Virginia would exempt covered food and hygiene products from taxes

The bill text would bar taxes under this chapter on covered food and essential personal hygiene products. The exemption covers food and essential personal hygiene products as defined in the bill text. Food excludes seeds and plants that produce food, and food from a store where more than 80 percent of total receipts come from prepared food for immediate consumption. Hygiene products include specified disposable incontinence and menstrual products, but not items already exempt under this chapter. The exemption would apply on and after January 1, 2027, if the measure takes effect as written.

The state would distribute money to cities and counties to replace certain local tax revenue. The payments would go to Virginia cities and counties. The total would equal the revenue that would have been distributed if local sales and use taxes on these purchases continued. Each locality's share would be based on its portion of total sales and use tax collections in the month of distribution. These distributions would begin January 1, 2027, and be based on collections for each month.