The legislation, introduced by Sen. Adam Ebbin (D-30), passed the state Senate Jan. 20 by a unanimous 38-0 vote — the Senate is missing two votes until new Lt. Governor Ralph Northam and Attorney General’s Mark Herring’s seats are filled via special election — and is waiting to be considered by the House of Delegates Finance Committee.
As of January 2013, the state started only doling out tax rebates via direct deposit or a debit card, which comes with associated costs, like ATM and transaction fees. The Senate Finance Committee voted to abolish the debit card option altogether if the bill is signed into law.
“Taxpayers deserve the convenience of receiving their refunds in the form they prefer,” Ebbin said in a press release after the bill passed the Senate. “By contrast, the debit card system was fraught with fees and was not consumer-friendly. Taxpayers were even charged for withdrawing funds from an in-network ATM. I’m glad the Senate recognizes the need for reform.”
The bill states that, if the taxpayer doesn’t indicate which payment method he prefers between direct deposit and a mailed check, a check will be mailed to the provided address. If the bill passes, it would go into effect for taxes collected this year, meaning taxes filed by April 15, 2015.
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