Statement of Governor Kaine on Approval of Amendments to HB 5019, Estate Tax Repeal and Open Space Preservation

Statement of Governor Kaine on Approval of Amendments to HB 5019, Estate Tax Repeal and Open Space Preservation

RICHMOND - Governor Timothy M. Kaine issued the following statement upon General Assembly approval of the Governor's amendments to House Bill 5019, which repealed Virginia's estate tax and modified the Commonwealth's land conservation tax credit program.

The estate tax, which is levied posthumously on large estates, will be repealed on July 1, 2007. Within the same legislation, the General Assembly agreed to cap tax credits the state allows for conservation easements, and placed limits on credits for land outside of the Chesapeake Bay watershed in Southwest and Southside Virginia. Generally, the Governor's amendments established a higher cap, increased accountability within the tax credit program, and removed a regional disparity in how those credits are applied.

"I applaud lawmakers for repealing Virginia's estate tax. This action protects family-owned small businesses and farms, and helps keep the Commonwealth competitive with more than two-dozen other states that have already taken this action," Governor Kaine said.

"The conservation tax credit program helps us preserve natural resources and improve air and water quality. I am pleased that the General Assembly accepted our amendments so that incentives are only granted for the preservation of environmentally meaningful land. In addition, for budgeting purposes, it is important that the program's fiscal impact be predictable. The legislation adopted by lawmakers today balances these goals."

http://www.governor.virginia.gov/MediaRelations/NewsReleases/viewRelease.cfm?id=224