By Steve Haner
Pick any member of the General Assembly at random, stop them in the grocery store for a chat, and quiz them about the digital sales tax they approved a week ago Saturday. It will quickly become clear that most had no idea what they were voting for when they approved it. Continue reading
Posted in Business and Economy, General Assembly, Government Finance, Taxes
Tagged Stephen D. Haner
By Derrick Max
We have reached sine die of the 2024 General Assembly legislative session. During this session, over a thousand individual bills and a nearly 500-page biennial budget were sent to the Governor. All of this must be reviewed and acted upon by Governor Glenn Youngkin (R) before the April 17 reconvened session.
There may be hundreds of bills on the Governor’s desk worthy of his veto. Additionally, Democrats inserted partisan policy decisions within the budget in such a way that the Governor may need to veto it in its entirety. As Senator Creigh Deeds (D-Charlottesville) noted in his end-of-session constituent letter: “The budget includes items the Governor does not support, and some of those may be difficult for the Governor to veto because they are woven into the fabric of the budget itself. Speculation is rampant that he may opt to veto the budget, which would set us up for another prolonged budget debate.”
Governor Youngkin should not hesitate to use his veto pen liberally, including on the budget. As former Governor Terry McAuliffe (D) said, “The veto is not a decision I take lightly, but it is a necessary tool to prevent harmful legislation from becoming law. I will continue to stand up for the values and priorities of the people of Virginia by exercising this authority judiciously.” Governor McAuliffe had the highest number of vetoes in recent years when he faced Republican majorities in both chambers, vetoing 49 bills in 2017 alone and 120 during his entire term. Continue reading
Posted in Business and Economy, General Assembly, Government Finance, Taxes
Tagged Derrick A. Max
By Steve Haner
The Virginia General Assembly has now jumped into the brave new world of taxing the digital economy, but the sales tax provisions it adopted in the budget conference report Saturday are not the same ones that appeared in earlier budget versions. The cabal of tax raisers in the secret final negotiation got creative. Continue reading
The Daily Press credits Jennette’s Pier for these two photos it published.
Another whale has turned up dead on a beach, the fourth found on Virginia or North Carolina beaches within one week, several within sight of Dominion Energy Virginia’s offshore turbine project. This one was identified as a juvenile sperm whale and is the furthest from the project site.
In all the news coverage so far, no intrepid reporter has told their viewers or readers what (if anything) is going on out in the ocean on the construction site. Dominion’s federal license allowing “incidental take” of marine mammals began its five-year effective period in early February. It would be fair to ask the utility if contractors are actively surveying the sea floor with sonar at this time or doing any preliminary pile driving. Continue reading
Posted in Business and Economy, Environment, Regulations and Government Oversight, Utilities
Tagged CVOW, Dominion, Stephen D. Haner
by James A. Bacon
A recurring debate in Virginia’s push toward a net-zero electric grid has been whether demand for electricity in the Old Dominion will grow or shrink. Citing expansion of demand from data centers and electric vehicles, Dominion Energy has contended for years that demand for electricity would continue increasing at a steady rate. Environmentalists scoffed, saying that conservation measures would enable Virginians to meet aggressive goals to phase out fossil fuel plants and rely heavily upon solar and wind.
I highlighted this debate back in 2018 in this article. Dominion forecast a 1.4% annual increase in peak demand over the next 15 years.
“Actual electricity demand growth over the next several years will not come close to Dominion’s inflated 1.3% growth” as forecast in its 2017 IRP, wrote William Shobe, director of the Center for Economic Policy Studies at the University of Virginia. “Something like 0.5% to 0.7% is much more likely. And this is with data center demand.”
“It’s time for Dominion to change its model and assumptions to reflect reality—there is less load growth than predicted, and what load is coming to the Commonwealth comes from companies demanding renewable energy options,” said Will Cleveland with the Southern Environmental Law Center.
So, what’s the story nearly six years later? Here’s the headline from today’s Washington Post: “AI and the boom in clean-tech manufacturing are pushing America’s power grid to the brink. Utilities can’t keep up.” Continue reading
By Steve Haner
Dominion Energy Virginia insists that its decision to sell a half-interest in the Coastal Virginia Offshore Wind project “won’t impact ratepayers.” The problem is, perhaps it should. Perhaps Dominion is creating additional value for its shareholders that instead should benefit ratepayers. Continue reading
by Joe Fitzgerald
Dartmouth’s basketball team voted this week to unionize. It’s a shame Harrisonburg’s police officers can’t.
The basketball players will join the SEIU, Service Employees International Union, a kind of super union for people who don’t qualify for other unions. SEIU strongly supports health care and a higher minimum wage, making it a strong supporter of Democratic candidates.
The five Democrats on Harrisonburg’s City Council say police can’t even talk to them about collective bargaining. It would be too expensive. This from a council that approved the pig-in-a-poke, bait-and-switch Bluestone Town Center and is spending money to make the city more homeless-friendly. Priorities, I suppose. Continue reading
Posted in Crime, Corrections and Law Enforcement, Labor and Workforce
Tagged Joe Fitzgerald
One of two dead whales washed onto Virginia Beach so far this month, just onshore from the CVOW project. WAVY reports on it.
