropriation for Communications Tax administration Base Budget Adjustment
  Transfers $150,000 from the Contract Collector Fund in Compliance Collections to the Virginia Communications Sales and Use Tax Fund in Compliance Audit to properly align appropriation with historic expenditures and previous administrative adjustments.
•
Transfer nongeneral fund appropriation for Insurance Premium Tax administration Base Budget Adjustment
  Transfers $103,950 from the Contract Collector Fund in Compliance Collections to the State Corporation Commission Insurance Fees and Assessments Fund in Compliance Audit to properly align appropriation with historic expenditures and previous administrative adjustments.
•
Transfer nongeneral fund appropriation for land assessor training costs Base Budget Adjustment
  Transfers $45,000 from the Contract Collector Fund in Compliance Collections to Training for Local Assessors to properly align appropriation with historic expenditures for land assessor training classes.
•
Transfer nongeneral fund appropriation for Land Preservation Tax Credit administration Base Budget Adjustment
  Transfers $174,000 from the Contract Collector Fund in Compliance Collections to the Land Preservation Fund in Valuation and Assessment Assistance for Localities to properly align appropriation with historic expenditures for administration of the Land Preservation Tax Credit.
•
Transfer nongeneral fund appropriation for Motor Vehicle Rental Tax administration Base Budget Adjustment
  Transfers $250,000 from the Commonwealth Transportation Fund in Tax Return Processing to the Motor Vehicle Rental Tax Fund in Compliance Audit to properly align appropriation with historic expenditures and previous administrative adjustments.
•
Transfer nongeneral fund appropriation for Railroad and Pipeline administration Base Budget Adjustment
  Transfers $75,000 from the Contract Collector Fund in Compliance Collections to the State Corporation Commission Public Service Co. Fees and Taxes Fund in Valuation and Assessment Assistance for Localities to properly align appropriation with historic expenditures and previous administrative adjustments.
•
Transfer positions to match organizational realignment Base Budget Adjustment
  Transfers 25 general fund full-time equivalent positions from Tax Return Processing to the Administrative and Support Services Program. This amendment reflects the agency's organizational realignment.
•
Provide funding for Market Based Sourcing (MBS) Decision Package
  Provides support to collect data through dual reporting. Under MBS, every corporation having income from business activity which is taxable both within and without the Commonwealth that has Virginia taxable income before apportionment equal to or in excess of $50 million on the return filed for Taxable Year 2014 must submit information to the Department of Taxation showing the computation of its Taxable Year 2014 sales factor using market-based sourcing. The required information must be submitted to the Department of Taxation on or before June 1, 2016. Any corporation required to submit such information to the Department of Taxation that does so on or before June 1, 2016 shall receive an allocation of $2,500 from the Department of Taxation. Any corporation required to submit such information to the Department of Taxation that fails to do so on or before June 1, 2016, or that fails to submit such information accurately shall be subject to a penalty of $5,000. The Tax Commissioner shall have the authority to waive such penalty upon a determination that the requirement would cause an undue hardship.
 
  FY FY
General Fund $2,500,000 $0
•
Increase staffing in the Refund Review/Identity Theft Program Decision Package
  Provides additional funding to support 14 full-time equivalent positions to address the growth in identity theft and refund fraud. Positions include 10 auditors, one audit team leader, one bank specialist and one senior business analyst, and one system analyst/developer.
 
  FY FY
General Fund $828,868 $945,018
•
Reduce refund fraud by implementing taxpayer authentication process Decision Package
  Provides funding to implement a front-end tax filer authentication program. Authenticating tax filers up front mitigates risk and reduces the possibility of tax fraud.
 
  FY FY
General Fund $377,000 $419,000
•
Provide positions to enhance information technology security efforts Decision Package
  Supports the costs of two full-time equivalent positions. These two positions will ensure the agency maintains compliance with the application patch management process across the nearly 7,000 desktop applications.
 
  FY FY
General Fund $296,660 $288,792
•
Enhance sales and use tax through tobacco compliance Decision Package
  Provides support for three full-time equivalent positions. The funding will support sales tax collections through enhanced tobacco compliance efforts.
 
  FY FY
General Fund $285,362 $273,167
•
Enhance information technology security software Decision Package
  Provides funding to procure software packages to enhance the agency's cyber security efforts.
 
  FY FY
General Fund $400,000 $150,400
•
Adjust appropriation for the costs of the new Cardinal financial system Decision Package
  Reflects the agency's share of the costs of the new Cardinal accounting system. The Department of Accounts allocates the yearly cost of the system to agencies based upon the number of transactions the agency completed in the previous fiscal year.
 
  FY FY
General Fund $182,601 $190,301
Nongeneral Fund $27,292 $28,454
•
Expand electronic filing mandates Decision Package
  Adds language mandating electronic filing of Vending Machine Dealer’s Sales Tax, Motor Vehicle Rental Tax and Fee, Communications Taxes, and Tobacco Products Tax returns. The language also provides the Tax Commissioner authority to waive the requirement for undue hardship. This change from paper filing to electronic filing supports the Governor’s initiative for streamlining and making government more efficient.
 
  FY FY
General Fund ($23,618) ($23,618)
•
Adjust appropriation to support workers' compensation premiums Decision Package
  Supports the agency's workers' compensation premiums based on the allocation of program costs provided by the Department of Human Resource Management. The allocation is based on the historical experience of the agency and reflects the current policy of providing agencies with 50 percent of any increased costs and allowing agencies to retain 50 percent of any reduced costs.
 
  FY FY
General Fund $4,163 $4,901
•
Market Based Sourcing General Assembly Adjustment
  This amendment removes one-time funding in fiscal year 2017 and language requiring the Department of Taxation to complete a review of market-based sourcing.
 
  FY FY
General Fund ($2,500,000) $0
•
Front-End Tax Filer Authentication General Assembly Adjustment
  This amendment removes proposed funding provided to the Department of Taxation to procure a front-end tax filer authentication system that would be optional for filers to use.
 
  FY FY
General Fund ($377,000) ($419,000)


p3_bullets - Official Enacted Budget - 01-24-2026 11:55:24