Governor Bob McDonnell established the Governor's Commission on Government Reform and Restructuring by executive order on the day he took office, on January 16, 2010. In December 2010, members submitted an interim report that includes more than 100 ideas to streamline government which could potentially save the state $100 millions every year.
At Governor McDonnell's request, Senator Walter Stosch is supporting legislation that would transfer three types of tax collections to the Department of Taxation.
Right now, the State Corporation Commission is in charge of collecting the gross premiums tax paid by insurance companies. The Wireless E-911 Service Board collects a tax for 911 services paid by cell phone companies and the Department of Motor Vehicles collects the motor vehicle rental tax.
"The Department of Taxation can collect those taxes efficiently." said Stosch. "For efficiency's sake and for the sake of putting as much teeth in collections as possible, let's put it all in the Department of Taxation, which is logical."
The legislation is:
SB 1123 Wireless E-911 Surcharge: Requires that all E-911 surcharges collected from customers be remitted to the Department of Taxation rather the Wireless E-911 Services Board.
SB 1124 Memorandum of Understanding Between Department of Taxation and SCC: This bill facilitates the transfer of the administration between the Department of Taxation and the State Corporation Commission in order to transfer the responsibility for processing insurance premium tax returns.
SB 1132 Motor Vehicle Tax: Removes the administration and collection of the motor vehicle rental tax from the Department of Motor Vehicles and transfers it to the Department of Taxation.