House Panel Moves to End Tax Breaks for Confederate-Affiliated Groups

The House of Delegates Finance Committee on Monday by a 12-10 party-line vote advanced legislation that would strip the Virginia Division of the United Daughters of the Confederacy (UDC) and similar organizations of their tax-exempt status in Virginia.

Del. Alex Askew, D-Virginia Beach, presents his House Bill 1699 to the House Finance Committee on Jan. 20, 2025. (Photo by Markus Schmidt/Virginia Mercury)

A similar measure passed both chambers of the legislature last year but was ultimately vetoed by Republican Gov. Glenn Youngkin, who argued it was unnecessary and divisive.

Sponsored by Del. Alex Askew, D-Virginia Beach, House Bill 1699 would remove state recordation tax exemptions and revoke the tax-exempt status of real and personal property owned by a range of Confederate-linked groups.

The panel passed the legislation without discussion Monday, and no representative of the UDC or related group addressed the committee. Askew said in a brief interview after the vote that it is time for Virginia’s tax code to reflect the state’s current values.

“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 said. “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.”

Besides the UDC, the legislation targets groups like 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.

Currently, these organizations benefit from exemptions that allow them to avoid paying certain state and local taxes on property and financial transactions. If the legislation is enacted, these groups would be required to pay taxes like other non-charitable entities.

The UDC reported $10.4 million in net assets and an annual income of $157,988 in its 2022 tax filings, while the Virginia branch alone held $2.1 million in assets and generated $147,897 in income.

The UDC, which labels itself a historical and educational group, has long been criticized for its role in erecting Confederate monuments across the South and promoting a revisionist view of the Civil War.

Askew expressed hope that this year’s effort will yield a different outcome than last year.

“I’m hopeful that the governor will sign it,” he said.“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.”

Askew added that if the bill reaches Youngkin’s desk again, it will give him a chance to demonstrate his stance on organizations like the UDC. “If and when it ultimately passes, which I feel like it will, it’ll be up to him to put his veto pen where his beliefs are,” he said.

by Markus Schmidt, Virginia Mercury

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