The House of Delegates Finance Committee adopted legislation on Monday by a vote of 12-10 along party lines. This proposal would strip the Virginia Division of the United Daughters of the Confederacy (UDC) and other organizations of their tax-exempt status in the state of Virginia.
In the previous year, a proposal that was quite similar to this one was approved by both houses of the legislature; however, Republican Governor Glenn Youngkin finally decided to veto it because he believed it was both unneeded and divisive.
Representative Alex Askew, a Democrat from Virginia Beach, is the sponsor of House Bill 1699, which would require the removal of state recordation tax exemptions and the revocation of the tax-exempt status of real and personal property owned by a variety of organizations with ties to the Confederacy.
Monday, the committee unanimously approved the measure without any debate, and there was not a single person from the UDC or any other affiliated group that addressed the committee. In a brief interview that took place after the vote, Askew stated that it is time for the tax law of Virginia to reflect the ideals that are currently held by the state.
“Last year, we saw a few people come and speak for members on behalf of the UDC, but to me, it’s a good policy, “Askew stated. “It’s not that we’re looking to take away anybody’s right to exist at all, but I think our code should match our values in Virginia.”
The Confederate Memorial Literary Society, the Stonewall Jackson Memorial, Incorporated, the Virginia Division of the Sons of Confederate Veterans, and the J.E.B. Stuart Birthplace Preservation Trust, Inc. are among the organizations that the legislation targets in addition to the UDC.
These organizations now enjoy exemptions from paying some state and municipal taxes on financial transactions and real estate. These organizations would have to pay taxes like other non-charitable organizations if the law were to pass.
While the Virginia branch alone owned $2.1 million in assets and earned $147,897 in income, the UDC recorded $10.4 million in net assets and $157,988 in annual income in its 2022 tax filings.
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The UDC has long been attacked for its involvement in pushing a revisionist interpretation of the Civil War and constructing Confederate monuments throughout the South, despite calling itself a historical and educational organization.
“I hope that this year’s effort will produce a different outcome than last year,” Askew said.
“I’m hopeful that the governor will sign it,” he stated.”I think it’s an opportunity for him to really show what he believes the future of the commonwealth should be, where we currently are, or what our future looks like.”
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Youngkin will have an opportunity to show his position on groups like the UDC if the measure makes it back to his desk, Askew continued. “It’ll be up to him to put his veto pen where his beliefs are,” he stated, if and when it finally passes, which I believe it will.