A Virginia tax cut signed last year has gone into effect and will cut the costs of groceries and certain personal hygiene products cheaper.
With the aim of combating the increasing cost of living amid record-high inflation, the law will end the state’s 1.5% sales tax, therefore saving state residents $1.50 for every $100 spent. However, the cut doesn’t totally eliminate taxes on groceries as localities are still allowed to levy a 1% tax.
“We had an extremely successful tax package that was approved and I signed last summer — a $4 billion dollar tax cut package that delivered a great amount of relief for Virginians — but we have more to do. The big step for us is to begin to reduce rates and this is how we’re going to compete with our neighboring states that have been on this path,” Governor Glenn Youngkin said after unveiling his budget proposal to the General Assembly.
Republican Del. Joe McNamara suggested that he may introduce a bill to remove the remaining grocery tax.
“I think the Governor prioritized the best opportunities for the Commonwealth and I support those completely but I think there may be opportunities for some additional relief if revenues allow it,” McNamara said.
Democratic state Sen. Scott Surovell said the money would be better spent on underfunded services like schools.
“I think we have done enough tinkering with tax cuts in the last session and, especially with a recession staring us in the face, we need to stop raiding the General Fund for political reasons,” Surovell said.
ARTICLE: PAUL MURDOCH
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: WAVY.COM
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