Bill > HB13

This bill eliminates the remaining one percent local sales and use tax on food purchased for human consumption and essential personal hygiene products beginning July 1, 2026. Currently, these products are subject to a reduced sales tax rate, but the bill will completely remove the tax on these items. To compensate local governments for the lost revenue, the bill requires an equivalent amount of money to be distributed monthly to cities and counties based on their pro rata share of total sales and use tax collections. The bill defines "food purchased for human consumption" using federal food stamp guidelines, excluding prepared foods and seeds, and defines "essential personal hygiene products" to include items like diapers, incontinence products, menstrual products, and similar items. By removing this tax, the legislation aims to reduce the financial burden on consumers for basic necessities while ensuring local governments continue to receive comparable funding through an alternative distribution mechanism.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB13