Ends Local Sales Tax on Groceries

Virginia · HB703 · Introduced Jan 13, 2026

Why it matters

Shoppers in covered areas would pay less sales tax on groceries and hygiene items. Local transit and tourism funds would bring in less money from those purchases.

What it does

  • Keeps food for people to eat and basic hygiene products free of added regional sales taxes
  • Applies to the regional transit taxes in certain Northern Virginia and Hampton Roads areas
  • Applies to the 1% Historic Triangle sales and use taxes in Williamsburg and James City and York counties
  • Sets out how the Historic Triangle tax money is split between marketing and local groups

Status

Latest action (2026-07-21): Continued from last session

About this bill

Would end the remaining one percent local sales tax on food and essential hygiene products starting January 1, 2027. Cities and counties would get equal revenue each month instead.

AI draft

Perspectives

💬 The case for

Groups focused on household costs would likely say lower grocery taxes help families. Some shoppers would likely say the change cuts everyday expenses.

💬 The case against

Transit and tourism groups would likely say they would lose funding. They may argue the exemption shrinks money for local services.

Sponsored by

Sponsor details for this state bill are at the source link.

News

Loading coverage…