RICHMOND, VA (WWBT) - A bill that will provide Virginia tax payers with a $110 refund this fall has been sent to Gov. Ralph Northam to sign.
The House of Delegates and Virginia Senate are sending identical bills to the governor that will provide $420 million in tax rebates.
If enacted, individual filers will receive $110 from the commonwealth in October and married couple will receive $220.
More Virginia tax payers are expected to take the standard deduction when filing this year than before because the federal deduction was doubled by the tax reform law signed by President Donald Trump.
State law requires those people to take the standard deduction on their state return as well, but Republicans say that means those individuals will pay too much in state taxes because Virginia’s tax code did not keep the state’s standard deduction compatible with the federal one.
The bill essentially corrects that overpayment by providing an additional refund. It also corrects the standard deduction disparity by raising the state deduction by 50 percent - to $4,500 for individuals and $9,000 for couple - starting with the 2019 tax year.
Both the House and Senate bills were approved as “emergency” legislation and will take effect immediately upon being signed.