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Virginia Sales and Use Tax Set to Increase

Under HB 2313, enacted by the 2013 Virginia General Assembly, the Commonwealth’s sales and use tax rates will increase effective July 1, 2013. Additional rate changes are in store for the Northern Virginia and Hampton Roads regions.

Effective July 1, Virginia’s Retail Sales and Use Tax will increase from 4 percent to 4.3 percent, resulting in a total state and local tax rate of 5.3 percent. The same day, the same rate for the Northern Virginia and Hampton Roads regions will rise an additional 0.7 percent, raising the total state tax rate in those regions to 5 percent and the combined state and local tax rate to 6 percent. The current rate of 2.5 percent on sales of qualifying food will not change.

Northern Virginia is defined as the counties of Arlington, Fairfax, Loudoun and Prince William and the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park. Hampton Roads is defined as the counties of Gloucester, Isle of Wight, James City, Southampton, Surry and York and the cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach and Williamsburg.

Revised forms and instructions will be available in May. For further information, visit the Virginia Department of Taxation (TAX) website or call the department at (804) 367-8037.

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