Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, August 12, 1994 TAG: 9408120084
SECTION: VIRGINIA PAGE: A7 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Short
Cranwell, D-Roanoke County, criticized the state Department of Taxation for trying to correct the problem by taking actions not authorized in legislation that spells out terms of the $340 million settlement with 186,000 federal pensioners.
By going beyond its statutory authority, Cranwell said, the department opened the door for a possible legal challenge of the settlement. He said if the attorney general's office could not assure him the state has a 90 percent chance of winning such a lawsuit, lawmakers should return to Richmond and rewrite the legislation.
He said legislators should know by next week whether they will need to reconvene.
The problem stems from records provided by the Department of Defense on about 80,000 military retirees' pensions for the disputed tax period of 1985-1988. The pension amounts reported for each year except 1985 are incorrect.
State Tax Commissioner Danny Payne said he wants to send a letter to military retirees to fix the problem administratively. Cranwell said the letter is not authorized by the legislation.
Keywords:
GENERAL ASSEMBLY 1994
by CNB