A BILL to amend and reenact §§ 58.1-603.1, as it is currently effective and as it may become effective, 58.1-603.2, 58.1-604.01, as it is currently effective and as it may become effective, 58.1-605.1, 58.1-606.1, and 58.1-611.1 of the Code of Virginia, relating to sales and use tax; food purchased for human consumption and essential personal hygiene products.
HB13 revises Virginia’s sales and use tax statutes to exempt food purchased for human consumption and essential personal hygiene products from certain state and local sales and use taxes. The bill amends the general exemption statute to provide that, beginning July 1, 2026, no tax may be imposed under the chapter, or under any authority granted by it, on qualifying food and hygiene products, with definitions tied to federal food-assistance rules and specific hygiene items such as diapers and menstrual products. It also updates related provisions so that existing special local taxes and regional taxes generally do not apply to these exempt items.
The bill also makes conforming changes to several special tax provisions. It preserves the structure of certain regional sales and use taxes in planning districts and the Historic Triangle, but clarifies that those taxes do not apply to the exempt food and hygiene products. It leaves in place the school-construction local option sales and use taxes, while similarly excluding the exempt items from those levies. In addition, the bill updates revenue distribution language so that, after the exemption takes effect, the Commonwealth will continue to allocate amounts that would otherwise have been collected on these items to cities and counties under the existing distribution formulas.
HB13 would materially reduce the tax base for state and local sales and use taxes by removing tax from groceries and essential personal hygiene products starting July 1, 2026. It would amend §§ 58.1-603.1, 58.1-603.2, 58.1-604.01, 58.1-605.1, 58.1-606.1, and 58.1-611.1 of the Code of Virginia, affecting both statewide tax administration and several special-purpose local tax regimes. The bill would also require conforming changes to revenue allocation mechanisms so localities and special funds are treated consistently after the exemption takes effect.
The available legislative history suggests the bill had limited momentum and did not advance beyond committee subcommittee consideration, ending with a voice-vote continuation to the next session in Finance. That posture indicates the proposal was at least discussed seriously enough to be referred and heard, but not enough consensus existed for immediate passage. The bill’s sponsor list suggests some bipartisan or cross-faction interest in tax relief for necessities, but the lack of recorded votes or supportive committee action points to an unresolved or cautious reception.
The main point of contention is fiscal: exempting food and essential hygiene products would reduce sales tax revenue for the Commonwealth and for localities that rely on those receipts, including jurisdictions funding transportation, tourism, and school capital projects. Another likely issue is the breadth and timing of the exemption, since the bill applies broadly to all taxes imposed under the chapter and requires conforming adjustments to multiple special tax districts and funds. Supporters would likely emphasize consumer relief and affordability for necessities, while opponents or cautious members would focus on revenue loss, administrative complexity, and the effect on dedicated local funding streams.