Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, September 26, 1993 TAG: 9309260058
SECTION: VIRGINIA PAGE: B-3 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
The date for oral arguments was set in a recent meeting among Alexandria Circuit Judge Donald H. Kent and lawyers for both sides.
The U.S. Supreme Court ruled in June that Virginia's federal pensioners might be eligible for refunds of state taxes on their benefits that the high court had declared unconstitutional four years earlier.
But the June ruling left it to the state courts to decide whether and how much the retirees would collect.
The state, already facing a potential $500 million shortfall in 1994-96, could be forced to refund about 200,000 federal retirees as much as $489 million plus interest. But many expect any final award to be less than that amount and to be phased in to ease the burden on the state.
George Allen, the Republican candidate for governor, has accused his Democratic opponent, Mary Sue Terry, of mishandling the matter when she was state attorney general.
"The fact that the issue will be highlighted right before the end of the campaign, pointing out that Mary Sue Terry . . . did not do her job, obviously helps to clarify the issue for a lot of folks," Allen spokesman Jay Timmons said.
Tom King, a consultant for the Terry campaign, dismissed allegations that Terry mishandled the case.
Allen knew about the issue as a state legislator, King said. "If George was so concerned about this, why didn't he offer something?"
Gov. Douglas Wilder has directed his staff to work toward a settlement.
Allen also favors talks toward a settlement, while Terry and her successor, Attorney General Stephen D. Rosenthal, say Virginia should fight any refunds in court.
by CNB