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Washington, DC: President Bush today signed into law legislation authored by Congressmen Rick Boucher and Bob Goodlatte which will exempt from federal income tax payments made from the Hokie Spirit Memorial Fund to victims of the Virginia Tech tragedy and their family members.
“The Hokie Spirit Memorial Fund was established through the generous contributions of thousands of individuals who desired to assist the victims of this tragedy during their time of greatest need. I am pleased that as a result of today’s bill signing payments made to victims of the Virginia Tech tragedy and their family members will now be exempted from federal income tax payments,” said Boucher.
In the days immediately following the tragedy of April 16, 2007, there was a spontaneous outpouring of support across the nation for the Virginia Tech community, including substantial financial contributions. The university established the Hokie Spirit Memorial Fund (HSMF) as the vehicle to accept these donations, and earlier this fall, Virginia Tech distributed nearly $7 million from the fund to the families of the 32 deceased victims and 47 injured students.
To prevent these payments from possibly being reduced by federal taxes, Congressmen Boucher and Goodlatte introduced legislation to specifically exempt payments made from the Hokie Spirit Memorial Fund from federal income taxation. The legislation was approved overwhelming by the House of Representatives earlier this month, and the identical legislation introduced by Senators John Warner and Jim Webb was approved in the U.S. Senate. With the President’s signature today, the measure has now become law.
“Following the horrific events that unfolded on the campus of Virginia Tech earlier this year, the University acted immediately to establish the Hokie Spirit Fund, to assist the families of the victims,” said Goodlatte. “Unfortunately, it has become apparent that the funds these families received will become significantly reduced because of federal taxes. These are funds some families desperately need to pay medical bills, funeral costs, and to simply rebuild their lives. I am pleased that the President has signed this important legislation into law, which ensures these families will not have to worry about an additional tax burden.”
“The tragedy which occurred earlier this year was of a scale and senselessness which defied explanation. While the Virginia Tech community has taken major strides in the recovery and healing process, the victims and families who suffered direct loss still have many needs. Today’s action removes an unnecessary tax burden for those affected most directly by the tragedy, and I applaud the President for signing this needed measure into law,” Boucher concluded.
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