[Congressional Record Volume 165, Number 196 (Monday, December 9, 2019)]
[House]
[Pages H9364-H9366]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
VIRGINIA BEACH STRONG ACT
Ms. SEWELL of Alabama. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 4566) to accelerate
[[Page H9365]]
the income tax benefits for charitable cash contributions for the
relief of the families of victims of the mass shooting in Virginia
Beach, Virginia, on May 31, 2019.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4566
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Virginia Beach Strong Act''.
SEC. 2. SPECIAL RULES FOR CONTRIBUTIONS FOR RELIEF OF THE
FAMILIES OF THE MASS SHOOTING IN VIRGINIA
BEACH.
(a) Clarification That Contribution Will Not Fail To
Qualify as a Charitable Contribution.--A cash contribution
made for the relief of the families of the dead or wounded
victims of the mass shooting in Virginia Beach, Virginia, on
May 31, 2019, shall not fail to be treated as a charitable
contribution for purposes of section 170 of the Internal
Revenue Code of 1986 merely because such contribution is for
the exclusive benefit of such families. The preceding
sentence shall apply to contributions made on or after May
31, 2019.
(b) Clarification That Payments by Charitable Organizations
to Families Treated as Exempt Payments.--For purposes of the
Internal Revenue Code of 1986, payments made on or after May
31, 2019, and on or before June 1, 2021, to the spouse or any
dependent (as defined in section 152 of such Code) of the
dead or wounded victims of the mass shooting in Virginia
Beach, Virginia, on May 31, 2019, by an organization which
(determined without regard to any such payments) would be an
organization exempt from tax under section 501(a) of such
Code shall--
(1) be treated as related to the purpose or function
constituting the basis for such organization's exemption
under such section; and
(2) shall not be treated as inuring to the benefit of any
private individual,
if such payments are made in good faith using a reasonable
and objective formula which is consistently applied with
respect to such victims.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Alabama (Ms. Sewell) and the gentleman from Nebraska (Mr. Smith) each
will control 20 minutes.
The Chair recognizes the gentlewoman from Alabama.
General Leave
Ms. SEWELL of Alabama. Mr. Speaker, I ask unanimous consent that all
Members have 5 legislative days to revise and extend their remarks and
include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Alabama?
There was no objection.
Ms. SEWELL of Alabama. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in strong support of the Virginia Beach
Strong Act, a bill authored by my friend and colleague from Virginia,
Congresswoman Elaine Luria, to ensure that donations to the victims of
the Virginia Beach shooting are tax deductible.
Mr. Speaker, the Virginia Beach community experienced unspeakable
tragedy earlier this year when a mass shooting at the Virginia Beach
Municipal Center resulted in the deaths of 12 people.
In the face of this terrible tragedy, leaders throughout the city
came together and quickly established a fund to support victims,
survivors, and their families. The outpouring of support from the
community was profound, with over $4 million in donations to the fund.
Mr. Speaker, unfortunately, these donations are arguably not
considered tax deductible charitable contributions because they are
divided among specified individuals rather than an organization. A
technical fix in the Tax Code would address this issue. This
legislation before us today would fix this issue for the Virginia Beach
Tragedy Fund and ensure that these donations are tax deductible.
While nothing can reverse the pain of this terrible tragedy, the
bipartisan, commonsense bill before us today is an important step
toward helping the victims and their families and incentivizing further
contributions to the fund. I am proud to stand with the Virginia Beach
community in support of this legislation.
Mr. Speaker, I urge all of my colleagues to support this important
legislation, and I reserve the balance of my time.
Mr. SMITH of Nebraska. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, as we know, a senseless act of violence struck the
Virginia Beach community on May 31 of this year. A disgruntled city
employee, for no apparent reason other than he may have been offended
by some negative reviews of his job performance, walked into a public
works building in Virginia Beach an hour before closing and opened fire
on innocent and defenseless people, killing 12 and injuring 6 others.
These kinds of events are hard to understand, but it is great to see
the community reach out and help. We know that there are always many
folks who help around these communities when it is so obvious, and,
when confronted with tragedy, they always respond with bravery and
generosity.
In acknowledging the bravery of helpers, we would be remiss if we do
not honor the first police officers who arrived on the scene, who ran
toward danger instead of away from it. They took down the mass murderer
before he could cause even more bloodshed. In the process, one of their
own was injured in the firefight, his life spared only by a bulletproof
vest.
