Virginia could lose $370 million under new federal law

146,244,00 -- Total tax returns received for individual income tax returns in fiscal year 2012

RICHMOND, Va. – Virginia's finance secretary says the state would lose $370 million in income tax revenue if taxpayers are allowed to treat deductions differently on state and federal tax returns under new federal law.

The Richmond Times-Dispatch reports that Finance Secretary Aubrey Layne outlined the issue in a written presentation to the Senate Finance Committee Thursday.

If the state doesn't conform to Tax Cuts and Jobs Act changes, Layne says taxpayers face new forms reflecting 20 adjustments for individuals and 30 for businesses. He wants legislators to conform the tax codes and consider future changes.

Gov. Ralph Northam has estimated a $594 million windfall. Republican legislators warned of state tax increases for middle-income families, but the Northam administration countered that most would benefit from a proposed full earned income tax credit refund.