Starting in 1993 and up until 2020, localities across Virginia received a portion of state recordation tax revenue. Localities were yearly slated to receive $20 million, apportioned amongst the various counties and cities and could use these funds for transportation or public education purposes. In the 2020 General Assembly Session, this revenue was redirected towards Hampton Roads Regional Transit, effectively eliminating the funding to localities. VACo over the years has worked closely with legislators to try and restore the funding to localities while holding Hampton Roads Regional Transit harmless.
Senator Stuart has introduced a budget amendment, in consultation with VACo staff, that seeks to do just this. The amendment allocates $20 million from the general fund in FY 2024 to be redistributed amongst localities as it had been up until the change in 2020. The budget amendment does not affect funding to Hampton Roads Regional Transit.
The Senator further assisted VACo as he introduced legislation that seeks to add recordation tax revenue distributable to localities to code. SB 1161 (Stuart), as introduced, raises from $20 million to $60 million the amount of recordation tax revenue that should be annually distributed. This bill holds Hampton Roads Regional Transit harmless by keeping their $20 million allocation annually. The important change in this bill, and one VACo members will be delighted to learn, is that SB 1161 not only re-establishes the recordation tax revenue that localities should receive, but this raises the amount from $20 million to $40 million.
VACo supports budget amendment Item 266 #1s and SB 1161 (Stuart).
VACo Contact: James Hutzler