By David Wojick
In formal comments, the Committee for a Constructive Tomorrow (CFACT) has asked the U.S. Environmental Protection Agency to assess the adverse impact of the giant Virginia offshore wind project on air and water quality. The issue is far-reaching because all big offshore wind facilities could have these adverse effects. Continue reading
Posted in Energy, Environment, Regulations and Government Oversight, Utilities
Tagged CVOW, Dominion, Guest contributors
Jared Walczak of the Tax Foundation
By Steve Haner
The last time the General Assembly made a similar mistake with the Virginia tax code was 20 years ago. It was 2004, and the complaints that business was not “paying its fair share” came from Republicans in the House. They introduced and quickly pushed through a bill that stripped sales tax exemptions from multiple categories of business. Sound familiar?
Twenty years later the only thing that has changed is that the bad idea is now coming from Senate Democrats. The anti-business rhetoric sounds the same. The sales or use taxes of up to 6-7% they seek to impose on business-to-business digital transactions (goods and services) will reach into every Virginia company, large and small. It will simply be passed along in higher prices. The only winners are their out-of-state competitors who have no such taxes in their states. Continue reading
Posted in Business and Economy, General Assembly, Government Finance, Taxes
Tagged Stephen D. Haner
by Jon Baliles
As noted, two weeks ago City Council approved the change to city code to make sure the city’s Finance Department only applies meals tax payments to the month for which the invoice is submitted. So, no more of the shady practice that had been applying a portion of say, May’s tax payment, to an outstanding balance from April’s bill. The reason that’s a bad idea is that the city could put any account in arrears but the business owner never knew because the city had a practice of not informing the business they were in arrears, which led to the crazy snowballing of interest and penalties that resulted in bills of $37,000, $50,000, and $68,000.
Samuel Veney, the owner of Philly Vegan, who was told by the city he owed $37,000 in penalties and interest, was eloquent and forceful at the City Council podium on February 12th. He implored Council not only to listen, but to hear what he way saying — he wanted to make sure they heard how he was missing time with his children and spending too much time dealing with the city’s screw-ups instead of working at his business. Said Veney:
What we are saying to y’all right now is to take the opportunity to make change happen. It shouldn’t have gotten this far and now that it has you actually have the opportunity to actually make change happen in a better way for our city. Continue reading
By Chris Braunlich
Some years back, I ran into a friend, a Virginia Education Association unit chair, outside the General Assembly building, there to lobby on behalf of a state-wide teacher salary increase. Continue reading
Posted in Education (K-12), General Assembly, Government Finance, Unions
Tagged Chris Braunlich
Small modular reactor illustrated
By Steve Haner
A Virginia Senate committee voted Monday to approve a House of Delegates bill designed to finance a small modular nuclear reactor in Southwest Virginia, contradicting its own earlier vote for a much broader bill that had statewide application.
Two different bills on the same topic might now pass the Virginia Senate. If the House does the same thing with the Senate bill, now alive in front of its Labor and Commerce Committee, Governor Glenn Youngkin (R) could have two very different bills to choose from. Continue reading
Posted in Energy, Environment, General Assembly, Regulations and Government Oversight, Utilities
Tagged APCO, Dominion, Stephen D. Haner
Virginia sales tax rates: Light blue, 5.3%, green, 6%, dark blue, 6.3% and yellow 7%. All but the localities in dark blue would be allowed to add another 1% under this pending legislation. Click for larger view.
By Steve Haner
A bill likely to produce $1.6 billion or more in local sales tax increases is moving through the General Assembly with enough bipartisan votes to block any veto from the Governor, but differences remain between the House of Delegates and Senate versions. Continue reading
Posted in Business and Economy, Education (K-12), General Assembly, Government Finance, Taxes
Tagged Stephen D. Haner
Econ 101 Quiz. Virginia Democrats are poised to raise the sales tax 1% in most localities, add digital products to the taxed services, and create a new payroll tax. How will those changes impact that chart? Click for larger view.
By Steve Haner
A piece of Republican Governor Glenn Youngkin’s tax package has survived after all, but only the part that increases the sales tax base to collect about $1 billion or so more per year from citizens. Democrats who recently complained that sales tax increases were unfair to the poor are suddenly embracing them.
On Sunday, both the Virginia Senate and the House of Delegates budget committees approved Youngkin’s budget language to impose the sales tax on a host of digital products and services, adding 6% or more to the prices of downloads, streaming services, and online data storage. The full range of newly taxed transactions is not yet clear.
The Senate then increased the gain to the treasury by making sure the new taxes will also cover business-to-business transactions, something the governor sought to exempt and something which is just passed along in higher prices.
The risk of including that tax policy initiative inside Youngkin’s introduced budget bill was obvious from the start, and General Assembly Democrats have now pounced on the opportunity to capture that revenue. The tax increase is now wrapped in with all the state spending for two years, a hard bill to vote against. Continue reading
Posted in Business and Economy, General Assembly, Government Finance, Taxes, Uncategorized
Tagged Stephen D. Haner
The states in the Regional Greenhouse Gas Initiative tax compact before Virginia withdrew.
By Steve Haner
A circuit court judge in Floyd County may soon order Virginia to rejoin the Regional Greenhouse Gas Initiative and to reimpose the related carbon tax on Virginia’s electricity consumers.
Judge Kenneth “Mike” Fleenor Jr. ruled earlier this month that a suit seeking reinstatement of RGGI could continue and held a hearing on February 5 on the question of “immediate relief.” The plaintiff, a group of energy efficiency and insulation contractors using the RGGI tax dollars for their programs, has claimed it will suffer immediate and irreparable harm unless Virginia returns to collecting a carbon tax on coal and natural gas used by utilities. Continue reading
Posted in Courts and law, Energy, General Assembly, Taxes, Utilities
Tagged RGGI, Stephen D. Haner
