VirginiaHB9152026 Regular SessionHouseWALLET

Local taxation; tax extension for federal government shutdown.

Sponsored By: Alfonso H. Lopez (Democratic)

Became Law

Summary

Local taxation; extension for federal government shutdown. Allows a local governing body to provide an extension on personal property taxes owed by federal employees who are furloughed due to a federal government shutdown and essential federal employees who continue to work during such shutdown but do not receive immediate payment for such work as a result of such shutdown. The bill states that any such extension granted shall end and the taxes shall be due no later than 90 days following the reopening of the federal government.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 6 benefits, 0 costs, 1 mixed.

More flexible local tax payments

Local governments can set return and payment due dates by ordinance. They can let you pay in one or two parts or choose monthly, bimonthly, quarterly, or semiannual plans, as long as the full amount is paid by the final due date. They can grant up to 90 extra days to pay or file for good cause by resolution. If you owe omitted taxes, the treasurer can offer a payment plan for up to 72 months, and you must keep current taxes paid during the plan.

Protections for late bills and appeals

If you appeal a tax assessment within 90 days, the bill is not delinquent while the appeal is pending and for 30 days after the final decision. If an assessment is mailed less than two weeks before the due date due to a local official’s fault, no penalty applies if you pay within two weeks of the notice. If the post office or certain tax officials cause a delay, no penalty or interest applies if your filing or payment is received by mail within five days after the deadline and you can show proof of mailing. When property is sold after January 1, the treasurer can reissue the bill to the new owner, who avoids a penalty if they pay within two weeks of the reissued notice. If your locality charges interest on late taxes, it must pay the same interest on refunds for erroneous assessments, except for refunds of $10 or less or certain prorated refunds.

Limits on local tax penalties and interest

Penalties are capped: generally 10% of the tax due, and 25% if tangible personal property is over 30 days late. Interest cannot start before the day after the due date. First‑year interest cannot exceed 10% per year. In later years, interest can be up to the higher of the IRS section 6621 rate or 10%. A locality may also recover attorney or collection agency fees up to 20% of the delinquent tax and other charges, if authorized by ordinance. This state law controls due dates, penalties, and interest, overriding any conflicting local charter or special act.

Property tax relief for deployed troops

Service members deployed outside the U.S. get an automatic extension on local taxes. It covers real estate taxes on a primary home and personal property taxes on a qualifying vehicle. Taxes come due 90 days after the deployment ends.

Relief after death or serious impairment

If a taxpayer dies or has a medically proven impairment, the law presumes no fault for a late filing or payment. File or pay within 30 days of the due date to avoid penalties. If a guardian or other fiduciary is handling affairs, they have 120 days after they qualify or begin to act. Interest still accrues until the tax is paid.

Tax deadline relief in federal shutdowns

Local governments may let federal workers delay personal property tax payments during a shutdown. This applies to furloughed workers and those working without pay. You must apply. The locality must have an ordinance. Taxes are due no later than 90 days after the federal government reopens.

Itemized bills for business property taxes

If your business owes local taxes on machinery, tools, or other tangible property and a bill includes penalty or interest, the bill must list the tax, the interest, and the penalty separately.

Sponsors & Cosponsors

Sponsor

  • Alfonso H. Lopez

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 191 • No: 33

Senate vote 3/4/2026

Passed Senate

Yes: 39 • No: 0

Senate vote 3/3/2026

Reported from Finance and Appropriations

Yes: 14 • No: 1

Senate vote 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

House vote 2/10/2026

Read third time and passed House

Yes: 68 • No: 30

House vote 2/4/2026

Reported from Finance with amendment(s)

Yes: 20 • No: 2

House vote 2/3/2026

Subcommittee recommends reporting with amendment(s)

Yes: 10 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0239)

    4/6/2026Governor
  2. Approved by Governor-Chapter 239 (effective 7/1/2026)

    4/6/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  4. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  5. Signed by Speaker

    3/12/2026House
  6. Fiscal Impact statement From TAX (3/11/2026 8:55 am)

    3/11/2026House
  7. Bill text as passed House and Senate (HB915ER)

    3/11/2026House
  8. Enrolled

    3/11/2026House
  9. Signed by President

    3/11/2026Senate
  10. Passed Senate (39-Y 0-N 0-A)

    3/4/2026Senate
  11. Read third time

    3/4/2026Senate
  12. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  13. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  14. Rules suspended

    3/3/2026Senate
  15. Reported from Finance and Appropriations (14-Y 1-N)

    3/3/2026Senate
  16. Fiscal Impact statement From TAX (2/17/2026 1:49 pm)

    2/17/2026House
  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 (68-Y 30-N 0-A)

    2/10/2026House
  20. Engrossed by House as amended

    2/9/2026House
  21. committee amendments agreed to

    2/9/2026House
  22. Read second time

    2/9/2026House
  23. Read first time

    2/6/2026House
  24. Reported from Finance with amendment(s) (20-Y 2-N)

    2/4/2026House
  25. Subcommittee recommends reporting with amendment(s) (10-Y 0-N)

    2/3/2026House

Bill Text

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