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 2, 2024 Acts of Assembly, Special Session 1 $120,315,382 $13,426,065 $133,741,447
2024-2026 2025 Base Budget $108,916,408 $12,511,087 $121,427,495
2024-2026 2025 Governor's Amendments $8,013,960 $256,978 $8,270,938
2024-2026 2025 General Assembly Adjustments $3,385,014 $658,000 $4,043,014
2024-2026 2026 Chapter 2, 2024 Acts of Assembly, Special Session 1 $118,797,236 $13,539,065 $132,336,301
2024-2026 2026 Base Budget $108,916,408 $12,511,087 $121,427,495
2024-2026 2026 Governor's Amendments $8,013,960 $256,978 $8,270,938
2024-2026 2026 General Assembly Adjustments $1,866,868 $771,000 $2,637,868
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 2, 2024 Acts of Assembly, Special Session 1 930.00 56.00 986.00
2024-2026 2025 Base Budget 907.00 56.00 963.00
2024-2026 2025 Governor's Amendments (82.00) 0.00 (82.00)
2024-2026 2025 General Assembly Adjustments 105.00 0.00 105.00
2024-2026 2026 Chapter 2, 2024 Acts of Assembly, Special Session 1 930.00 56.00 986.00
2024-2026 2026 Base Budget 907.00 56.00 963.00
2024-2026 2026 Governor's Amendments (82.00) 0.00 (82.00)
2024-2026 2026 General Assembly Adjustments 105.00 0.00 105.00
Operating Budget Addenda (in order of greatest impact)
•
Adjust appropriation for centrally funded five percent salary increase for state employees Base Budget Adjustment
  Adjusts appropriation for the five percent salary increase for state employees budgeted in Central Appropriations, Item 483 S. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $5,985,919 $5,985,919
Nongeneral Fund $233,065 $233,065
•
Adjust appropriation for centrally funded changes to state health insurance premiums Base Budget Adjustment
  Adjusts appropriation for the employer’s share of health insurance premiums budgeted in Central Appropriations, Item 483 G. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $398,840 $398,840
Nongeneral Fund $16,553 $16,553
•
Adjust appropriation for centrally funded changes to agency information technology costs Base Budget Adjustment
  Adjusts appropriation for changes to information technology and telecommunications usage budgeted in Central Appropriations, Item 484 C. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund ($338,788) ($338,788)
Nongeneral Fund ($15,236) ($15,236)
•
Adjust appropriation for centrally funded minimum wage increases Base Budget Adjustment
  Adjusts appropriation to reflect the increase in the Virginia minimum wage effective January 1, 2023, and budgeted in Central Appropriations, Item 483 R. of Chapter 2, 2022 Acts of Assembly, Special Session I. The amounts provided support the annualized general fund cost of increasing the Virginia minimum wage from $11.00 per hour to $12.00 per hour or the equivalent annual salary of $24,960.
 
  FY FY
General Fund $321,180 $321,180
Nongeneral Fund $318 $318
•
Adjust appropriation for centrally funded changes to Cardinal Financials System charges Base Budget Adjustment
  Adjusts appropriation for changes to Cardinal Financials System internal service fund charges budgeted in Central Appropriations, Item 484 F. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $134,455 $134,455
Nongeneral Fund $15,583 $15,583
•
Adjust appropriation for centrally funded changes to Cardinal Human Capital Management System charges Base Budget Adjustment
  Adjusts appropriation for changes to Cardinal Human Capital Management System internal service fund charges budgeted in Central Appropriations, Item 484 G. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $95,228 $95,228
Nongeneral Fund $3,708 $3,708
•
Adjust appropriation for centrally funded information technology auditors and security officers Base Budget Adjustment
  Adjusts appropriation for information technology auditors and information security officers budgeted in Central Appropriations, Item 484 E. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $71,222 $71,222
Nongeneral Fund $1,021 $1,021
•
Adjust appropriation for centrally funded property insurance premium charges Base Budget Adjustment
  Adjusts appropriation for property insurance premiums billed by the Department of the Treasury’s Division of Risk Management budgeted in Central Appropriations, Item 484 J. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $21,515 $21,515
Nongeneral Fund $2,370 $2,370
•
Adjust appropriation for centrally funded internal service fund charges for the Personnel Management Information System Base Budget Adjustment
  Adjusts appropriation for Personnel Management Information System internal service fund charges budgeted in Central Appropriations, Item 484 I. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund ($10,991) ($10,991)
Nongeneral Fund ($502) ($502)
•
Adjust appropriation for centrally funded workers’ compensation premium changes Base Budget Adjustment
  Adjusts appropriation for workers’ compensation premiums budgeted in Central Appropriations, Item 483 P. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $4,352 $4,352
Nongeneral Fund $447 $447
•
Adjust appropriation for centrally funded changes to Performance Budgeting system charges Base Budget Adjustment
  Adjusts appropriation for changes to Performance Budgeting system internal service fund charges budgeted in Central Appropriations, Item 484 H. of Chapter 2, 2022 Acts of Assembly, Special Session I.
 
