VirginiaHB1672026 Regular SessionHouseWALLET

Tax exemptions; Confederacy organizations.

Sponsored By: Alex Q. Askew (Democratic)

Became Law

Summary

Tax exemptions; Confederacy organizations. Eliminates the exemption from state recordation taxes for the Virginia Division of the United Daughters of the Confederacy and eliminates the tax-exempt designation for real and personal property owned by the Virginia Division of the United Daughters of the Confederacy, the General Organization of the United Daughters of the Confederacy, the Confederate Memorial Literary Society, the Stonewall Jackson Memorial, Incorporated, the Virginia Division, Sons of Confederate Veterans, and the J.E.B. Stuart Birthplace Preservation Trust, Inc. The bill contains technical amendments.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Lower taxes on public and nonprofit deals

The law lowers or removes transfer and recordation taxes on many public‑purpose and nonprofit property deals. Leases to the U.S., Virginia, or local governments are tax‑free. Deeds or leases to The Nature Conservancy are tax‑free when the land is used only to preserve wilderness, natural, or open‑space areas. Documents recorded for public‑private transportation concessions do not pay recordation taxes. It also preserves exemptions for many nonprofit and reorganization transfers, deeds of partition, and transfers tied to divorce, when the listed conditions are met (such as nonprofit use or qualifying as a tax‑free reorganization). Some partnership and LLC deals only qualify if the parties keep at least 50% of profits or surplus, and anti‑avoidance rules apply.

Lower taxes on family and estate deeds

The law removes the recordation tax on three kinds of no‑money transfers. Deeds of gift are tax‑free if no consideration passes and the deed says it is a deed of gift. Transfer‑on‑death deeds and revocations are tax‑free when no value changes hands. Deeds of distribution from an estate or trust are tax‑free when no consideration passes and the front page says it is a deed of distribution. A deed of distribution includes transfers to original beneficiaries to carry out a will, to pass title after death, to use a power of appointment, or under the Trust Decanting Act.

No extra tax inside combined deeds

If one recorded deed does several things and one part is taxed, the part that releases a contractual right is not taxed again. This can lower the cost to record complex deeds.

Lower mortgage taxes for nonprofits and low‑income loans

Certain deeds of trust and mortgages do not pay the recordation tax. Nonprofit colleges, churches, and nonprofit hospitals qualify. Loans made by a county, city, town, or its agency to build or fix a home are exempt if the borrower’s household income is at or below 80% of the area median. The exemption can include buying the land for the home. Some loans by listed nonprofit organizations also qualify.

Property tax breaks for named groups

The law exempts real and personal property of named historical and nonprofit groups, including several Confederate‑related groups, from local property tax when the property is used for museum, historical, or charitable work. Properties that were tax‑exempt on July 1, 1971 keep those exemptions under the old rules. The law also repeals two prior, designated exemptions (§§ 58.1‑3650.31 and 58.1‑3650.716).

Sponsors & Cosponsors

Sponsor

  • Alex Q. Askew

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 151 • No: 67

Senate vote 2/19/2026

Passed Senate

Yes: 21 • No: 17

Senate vote 2/18/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 38 • No: 0

Senate vote 2/17/2026

Reported from Finance and Appropriations

Yes: 8 • No: 5

House vote 2/10/2026

Read third time and passed House

Yes: 62 • No: 35

House vote 2/4/2026

Reported from Finance

Yes: 15 • No: 7

House vote 2/3/2026

Subcommittee recommends reporting

Yes: 7 • No: 3

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0788)

    4/13/2026Governor
  2. Approved by Governor-Chapter 788 (effective 7/1/2026)

    4/13/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  5. Fiscal Impact statement From TAX (2/24/2026 7:36 am)

    2/24/2026House
  6. Bill text as passed House and Senate (HB167ER)

    2/23/2026House
  7. Enrolled

    2/23/2026House
  8. Signed by President

    2/23/2026Senate
  9. Signed by Speaker

    2/23/2026House
  10. Passed Senate (21-Y 17-N 0-A)

    2/19/2026Senate
  11. Read third time

    2/19/2026Senate
  12. Constitutional reading dispensed Block Vote (on 2nd reading) (38-Y 0-N 0-A)

    2/18/2026Senate
  13. Rules suspended

    2/18/2026Senate
  14. Passed by for the day

    2/18/2026Senate
  15. Read second time

    2/18/2026Senate
  16. Reported from Finance and Appropriations (8-Y 5-N)

    2/17/2026Senate
  17. Referred to Committee on Finance and Appropriations

    2/11/2026Senate
  18. Constitutional reading dispensed (on 1st reading)

    2/11/2026Senate
  19. Read third time and passed House (62-Y 35-N 0-A)

    2/10/2026House
  20. Read second time and engrossed

    2/9/2026House
  21. Read first time

    2/6/2026House
  22. Reported from Finance (15-Y 7-N)

    2/4/2026House
  23. Subcommittee recommends reporting (7-Y 3-N)

    2/3/2026House
  24. Assigned HFIN sub: Subcommittee #2

    2/3/2026House
  25. Fiscal Impact statement From TAX (1/13/2026 4:12 pm)

    1/13/2026House

Bill Text

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