Sales tax increase in Central Virginia goes into effect Thursday

Posted at 12:25 PM, Oct 01, 2020
and last updated 2020-10-01 12:47:56-04

RICHMOND, Va. -- Beginning Thursday, Central Virginia shoppers will notice a new tax increase on their receipts.

That's because the sales and use tax rate increase went into affect in in Central Virginia Thursday, October 1.

Central Virginia's sales and use tax increased by .7% for a total of 6%. This includes the 4.3% state tax, .7% regional state tax and the 1% local option tax.

The tax rate increase does not apply to groceries or personal hygiene products, as those products are already taxed at a reduced rate.

"What this means for people, we'll this was passed and approved by the general assembly earlier this year. It affects sales made in person, online, on the phone and through mail order," said Stephanie Benson, Virginia Tax Spokesperson.

Some shoppers say they didn't even notice the increase Thursday morning. Some questioned where their money was going.

The tax money is set to pay for transportation projects in the Central Virginia area.

A portion will go to GRTC and another portion will go to the localities in Central Virginia.

"So it's going to affect those sales made in the city of Richmond, the counties of Charles City, Chesterfield, Goochland, hangover, Henrico, New Kent and Powhatan and that includes the town of Ashland," said Benson.

The new adjusted sales tax includes state, regional and local option tax.

    Here’s how the sales tax rate breaks down for other parts of Virginia:

    • For most locations, it’s 5.3%;
    • In Hampton Roads (outside the Historic Triangle region) and Northern Virginia, it’s 6%;
    • In Halifax County, the rate is 6.3%; and
    • In the Historic Triangle region, the rate is 7%.

    For more information on the sales and use tax rate in Virginia, click here.



    Watch 'The Jennifer Hudson Show' weekdays at 3 p.m. on CBS 6!

    📱 Download CBS 6 News App
    The app features breaking news alerts, live video, weather radar, traffic incidents, closings and delays and more.