Virginia would exempt groceries and certain hygiene supplies from sales taxes

Virginia would exempt covered food and hygiene products from state and local sales and use taxes. Covered hygiene products include menstrual supplies and disposable incontinence supplies, such as diapers. Food eligibility follows a referenced federal definition, but excludes food-producing seeds and plants. Food from stores earning more than 80 percent of total receipts from food they prepare for immediate eating is excluded. The act would take effect upon passage; the exemption specifies October 27, 2026, as its start date.

Virginia would distribute money to cities and counties to replace local sales and use taxes on covered goods. Each Virginia city and county would receive a share based on its portion of total sales and use tax collections for that month. The total would equal the local tax revenue that would have been collected on covered food and hygiene products. Replacement distributions would begin December 1, 2026.