By Steve Haner

Virginiaโs Department of Taxation has now released its estimates on the revenue changes that would result if the stateโs tax laws were amended next year to conform to the new federal tax rules signed by President Donald Trump.ย
To taxpayers, the question is will they get a big tax cut at the state level. To the politicians in Richmond and the headline writers at the Richmond Times-Dispatch, the question is how much money the state will โlose.โ The money wonโt be lost; it can be found in peopleโs pockets.ย ย
The amounts in question are similar to but more reliable than those estimated earlier this summer by The Tax Foundation and reported here. The staff at the Department of Taxation also examined more of the provisions of the complicated OBBBA, including some which could be viewed as pending tax increases on state residents. The net impact according to the stateโs projections is $2.3 billion over three years (lost revenue to some, tax savings to others).ย
Deputy Commissioner Kristin Collins had the Tax Departmentโs usual easy-to-follow slide deck for the Senate Finance and Appropriations Committee Tuesday.ย
Anticipating that major federal changes were coming following Trumpโs inauguration, the General Assembly disconnected the stateโs normal process for conforming to federal tax changes. Virginiaโs state income tax starts its calculation with federal adjusted gross income, and the OBBBA changed that multiple ways.
















