Virginia Constitution ARTICLE X - Taxation and Finance
Here is a summary of Article X - Taxation and Finance of the Virginia Constitution:
Virginia Constitution – Article X: Taxation and Finance
Purpose:
This article outlines the rules and principles governing taxation, state finances, and public debt in Virginia.
Key Sections and Provisions:
Section 1 – Taxation must be uniform
Taxes must be uniform across similar classes of property within the same jurisdiction.
The General Assembly can define property classes and set different tax rates for each, as long as the classifications are reasonable.
Section 2 – Assessment and taxation of property
All property is subject to taxation unless specifically exempted.
Tangible personal property used in agriculture, business inventory, and certain household goods may be taxed differently.
Land-use value assessment is allowed for agricultural, horticultural, forest, and open-space land.
Section 3 – Exemptions from taxation
Property owned by the state, political subdivisions, churches, and non-profits (e.g., educational, charitable) may be exempt.
The General Assembly determines exemptions by general law.
Exemptions for veterans and elderly/disabled individuals may also be granted.
Section 4 – Limitation on state debt
The state may only incur debt for specific purposes: capital projects, emergencies, or revenue anticipation loans.
Debt must be approved by the General Assembly and often by voters.
Total debt is limited as a percentage of state income.
Section 5 – Revenue bills
All bills to raise revenue must originate in the House of Delegates.
Section 6 – Appropriations and balanced budget
The General Assembly must adopt a balanced budget: expenditures cannot exceed revenues.
Appropriations must be specific and cannot be changed without legislative approval.
Section 7 – State Treasury and funds
All revenues must be deposited into the state treasury and used only as appropriated.
A reserve fund must be maintained for fiscal emergencies.
Section 8 – Auditor of Public Accounts
The Auditor conducts financial audits of state agencies and reports findings to the General Assembly and Governor.
Summary Insight:
Article X ensures fiscal responsibility, transparency, and fairness in taxation. It provides flexibility for localities and the General Assembly to manage taxes and exemptions while enforcing limits on state debt and spending to maintain a balanced budget.
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