Both candidates for Virginia Governor favor of removing the grocery tax, which could cost the state up to $500 million. Where will the state recoup the revenue? More than likely they will raise the ‘General Sales Tax’ to make up the difference. Younkin’s overall tax cuts are over a billion, including repealing gas tax increases, as well as increasing tax deductions.
On the surface, this seems like a good thing, putting more money back in the pockets of shoppers.
At a purely local level, once that revenue is lost, how is the state actually going to backfill to help us balance the Northampton County budget? Refreshingly, no one seems more concerned about this than former District 1 Supervisor Granville Hogg.
According to Hogg, Northampton County gets 1% of the Grocery Tax. However, the actual amount of income to the County is very difficult to track. County gets 1 check that includes the portion of 5.3% Sales Tax, (as of July 6.3%, 1% for schools) and the 1% of the grocery tax.
But, there is no itemized total, and basically, it comes in a lump sum.
There are approximately 27 entities in Northampton that are collecting a grocery tax. The Food Lion stores Cape Charles and Exmore are the major players, but there are smaller retailers that offer groceries such as Royal Farms, Shore Stop, Dollar General, and niche markets such as Quail Cove, Gull Hummock, Tim’s, and Drizzles. There are also seasonal operations such as Shockley and Shore Breeze Farms.
The effects of tourism on the grocery tax are certainly a factor. Looking at revenues from the 2nd and 3rd quarters (Oct 1 to March 31) to 1st and 4th quarters (April 1 to Sept 30) 2 and 3 Quarters are basically the locals, 1 and 4 are the combination tourists and locals.
Certainly, more research is needed to determine the impact of losing this revenue stream.
Scotiagirl says
A tax on groceries is simply WRONG and should be eliminated. Find some other way…
Dave says
I know! How about we target the fraudulent welfare recipients all over this state? #1
Paul Plante says
What Happens if we eliminate the Grocery Tax?
Now there is a conundrum, alright!
A real stumper it is!
Let’s see – the world ends?
It’s tomarrow instead of today?
Is it the end of time?
The sky falls?
Some kind of combination of all of the above plus some other things I didn’t think of that may in fact be random noise in the system, but still affects the outcome of the algorithm?
Boy, I don’t know – this is way beyond my pay grade, I guess!
We need somebody with an honest to gosh Ph.D. and a J.D. fron Harvard to come and answer that question for us, so we’ll all end up smarter as a result.
Bob says
How about
Eliminating this personal property tax
It’s a back door tax
Why should you pay tax to
Purchase a vehicle
Register this vehicle
Then to OWEN IT ???
Really !!
It also applies to
Property
Not just your property tax
But
An additional Personal Property Tax !!!
I thought the Mafia didn’t exist here
Apparently it does
Scotiagirl says
Yes, Bob, and you can expect to pay personal property tax over and over and over…each year… For as long as you own the “property”!
Ain’t life in Virginia grand???
Wharf Rat says
You never ‘own’ any property in Virginia. I thought everyone knew about that scam.