Virginia Ends Fiscal Year 2021 with $2.6 Billion Revenue Surplus

Virginia ended Fiscal Year 2021 with a $2.6 billion surplus, the largest in Virginia’s history, with a 14.5 percent revenue growth over FY 2020.

“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results—record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” Governor Ralph Northam said in a press release.

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Virginia’s Minimum Wage Increases to $9.25 an Hour May 1

Virginia’s minimum wage is going up to $9.25 an hour on May 1. The change is the result of 2020 legislation, part of several pro-worker changes initiated by the Democrat-controlled General Assembly in 2020 and 2021. Advocates say the change will boost the economy by enabling more people to pay rent and spend money in Virginia businesses. But opponents say the increase violates free-market principles and will harm employers who have to increase their hourly compensation while dealing with a COVID-19 economy.

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Virginia General Assembly Pushes Forward with Taxes on Forgiven PPP Loan Revenue

The Virginia General Assembly is moving forward with legislation that would effectively make employers who received Paycheck Protection Plan (PPP) loans liable for state taxes. Bills that would practically exempt all income from the forgiven loans have been replaced with legislation that caps how much of the loan is exempt. Business advocates warn that the taxes could surprise the struggling businesses that the PPP loans were meant to help.

The bills bring Virginia’s tax code into conformity with the IRS; Virginia’s tax law doesn’t automatically change to match federal law, so state legislators pass tax conformity bills.

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Delegate McNamara Sponsors Bill Allowing Schools to Replace Snow Days with Remote Learning Days

Delegate Joseph McNamara’s (R-Roanoke) HB 1790 will allow public schools to declare unscheduled remote learning days instead of snow days — but he’s not trying to eradicate snow days.

“I want kids to have snow days, and I want them to go out and build snowmen, and throw snow balls and have grilled cheese sandwiches,” he said. “I’ll use Roanoke County as an example. Several years back, they missed about 13 days of school in about a month and a half period. And when you have situations where you have ice in the mountains areas and kids can’t get back in to school for days sometimes, it’s not really a snow day. It’s a nasty, ugly day, and so this would give schools another opportunity.”

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Virginia Delegate McNamara Pre-Files Legislation Exempting Forgiven PPP Loans from State Taxes

Delegate Joe McNamara (R-Roanoke) has pre-filed HB 1787, legislation for the 2021 General Assembly session that will exempt business owners from state taxes on forgivable Paycheck Protection Program (PPP) loans. PPP loans are part of broad COVID-19 relief funding meant to help small businesses keep paying their employees.

When the PPP was passed by Congress in March 2020, the forgivable loans were exempt from federal taxes, but Virginia’s tax structure means the forgiven PPP loans are not automatically exempt from state taxes. McNamara said that could lead to confusion for business owners.

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Republican Delegates Call for In-Person Meetings During January General Assembly Session

Two Republican state delegates released a joint statement on Tuesday calling for the Speaker of the House Eileen Filler-Corn (D-Fairfax) to work with members on finding a way to hold in-person meetings during January’s regular General Assembly session.

Delegates Christopher Head (R-Roanoke) and Joseph McNamara (R-Roanoke County) said in the statement they are preparing to be in Richmond for the start of the regular session.

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