Bill > SJR38

This joint resolution directs the Virginia Department of Taxation to prepare a report on how local governments in Virginia tax the craft beer industry. The resolution highlights that Virginia's craft beer industry is a significant contributor to the state's economy, providing jobs and supporting agriculture. It notes that local governments have the authority to levy certain business taxes on these companies, but the inconsistent or unclear application of these taxes can negatively impact craft breweries, which are often small businesses operating on tight margins. The report will specifically examine the authority of local governments to impose taxes such as the Business Professional Occupational License Tax (a tax on gross revenue), the Machinery and Tools tax, and the Food and Beverage Tax on various aspects of craft beer operations, including manufacturing, sales, and even sales by third-party food vendors at breweries. The Department of Taxation will gather information from local tax officials, industry representatives, and other relevant parties, and will ultimately recommend whether new laws, administrative guidance, or better coordination between state and local tax authorities are needed to ensure consistent and fair taxation of this growing industry.

Justice

https://lis.virginia.gov/bill-details/20261/SJ38