Subcommittee carries over bill to eliminate Virginia grocery tax amid local funding concerns
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Summary
Sponsor proposed SB 9 to end the state grocery tax and backfill localities; supporters said it would benefit people on fixed incomes, but local governments told the panel they fear dependence on state appropriations and cited a prior hold‑harmless shortfall; the subcommittee carried the bill over for further work.
A patron presented SB 9 to eliminate Virginia’s grocery tax and to provide state backfill payments to localities so local budgets would not lose revenue. “We will no longer have a grocery tax in Virginia,” the patron said, noting Virginia is one of roughly ten states that still taxes groceries.
In public comment, Tom and Torsha of the Virginia Catholic Conference said the change would help veterans, people on fixed incomes and others facing hardship. Katie Boyle, representing the Virginia Association of Counties and speaking on behalf of the Virginia Municipal League, supported the intent but warned that the proposed structure would leave localities dependent on the state’s continuing appropriation for hold‑harmless payments; she cited a prior instance where an introduced budget did not include a required hold‑harmless appropriation and localities had to request the General Assembly to honor the commitment.
The committee moved to carry SB 9 over for the year to continue work on structure and fiscal protections for local governments.
What’s next: Sponsors and local government groups will continue discussions about hold‑harmless design and timing before the bill returns to the subcommittee.
