Tourism

• SB 1193 (Norment)/HB 2285 (James) – Tourism Development Grant Program (TDGP). The DRCC actively supported this bill, which allows certain locally endorsed tourism projects to temporarily retain a portion of state and local tax revenue generated from the project, combined with a matching contribution from the developer, to provide gap financing for the project. We were very pleased that these bills were successfully passed to enable large local tourism projects to proceed that otherwise, may not have been possible. (Updated 03/2011)
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  HB 1837 (Garrett)/SB 1264 (Vogel) – Virginia Winery and Vineyard Development Tax Credit - $250,000. This bill establishes a refundable tax credit program to incentivize vineyard establishment and winery expansion, and was among the DRCC’s priorities. We were very pleased that the bills were passed with relative ease, and the related funding was included in the final budget. (Updated 03/2011)
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  HB 1979 (Greason) – Alcoholic Beverage Control; tax on wine and other alcoholic beverages; exceptions. The DRCC also supported this bill, which seeks to eliminate a situation where an important segment of the business community, Virginia wineries, are subjected to the same tax twice. Wineries are subject to the tax laws of the states they ship into and pay all appropriate excise taxes in the receiving states. Under the current framework Virginia wineries are also paying the excise tax in Virginia: resulting in paying the same tax twice. This bill addresses this situation. It was approved by the House and the Senate, and is now before the Governor for his consideration. (Updated 03/2011)
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  SB 972 (Whipple) – Retail sales and transient occupancy taxes on room rentals. The DRCC included this bill among its list of priorities, joining a coalition of hoteliers from across the state. This bill would have provided that retail sales and hotel taxes on transient room rentals be computed based upon the total charges or the total price paid for the use or possession of the room. For those cases in which a hotel or similar establishment contracts with an intermediary to facilitate the sale of the room and the intermediary charges the customer for the room and such facilitation efforts, the bill would have required the intermediary to separately state the taxes on the bill or invoice provided to the customer and to collect the taxes based upon the total charges or the total price paid for the use or possession of the room. While this legislation moved through the Senate with relative ease, due to numerous concerns, including assertions that this would equate to a “tax increase” for consumers, a House Finance subcommittee recommended that this bill be laid on the table. (Updated 03/2011)