Local Tax Issues

Virginia Sales Tax Holiday Weekend Officially Ending

Virginia Sales Tax Holiday Weekend Officially Ending

Virginia's popular sales tax holiday weekend is officially ending as of July 1, 2023. 

Local news network WAVY 10 reports that the annual program was cut as part of the state's 2022 Appropriation Act and has not been renewed by the Virginia legislature. In 2015, the three-day sales tax-free weekend was expanded to provide savings on hurricane preparedness products, back-to-school items. and Energy Star and WaterSense-rated appliances. Savings were valid online and in-person.

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Credit: Luis Alvarez/Getty Images

Most of the state has a standard sales tax rate of 5.3% so the savings added up for many families, especially those buying big-ticket items. 

Virginia allows counties and municipalities to charge an additional sales tax on top of the state tax. 

WAVY shared thoughts from Delegate Barry Knight, (R-Virginia Beach), chair of the House Appropriations Committee, “Nobody for the last two years has put in legislation to fix this. Last year it was temporarily fixed in the budget. It will not happen this year because nobody put in the legislation and the old legislation had a sunset clause."

Knight is one of three state legislators who oversee negotiating the state budget but he stated that an amendment to extend the sales tax holiday would need to come from a member of the Finance Committee. 

The Virginia Department of Taxation notes that the state's last sales tax-free weekend took place from Friday, August 5 to Sunday, August 7, 2022. The program has existed since 2006. 

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Credit: Tom Werner/Getty Images

There are mixed feelings on the overall political policy surrounding sales tax holidays.

A Tax Foundation article notes that "if a state must offer a “holiday” from its tax system, it is an implicit recognition that the tax system is uncompetitive. If policymakers want to save money for consumers, they should cut the sales tax rate year-round."

In 2022, 17 U.S. states had sales tax-free days or weekends. 

What do you think about Virginia ending it's sales tax holiday?

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Feature Image Credit: Oscar Wong/Getty Images

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Rebekah Barton

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