Grocery Tax Cut, Doubled Standard Deduction Advance in House of Delegates

The House of Delegates Finance Committee advanced a bill to eliminate Virginia’s grocery tax and a bill to double the standard deduction on income tax; those are two key promises Governor Glenn Youngkin made in his campaign as part of his focus on “kitchen-table issues.”

HB 90, sponsored by Delegate Joe McNamara (R-Roanoke) exempts food for human consumption and essential personal hygiene items from state and local sales taxes. On Monday, Delegates Candi Mundon King (D-Prince William) and Delegate Richard ‘Rip’ Sullivan (D-Fairfax) expressed concern about how a different Youngkin-inspired tax bill would impact low-income Virginians. McNamara recalled those remarks in the Wednesday committee meeting.

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Virginia General Assembly Pushes Forward with Taxes on Forgiven PPP Loan Revenue

The Virginia General Assembly is moving forward with legislation that would effectively make employers who received Paycheck Protection Plan (PPP) loans liable for state taxes. Bills that would practically exempt all income from the forgiven loans have been replaced with legislation that caps how much of the loan is exempt. Business advocates warn that the taxes could surprise the struggling businesses that the PPP loans were meant to help.

The bills bring Virginia’s tax code into conformity with the IRS; Virginia’s tax law doesn’t automatically change to match federal law, so state legislators pass tax conformity bills.

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