[Congressional Record Volume 153, Number 173 (Thursday, November 8, 2007)]
[Senate]
[Page S14199]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WARNER (for himself and Mr. Webb):
  S. 2331. A bill to exclude from gross income payments from the Hokie 
Spirit Memorial Fund to the victims of the tragic event, loss of life 
and limb, at Virginia Polytechnic Institute & State University; to the 
Committee on Finance.
  Mr. WARNER. Mr. President, today I introduce legislation that will, I 
hope, help provide some measure of assistance to those family members 
who lost loved ones and to those who suffered wounds as a consequence 
of the horrific shootings that took place on April 16, 2007, on the 
campus of Virginia Tech. I am pleased to have my colleague from 
Virginia, Senator Webb, as a cosponsor of this legislation.
  In the aftermath of that tragic day, where 32 lives of promise were 
forever cut short, over 20,000 individuals and groups across the 
country demonstrated their support for the victims and their families 
with generous financial donations that totaled approximately $7.5 
million. Virginia Tech established the Hokie Spirit Memorial Fund 
within the Virginia Tech Foundation to accept these charitable 
contributions. The Hokie Spirit Fund distribution plan offers families 
of the 32 individuals who lost their lives a choice of receiving 
proceeds from the Fund or dividing those proceeds between a cash 
payment and a scholarship in the victim's name. Injured victims are 
also eligible for Fund proceeds. On October 30, 2007, the University 
officially distributed these funds to the 79 families and individuals 
in accordance with the protocols established. While no amount of money 
can truly compensate for the loss of life or limb, these payments 
provide both the families of the deceased and the injured survivors 
with some financial resources to help, in some modest way.
  Unfortunately, Federal law is not clear as to whether these payments 
are subject to Federal taxation. In my view, not only does precedent 
indicate that these types of payments should be free of Federal income 
tax, common sense concurs. Accordingly, the legislation that Senator 
Webb and I introduce today makes it clear that any payments by Virginia 
Tech from the Hokie Spirit Fund in conjunction with the April 16, 2007, 
shooting at Virginia Tech should not be taxable for Federal purposes.
  It is my hope that the Congress will expeditiously pass this 
important legislation. I ask for unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2331

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXCLUSION FROM INCOME FOR PAYMENTS FROM THE HOKIE 
                   SPIRIT MEMORIAL FUND.

       For purposes of the Internal Revenue Code of 1986, gross 
     income shall not include any amount received from the 
     Virginia Polytechnic Institute & State University, out of 
     amounts transferred from the Hokie Spirit Memorial Fund 
     established by the Virginia Tech Foundation, an organization 
     organized and operated as described in section 501(c)(3) of 
     the Internal Revenue Code of 1986, as a payment in connection 
     with the tragic event, loss of life and limb, on April 16, 
     2007, at such university.
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