Additional Retail Sales and Use Tax in Charlotte, Gloucester, Northampton and Patrick Counties in Virginia
Virginia Tax is announcing that effective July 1, 2021, a new 1% additional retail sales and use tax will be levied in Charlotte, Gloucester, Northampton, and Patrick counties in Virginia. The sales and use tax levied will total 6.3%, comprised of the 4.3% state tax, the 1% percent local option tax, and the 1% additional local tax.
Sales made on or after July 1, 2021 will be subject to the new tax rate. Items delivered to a purchaser and paid for on or after July 1, 2021 will be taxed at the 6.3% rate, regardless of when the property was ordered. The increased rate will not apply to property delivered prior to July 1, 2021, but paid for on or after July 1, 2021. Also, the increased rate will not apply when a taxable sale or lease payment is paid for in full prior to July 1, 2021, even though delivery may occur on or after July 1, 2021, or the paid-in-full lease payment covers a lease period beginning on or after July 1, 2021.
The rate of tax on food purchased for home consumption and qualifying essential personal hygiene products is unaffected by the law change and will remain at the current 2.5% (1.5% state and 1% local) rate statewide.
More information can be found in Tax Bulletin 21-6 and in the Laws, Rules, and Decisions section of our website.
If you have additional questions, go to www.tax.virginia.gov
, or contact us at 804.367.8037 for business tax questions.