Civil Liberties Group Calls on Current and Incoming Administrations to Rescind Policy Called Discriminatory and Anti-business
Richmond, VA - The ACLU of Virginia released the following statement in response to the November 8, 2013 Virginia Department of Taxation bulletin concerning treatment of legally married same-sex couples and their employers under Virginia's tax laws.
The following statement is attributed to Claire Guthrie Gastañaga, Executive Director, ACLU of Virginia.

"This bulletin reaffirms the Commonwealth's ongoing hostility toward lesbian, gay, bisexual, and transgender (LGBT) Virginians, including legally married same-sex couples.  Instead of embracing the U.S. Supreme Court decision that found the Defense of Marriage Act unconstitutional, Virginia has signaled its continued opposition to basic fairness by singling out same-sex married couples for discriminatory treatment under state tax laws. The tax department's ruling, which includes no citations to the authority under which it was issued, is inconsistent with federal income tax laws and is in conflict with the state law that requires conformity with federal rules.

The tax department's ruling doubles down on its discriminatory stance toward LGBT Virginians by also penalizing private Virginia businesses that abide by federal tax rules that allow employers the ability to claim a federal tax deduction for fringe benefits to employees' same-sex spouses and dependents.  Under the new policy announced by the tax department, Virginia businesses that utilize the federal tax deduction must adjust their state tax filings to reflect the Commonwealth's refusal to recognize legally married same-sex couples.

It is shameful that Virginia continues to deny equality for LGBT Virginians.  And, in these harsh economic times, it is outrageous that an administration that wants to claim that Virginia is good for business has decided to impose new paperwork and accounting requirements on Virginia businesses.  These requirements will be particularly onerous for small businesses.  No other state has imposed such requirements on businesses.

Virginia is now a national leader in hostility toward LGBT residents. While the federal lawsuit (Harris v. McDonnell) that the ACLU and Lambda Legal have brought to challenge Virginia's laws denying same-sex couples the freedom to marry in Virginia or to have their valid out-of-state marriages recognized ultimately will compel the Commonwealth to end its discriminatory treatment of same-sex couples, neither Virginia residents nor Virginia businesses should have to wait for the federal courts to act to assure them fair treatment under the law.  We call on the current administration - and the incoming administration - to rescind this ill-advised, discriminatory, anti-business policy and adopt a procedure that fulfills Virginia's statutory obligations without imposing additional discriminatory burdens on same-sex couples or Virginia businesses."