The bill we are considering and, hopefully, passing today is about
another set of those who helped, those who also responded with
generosity.
As was the case with many other tragic events in our history, a
special fund was set up to help the victims of the May 31 shooting.
Under normal tax rules, a special fund like this raises at least three
questions:
First, are the payments to these victims from the special fund
subject to taxes?
Second, since charities are not supposed to operate for the benefit
of special individuals, would payments to a relatively small number of
individuals destroy the tax-exempt status of any charity or foundation
administering the victims' fund?
And third, are donations to the special fund for victims eligible for
a charitable tax deduction?
The Virginia Beach Strong Act ensures the answers to these questions
match what common sense tells us they should be:
No, victims of the Virginia Beach shooting and their families will
not be taxed on these payments to provide some financial relief for the
harm caused by horrors they suffered.
No, these payments will not threaten the tax-exempt status of
organizations which make the payments to victims and their families.
And, lastly, yes, donations to the Virginia Beach Tragedy Fund will
be eligible for the charitable tax deduction.
Mr. Speaker, this is our opportunity to be assisting those who need
help, as well as by clarifying the tax questions of victims, donors,
and charitable organizations. This should be actually considered as a
no-brainer.
Mr. Speaker, I urge my colleagues to support the Virginia Beach
Strong Act, and I reserve the balance of my time.
Ms. SEWELL of Alabama. Mr. Speaker, I yield 5 minutes to the
gentlewoman from Virginia (Mrs. Luria).
Mrs. LURIA. Mr. Speaker, today I rise in support of my bipartisan and
bicameral bill, H.R. 4566, the Virginia Beach Strong Act.
Just over 6 months ago, our Virginia Beach community suffered a
devastating tragedy. On May 31, 12 wonderful people lost their lives in
a mass shooting in the Virginia Beach Municipal Center.
During our great city's darkest hour, we showed the world the
strength and resolve that makes us Virginia Beach Strong. We saw first
responders heroically running into building 2, sacrificing their safety
to save others; doctors working long hours to provide victims with
expert care; and many other displays of courage.
May 31, 2019, was a day that will change Virginia Beach forever. We
will always remember the 12 individuals we lost that day and their
irreplaceable contributions to our Virginia Beach Strong community. My
heart continues to grieve for those who lost their lives, their
families, and everyone who loved them.
Today, many families of the victims are still facing financial
hardships related to the shooting, in addition to the unfathomable loss
of a loved one.
[[Page H9366]]
In the aftermath of May 31, the city of Virginia Beach established a
fund to help victims, survivors, and their families. Unfortunately, a
technicality in the Tax Code means that these donations will likely not
be considered tax deductible. That is why I introduced the Virginia
Beach Strong Act.
The Virginia Beach Strong Act would make it easier to help bring
urgently needed support to our community's grieving families. This
bipartisan bill would ensure that all donations made to immediate
family members of the victims on or after May 31 will be considered tax
deductible. It is narrowly written so it does not make any broader
changes to our Tax Code or to the nonprofit status.
Today, we all have the opportunity to make a profound difference for
the families that have been through unimaginable pain following the
Virginia Beach mass shooting.
Mr. Speaker, I want to thank my colleagues in the Virginia delegation
for their support, and I urge all of my colleagues to vote for H.R.
4566, the Virginia Beach Strong Act.
Mr. SMITH of Nebraska. Mr. Speaker, just to add emphasis to the
reason why we are here: We appreciate those around the community and,
actually, probably around the country who want to help, certainly,
victims in need, and I would hope that we would adjust our tax policy
accordingly, certainly to perhaps meet expectations that could not
otherwise be met, but also to encourage others to contribute as well.
Mr. Speaker, I yield back the balance of my time.
Ms. SEWELL of Alabama. Mr. Speaker, in closing, we must take action
to fix the tax deductibility of these donations to the Virginia Beach
Tragedy Fund, which has done so much to help the community recover from
this unspeakable tragedy.
Mr. Speaker, I wish to express my profound condolences and also
congratulate Mrs. Luria on this wonderful piece of legislation that
will truly benefit those who were tragically lost and their families,
as well as first responders.
Mr. Speaker, I urge every Member to support this important
legislation. It is truly bicameral and bipartisan and deserves to pass.
I support this legislation.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Alabama (Ms. Sewell) that the House suspend the rules
and pass the bill, H.R. 4566.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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