Virginia’s Other New Taxes – hold on to your seats!

While we have been watching COVID numbers, the Virginia legislature has been implementing its version of the green new deal and healthy living deal.

Most taxes go into effect July 1, 2020 unless otherwise noted.

Gasoline Taxes:
This gets complicated. Statewide increase of 5¢/gallon. For those outside of Northern Virginia and Hampton Roads, you will join them in paying an additional 7.6 cents/gallon (7.7 for diesel). So the statewide gas tax is now 28.8 cents/gallon. On July 1, 2021 they go up another 5 cents per gallon. On the same date Diesel goes up another 6.8 cents/gallon. Starting on July 1, 2022, state gasoline and diesel tax increases will be index to the consumer price index.

Cigarettes/Tobacco:
The State really wants you to quit smoking. They are doubling the cigarette tax from $3/carton to $6/carton.
And it gets worse. Other tobacco alternatives such as pipe tobacco, snuff and chewing tobacco goes up to 20%. And Vaping products now have a 6.6 cents per milliliter tax.
Starting July 1, 2021, localities without a local cigarette tax may impose one and they can’t exceed $2/carton.

Meals:
Those with meals taxes (except if they had a referendum which failed in the last six years) can raise them from 4% to 6%.

Entertainment Taxes:
Counties may impose taxes on entertainment admissions (as if after COVID anyone goes to the movies).
Game of Skill machine has a license fee of $1,200 per machine to pay for COVID expenses (don’t bet on it ever going away).

Local Sales and Use Taxes:
The following localities are authorized to call referendums on increasing their sales and use taxes an additional 1% to pay for school projects. They are Henry, Charlotte, Halifax, Mecklenburg, Pittsylvania, Gloucester and Northampton counties, and the City of Danville.

Peer to Peer Vehicle Sharing:
Starting October 1, 2020, there will be a new tax for this. Sort of like renting out your own car to others.

Plastic Bags:
Beginning January 1, 2021 the dreaded plastic bag will incur a 5 cent tax for localities.

Electricity:
Electricity Generators will pay a carbon tax starting January 1, 2021, the amount will be set by auction. This will be passed along to consumers along with another tax from the state a usage tax to be set by the State Corporation Commission.

Transient Occupancy Taxes:
For those counties not charging them, will be authorized to do so starting May 1, 2021.

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