Virginia proposal describes taxes on services and transportation fees

The proposal describes a 4.3 percent state sales tax on listed services and tangible personal property. The provisions describe a tax on sellers and providers of listed services or property sold or used in Virginia. Listed services include personal care, home repairs, pet care, delivery, storage, and digital subscriptions. The text exempts specified professional services, internet access, and residential cleaning, home repair, maintenance, or landscaping bought by a homeowners' association or landlord.

The proposal describes extra sales taxes in specified districts, a regional vehicle fee, and a delivery fee in Northern Virginia. The regional sales taxes apply in the named districts, the vehicle fee applies to covered vehicles, and the delivery fee applies to retail deliveries in Northern Virginia Transportation Commission localities. The extra sales tax rates are 0.385 percent in Northern Virginia Transportation Commission localities, 0.615 percent in Northern Virginia Transportation Authority localities outside that commission, and 0.2 percent in Potomac and Rappahannock Transportation Commission localities. Food for human consumption and essential personal hygiene products are exempt from the regional sales taxes and delivery fee. The vehicle fee applies to alternative-fuel, electric, or fuel-efficient vehicles registered in Virginia; owners may choose a mileage-based fee instead. The delivery fee would start at 20 cents. Beginning July 1, 2027, it would be adjusted each year based on the prior year's inflation, but not reduced if prices fall.

The proposal directs annual deposits from regional transportation funds to Washington-area transit and commuter rail funds. These provisions concern transportation revenue collected in Northern Virginia and localities served by the Potomac and Rappahannock Transportation Commission. The Northern Virginia fund would send 2 percent of its annual revenue to the Northern Virginia Transportation Commission for transit project planning and design. Revenue above the stated deposits would remain for public transportation in the relevant localities. The specified annual deposits would begin in fiscal year 2028 and rise by 3 percent each year afterward.