Virginia House Bill HB696

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Retail Sales and Use Tax; exemption for essential personal hygiene products.

Impact

If passed, HB696 would result in a direct change to state tax law, specifically in how sales tax applies to particular consumer goods deemed essential. This could set a precedent for future exemptions based on the necessity of goods, rather than luxury status. Proponents of the bill argue that this exemption will promote equity within the taxation system, allowing lower-income families access to necessary items without additional financial barriers.

Summary

House Bill 696 seeks to establish a sales tax exemption for essential personal hygiene products in Virginia. This move is aimed at easing financial burdens on residents, particularly low-income families, who may struggle with purchasing necessary hygiene items. The bill defines essential personal hygiene products to include items such as diapers, menstrual products, and other incontinence products. The intention is to alleviate the financial strain of sales tax on these essential goods, ensuring they are more affordable for all citizens.

Contention

While supporters tout the benefits, there may also be contention over the bill's potential impact on state revenue. Some legislators may express concerns about the possible decrease in sales tax revenues, which are often used for essential state services. Additionally, the classification and list of hygiene products that qualify for this exemption may lead to debates regarding definitions and the regulation of product categories within tax law.