  FY FY
General Fund ($2,669) ($2,669)
Nongeneral Fund ($349) ($349)
•
Transfer appropriation to align budget with expenditures Base Budget Adjustment
  Net zero transfer of general fund appropriation between programs to align with historic expenditure levels by program.
•
Continue Chapter 1 funding changes: Provide funding for two percent salary increase Decision Package
  Adjusts appropriation for the two percent salary increase for state and state supported local employees budgeted in Central Appropriations, Paragraphs S, T, U, and V of Item 483, Chapter 1, 2023 Acts of Assembly, Special Session I.
 
  FY FY
General Fund $1,287,697 $1,287,697
•
Continue Chapter 1 funding changes: Provides funding for tax administration costs Decision Package
  Provides for the ongoing impact of appropriation changes included in Chapter 1, 2023 Special Session I. Provides general fund to cover costs associated with updating systems utilized by TAX, consistent with provisions of bills passed in the 2023 General Assembly Session.
 
  FY FY
General Fund $76,000 $76,000
•
Mandate online registration for new businesses Decision Package
  Mandates that all new businesses in the Commonwealth file their registration electronically through the Business iReg application.
 
  FY FY
General Fund ($30,000) ($30,000)
•
Reduce maximum employee level count Decision Package
  Reduces the number of full time equivalent positions to properly reflect the current employment levels. The current maximum employee level is overstated.
 
  FY FY
Positions (82.00) (82.00)
•
Transfer uncommitted court debt collection office fund balances Decision Package
  Provides for a one time transfer of excess balances in the Court Debt Collection Program fund to the general fund.
•
Increase Compliance Positions General Assembly Adjustment
  This amendment provides $1.5 million each year from the general fund and 20 positions to enhance efforts within the Department of Taxation to enforce compliance activities. Companion adjustments to the revenue projections reflect additional revenues anticipated from these enhanced compliance activities.
 
  FY FY
General Fund $1,493,520 $1,493,520
Positions 20.00 20.00
•
Implementation of Retail Tobacco Products Legislation General Assembly Adjustment
  This amendment provides administrative funding for the Department of Taxation to implement House Bill 790 / Senate Bill 582, which deals with the regulation and sale of retail tobacco products.
 
  FY FY
Nongeneral Fund $658,000 $771,000
•
IRMS System Replacement General Assembly Adjustment
  This amendment provides $1.0 million the first year from the general fund for anticipated costs related to the replacement of the state's Integrated Revenue Management System (IRMS). The amendment also continues efforts underway by the Department of Taxation to assess and provide a plan for the replacement IRMS, to include an update of its findings, due by November 1, 2024.
 
  FY FY
General Fund $1,000,000 $0
•
2024 Special Session I: Remove administrative costs associated with cannabis legislation General Assembly Adjustment
  This amendment removes $739,430 in the first year in general fund appropriation that was provided for the administrative costs of implementing cannabis legislation, which has been vetoed by the Governor.
 
  FY FY
General Fund ($739,430) $0
•
TAX: Administrative Costs for Cannabis Retail Sales and Use Tax General Assembly Adjustment
  This amendment provides $739,430 from the general fund in the first year for one-time costs for the Department of Taxation to administer the provisions of legislation passed by the 2024 General Assembly related to the implementation of a cannabis retail sales and use tax.
 
  FY FY
General Fund $739,430 $0
•
Implementation of Heated Tobacco Tax Legislation General Assembly Adjustment
  This amendment provides funding for the Department of Taxation to implement House Bill 1099 from the 2024 Session, which redefines 'cigarette' for state cigarette tax purposes to include any product containing nicotine that is intended to be burned or heated under ordinary conditions of use and subjects such cigarettes intended to be heated to an excise tax of 2.25 cents per cigarette on and after July 1, 2021.
 
  FY FY
General Fund $403,000 $297,000
•
Operating Support for Bank Franchise Tax Implementation General Assembly Adjustment
  This amendment provides $488,494 the first year and $76,348 the second year from the general fund for administrative costs incurred by the Department of Taxation in support of legislation passed by the 2023 General Assembly related to the Bank Franchise Tax. A companion amendment to House Bill 29 provides funding in the current year for immediate work needed to effectuate the purposes of the law change.
 
  FY FY
General Fund $488,494 $76,348
Positions 3.00 3.00
•
2024 Special Session I: Remove administrative costs associated with skill games legislation General Assembly Adjustment
  This amendment removes $458,208 in the first year and $97,158 in the second year in general fund appropriation that was provided for the administrative costs of implementing skill game legislation, which is being amended by the Governor.
 
  FY FY
General Fund ($458,208) ($97,158)
Positions (14.00) (14.00)
•
Skill Game Machines: Administration Costs General Assembly Adjustment
  This amendment provides $458,208 in the first year and $97,158 in the second year from the general fund, as well as authorization for the Department of Taxation to receive a treasury loan to implement the provisions of legislation passed by the 2024 General Assembly related to skill game machines.
 
  FY FY
General Fund $458,208 $97,158
Positions 14.00 14.00
•
2024 Special Session I: Amend IRMS Workgroup Language and authorize Treasury Loan General Assembly Adjustment
  This amendment modifies the Internal Revenue Management System workgroup language and authorizes a treasury loan.
•
TAX: Modify Position Level General Assembly Adjustment
  This amendment restores the position level, by increasing 82 positions each year, for the Department of Taxation to the level in the current Appropriation Act.
 
  FY FY
Positions 82.00 82.00


p3_bullets - Official Enacted Budget - 06-07-2025 07:57:34