As inflation continues to affect consumers, Virginia hopes to give residents a little bit of relief by cutting taxes on groceries and certain personal hygiene products. Beginning on Jan. 1, the tax will decrease from 2.5 percent to 1 percent.
Gov. Glenn Youngkin signed the tax cut into law in June as part of the state’s budget. Lawmakers agreed to appeal the 1.5 percent state tax on groceries, leaving the 1 percent option for local governments. Residents should see a $1.50 savings for every $100 spent.
In addition to groceries, the 1.5 percent cut applies to personal hygiene products, like menstruation products such as pads and tampons. It’s estimated that the average person that menstruates spends an extra $100 to $225 in taxes throughout their lives.
Items that do not qualify for the tax cut are alcoholic beverages, tobacco, seeds and plants used to grow food or prepared hot foods.
Youngkin had initially hoped to repeal both the state and local tax, but lawmakers agreed to keep the 1 percent tax that goes to local municipalities in place. Cities and counties across the state were relieved to keep the revenue.
“Cities and counties across Virginia fund public schools, police, fire, and road maintenance with proceeds from the 1 percent tax on grocery sales,” said the City of Falls Church in a statement to Patch. “In Falls Church, the grocery tax generates $1.9 million per year for these core services.”
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