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
2018-2020 2019 Chapter 1283, 2020 Acts of Assembly $101,948,266 $12,310,705 $114,258,971
2018-2020 2020 Chapter 1283, 2020 Acts of Assembly $101,457,127 $12,267,283 $113,724,410
2020-2022 2021 Chapter 1, 2022 Acts of Assembly $107,110,104 $12,482,691 $119,592,795
2020-2022 2022 Chapter 1, 2022 Acts of Assembly $108,592,426 $12,482,691 $121,075,117
2021-2024 2022 Chapter1, 2024 Acts of Assembly $110,235,175 $12,511,087 $122,746,262
2021-2024 2023 Chapter1, 2024 Acts of Assembly $110,562,948 $12,511,087 $123,074,035
2024-2026 2025 Chapter 725, 2025 Acts of Assembly $1,232,322,626 $13,426,065 $1,245,748,691
2024-2026 2025 Previous Legislative Appropriation $120,315,382 $13,426,065 $133,741,447
2024-2026 2025 Governor's Amendments $133,464,244 $0 $133,464,244
2024-2026 2025 General Assembly Adjustments $978,543,000 $0 $978,543,000
2024-2026 2026 Chapter 725, 2025 Acts of Assembly $126,981,352 $13,539,065 $140,520,417
2024-2026 2026 Previous Legislative Appropriation $118,797,236 $13,539,065 $132,336,301
2024-2026 2026 Governor's Amendments $8,184,116 $0 $8,184,116
2024-2026 2026 General Assembly Adjustments $0 $0 $0
Positions Budget Summary
Biennium Fiscal Year Source GF NGF Total
2018-2020 2019 Chapter 1283, 2020 Acts of Assembly 894.00 56.00 950.00
2018-2020 2020 Chapter 1283, 2020 Acts of Assembly 897.00 56.00 953.00
2020-2022 2021 Chapter 1, 2022 Acts of Assembly 905.00 56.00 961.00
2020-2022 2022 Chapter 1, 2022 Acts of Assembly 905.00 56.00 961.00
2021-2024 2022 Chapter1, 2024 Acts of Assembly 907.00 56.00 963.00
2021-2024 2023 Chapter1, 2024 Acts of Assembly 911.00 56.00 967.00
2024-2026 2025 Chapter 725, 2025 Acts of Assembly 930.00 56.00 986.00
2024-2026 2025 Previous Legislative Appropriation 930.00 56.00 986.00
2024-2026 2025 Governor's Amendments 0.00 0.00 0.00
2024-2026 2025 General Assembly Adjustments 0.00 0.00 0.00
2024-2026 2026 Chapter 725, 2025 Acts of Assembly 933.00 56.00 989.00
2024-2026 2026 Previous Legislative Appropriation 930.00 56.00 986.00
2024-2026 2026 Governor's Amendments 3.00 0.00 3.00
2024-2026 2026 General Assembly Adjustments 0.00 0.00 0.00
Operating Budget Addenda (in order of greatest impact)
•
Increase appropriation for the replacement of revenue management system Decision Package
  Provides general fund appropriation for the replacement of the Integrated Revenue Management System (IRMS). The current system is outdated, and a replacement solution is required to avoid future system failure.
 
  FY FY
General Fund $131,000,000 $0
•
Provide appropriation for the replacement of unsupported systems Decision Package
  Provides general fund appropriation for the replacement of four systems. These critical systems are nearing end of life and will be unsupported in 2025.
 
  FY FY
General Fund $1,500,000 $3,202,000
•
Provide appropriation for additional personnel Decision Package
  Provides general fund appropriation for additional personnel for the error resolutions and appeals divisions. Increased costs in information technology costs have caused the department to not fill vacancies in the divisions, which have led to backlogs in work.
 
  FY FY
General Fund $0 $2,282,687
•
Increase appropriation to implement security initiatives Decision Package
  Provides general fund appropriation to implement information technology security initiatives. This funding will be used for data center security updates, the creation of a data catalog, and three information technology security positions.
 
  FY FY
General Fund $400,000 $1,818,069
Positions 0.00 3.00
•
Provide appropriation for postage cost increase Decision Package
  Provides general fund appropriation for increased postage costs. This funding will be used to mitigate increased postage costs.
 
  FY FY
General Fund $564,244 $745,322
•
Increase appropriation for development of open space values Decision Package
  Provides general fund appropriation to increase the scope of the existing memorandum of understanding between the department and Virginia Tech regarding the State Land Evaluation and Advisory Council duties. This appropriation will be used to develop open space values.
 
  FY FY
General Fund $0 $136,038
•
Amend refund procedures for internet service providers exemption Decision Package
  Amends budget language for refund procedures for internet service providers exemption. This amendment removes existing budget language requiring internet service providers to pay sales tax and subsequently seek a refund for exempt purchases, which is less burdensome to the taxpayer and generate revenues by reducing the amount of refund interest paid.
•
Transfer appropriation between service areas Decision Package
  Transfers general fund appropriation between service areas to reflect organizational realignment.
•
Transfer appropriation to correct fund Decision Package
  Transfers appropriation from budgetary only fund to the Electronic Nicotine Delivery Systems fund. This amendment is technical in nature.
•
Provide Income Tax Rebate (258 #1c) General Assembly Adjustment
  This amendment provides $977.8 million from the general fund in the first year to effectuate an income tax rebate of $200 for single files and $400 for married filers to be paid during fiscal year 2026.
 
  FY FY
General Fund $977,780,000 $0
•
Administrative Costs for Tax Relief (258 #4c) General Assembly Adjustment
  This amendment provides $763,000 from the general fund the first year for the administrative costs at the Department of Taxation to provide tax relief for working Virginians by issuing rebate checks or direct deposit.
 
  FY FY
General Fund $763,000 $0
•
Exempt TAX from Tobacco Inspection Requirements (258 #3c) General Assembly Adjustment
  This amendment exempts the Department of Taxation from provisions of the Code of Virginia that require the unannounced investigation of tobacco licensees every 24 months. House Bill 1946 includes an enactment clause establishing a work group to examine and make recommendations regarding tobacco enforcement over the coming year.
•
Net Operating Losses Workgroup (257 #2c) General Assembly Adjustment
  This amendment directs the Department of Taxation to convene a workgroup to study Virginia s treatment of net operating losses ( NOLs ) for corporate tax returns compared to other states and make recommendations.
•
Remove Unnecessary Skill Game Oversight Language (258 #2c) General Assembly Adjustment
  This amendment removes language included in the existing budget related to skill games regulation from the 2024 Session of the General Assembly that was vetoed by the Governor.
•
TAX: Replacement of Revenue Management System (260 #1c) General Assembly Adjustment
  This amendment modifies the language regarding the replacement of the Department of Taxation's Integrated Revenue Management System to ensure that the new system will include an electronic filing option for individual income tax that can be used by all Virginians. It also contains an annual report to provide updates on the project.
•
Unitary Combined Reporting and Market Based Sourcing Study (257 #1c) General Assembly Adjustment
  This amendment directs the Department of Taxation to study corporate income tax in Virginia, focusing on market-based sourcing for sales. The study will focus on the impacts to Virginia's economy and general fund revenue with the Joint Subcommittee on Tax Policy evaluating any potential fiscal implications. A final report with recommendations is to be submitted by November 15, 2025, to the Money Committees.


p3_bullets - Official Enacted Budget - 06-21-2025 01:16:52