You won’t have a sales tax holiday to look forward to in August, as you have in years past. Virginia ended its weekend without sales taxes on clothing, school items, and appliances this year.
According to the Virginia Department of Taxation, the sales tax holiday won’t happen because of an expiration date in Virginia’s Appropriation Act from 2022. That expiration date is July 1.
Typically, the three-day holiday in August would waive the state’s 5.3 percent sales tax and any local taxes on back-to-school supplies under $20, clothes and shoes under $100, emergency preparedness items, and select EnergyStar and WaterSense appliances.
The aim of the holiday that started back in 2006 was to help families save money on back-to-school purchases and to encourage you to take necessary precautions during hurricane season.
It would take legislative action, essentially an amendment to the state budget, for the sales tax holiday to return. Budget negotiations in Virginia fell apart earlier this week. Virginia’s budget is a two-year deal, so the state is able to continue operating past June 30.
But the lack of a budget bill means uncertainties for counties and cities that make decisions based on how much state funding they receive. It also means that $3.6 billion in surplus funds for things like teacher raises and mental health can not be allocated.
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