Hampton Roads residents will see a 6 percent sales tax on their receipts beginning July 1.
The increase, up from 5 percent, was voted into effect by Virginia legislators in April, as part of a statewide transportation plan.
Virginia’s current sales tax is 4 percent, with an additional 1 percent sales tax collected by individual localities.
On July 1, state sales tax will increase to 5 percent for Hampton Roads residents. Local sales tax rates will remain at 1 percent, meaning consumers will see a 6 percent sales tax total on their purchase receipts for most items.
Practically, the increase amounts to a more significant change on large purchases.
On a $30 purchase, for example, the sales tax will increase from $1.50 to $1.79. On a $500 purchase, shoppers will see a $5 increase from $25 to $30.
For those purchasing appliances, for example, tax on a $1,500 purchase increases from $75 to $90.
Sales tax on a $30,000 purchase increases by $300 from $1,500 to $1,800.
The tax on groceries, 2.5 percent, will not change.
Retail sales tax in Northern Virginia counties also will increase to 6 percent.
As part of the transportation plan, the sales tax increase is the highest in Hampton Roads and Northern Virginia. In the rest of the state, the sales tax will increase by 0.3 percent, from 4 percent to 4.3 percent. With the 1 percent locality tax, the total sales tax in cities such as Roanoke or Lynchburg will be 5.3 percent.
The Hampton Roads region is defined as Isle of Wight County, James City County, Southampton County, York County, Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach and Williamsburg.
Gloucester and Surry counties are not included in the Hampton Roads region. The 5.3 percent sales tax will apply.
Tell us in the comments section what you think about the increase? Will it change your shopping habits?Copyright © 2014, The Baltimore Sun