RICHMOND, Va. – House Bill 233, which increases the state income tax subtraction for currently serving members of the Virginia National Guard, stalled in the House of Delegates Appropriations Subcommittee for Compensation and Retirement yesterday, Feb. 3, 2022.
“Everyone agrees that it’s a good bill,” said Andrew J. Czaplicki, VNGA president. “There just happens to be a cost to the state’s bottom line—the appropriators just weren’t comfortable moving forward yet.”
Delegate Bobby Orrock (R-54) sponsored the legislation and masterfully led its unanimous passage through the House of Delegate’s Finance Committee on Jan. 19, 2022.
The original benefit was solidified in Virginia’s code in 1994. At the time the General Assembly approved a generous $3,000 state income tax subtraction for currently serving members of the Virginia National Guard. Nearly 28 years later, the VNGA, in collaboration with over 20 Veterans Service Organizations through the Dept. of Veterans Services’ Joint Leadership Council, are advocating for a refresh of the bill.
House Bill 233 increases the state tax subtraction from $3,000 to $5,000.
“We did indexed the proposed tax subtraction amount against historical inflation and came up with $4,800 and rounded up to keep things clean,” Czaplicki explained. “This increase would equate to about $100 in lost revenues per Guardsmen.”
Another unique provision of the bill removes the established cap on the subtraction. Currently, the tax subtraction benefit only applies to those Soldiers and Airmen in the grade of O-3 and below. Field Grade and Flag Officers are prohibited from using the benefit.
H.B. 233 moves the cap to O-6 to encourage competition and retention among mid-to-senior level leadership, Czaplicki explained.
The House of Delegates Appropriations Subcommittee for Compensation and Retirement meets weekly on Thursdays at 4:00 p.m. and will consider passage of the presented H.B. 233 during their next meeting.
Members and families of the Virginia National Guard, the VNGA, the Virginia National Guard Enlisted Association, and members of the general public are encouraged to contact their delegates and advocate for the passage of H.B. 233.
The association aims to educate and inform members of the General Assembly to assist with their formulation, debate and ultimate vote to enact these changes. The VNGA’s powerful advocacy platform is available here and simplifies the communication process.
Reporters, Editors & Producers: Leaders are available for interviews or to appear as subject matter experts on issues related to the Virginia National Guard Association. Email contact@vnga.us to schedule an interview or appearance.
About VNGA: Established in 1960, the Virginia National Guard Association is a recognized non-profit non-partisan 501(c)(19) veterans’ service association representing over 10,000 Service Members of all ranks and status; enlisted, warrant and officer; traditional, active duty and retired.
House Bill 233, which increases the state income tax subtraction for currently serving members of the Virginia National Guard, stalled in the House of Delegates Appropriations Subcommittee for Compensation and Retirement yesterday, Feb. 3, 2022.