Virginia statute

Va. Code Ann. § 18.2-204.3 — Transfers for the sole or primary purpose of obtaining a lower unemployment tax rate; penalty

Current through 2026 Regular Session

Part of Article 7: Miscellaneous False and Fraudulent Acts, Code of Virginia.

Criminal charges under this statute

Transfers for the sole or primary purpose of obtaining a lower unemployment tax rate

Full text of Va. Code Ann. § 18.2-204.3

Statutory text current through the 2026 Regular Session. This publication reproduces the text of the Code of Virginia from the official Virginia Law Portal API published by the Virginia General Assembly's Division of Legislative Automated Systems; it is not the official Code of Virginia.

Va. Code Ann. § 18.2-204.3Primary source, current through the 2026 Regular Session

A. Any person who transfers or attempts to transfer any trade or business to another person, where the sole or primary purpose of the transfer is to obtain a lower unemployment tax rate, is guilty of a Class 1 misdemeanor. B. Any person who knowingly advises another person to transfer any trade or business to another person where the sole or primary purpose of the transfer is to obtain a lower unemployment tax rate, is guilty of a Class 1 misdemeanor. C. Any person who is found guilty of more than two such actions under subsections A or B is guilty of a Class 6 felony. D. It shall be the duty of the attorney for the Commonwealth to whom the Commission shall report, pursuant to subsection B of § 60.2-500 , any violation of this section, to determine whether to proceed with prosecution.

Official sources

Official section text (law.lis.virginia.gov)

Legal terms used in this section

Questions this section answers

Is transfers for the sole or primary purpose of obtaining a lower unemployment tax rate a felony or a misdemeanor in Virginia?

It depends on the circumstances: transfers for the sole or primary purpose of obtaining a lower unemployment tax rate ranges from a class 1 misdemeanor to a class 6 felony in Virginia under Va. Code Ann. § 18.2-204.3.

Transfer for lower unemployment tax rate: class 1 misdemeanor (Va. Code Ann. § 18.2-204.3A) · Advising transfer for lower unemployment tax rate: class 1 misdemeanor (Va. Code Ann. § 18.2-204.3B) · Repeat offense - more than two violations: class 6 felony (Va. Code Ann. § 18.2-204.3C)

Which Virginia statute covers transfers for the sole or primary purpose of obtaining a lower unemployment tax rate?

Transfers for the sole or primary purpose of obtaining a lower unemployment tax rate is governed by Va. Code Ann. § 18.2-204.3 (Transfers for the sole or primary purpose of obtaining a lower unemployment tax rate; penalty).

This reference is informational and is not legal advice.