The November election brought changes to Virginia’s congressional delegation and important decisions at the local level. But for Virginia retailers, the bigger question is what comes next.
As businesses prepare for 2027, several election outcomes and upcoming policy changes deserve attention.
Local Sales Tax Decisions Could Create New Complexities for Retailers
One of the most significant election developments for Virginia retailers happened at the local level.
Voters in 47 Virginia localities considered referendums authorizing an additional sales tax of up to 1% to support school construction and renovation. Preliminary results showed approval in approximately 15 localities, including Richmond and Chesterfield County, while most localities rejected the measure.
For retailers operating across multiple jurisdictions, these decisions could create additional complexities around sales tax rates, point-of-sale systems, and compliance.
Importantly, voter approval does not immediately change the sales tax rate. Local governments must still formally adopt the tax and establish implementation dates.
VRF will continue monitoring these developments and their implications for retailers operating throughout the Commonwealth.
Looking Ahead to the 2027 General Assembly
While Virginia’s General Assembly remains largely unchanged following the election, several significant policy developments are already underway.
Three workforce changes warrant particular attention:
- Minimum wage: Virginia’s minimum wage increases to $13.75 per hour on January 1, 2027.
- Paid sick leave: New requirements begin July 1, 2027, for employers with 50 or more employees, with smaller employers phased in during subsequent years.
- Paid Family and Medical Leave (PFML): Program development and rulemaking continue throughout 2027. The state must establish the contribution rate by October 1, 2027, ahead of payroll contributions beginning April 1, 2028, and benefits becoming available December 1, 2028.
Beyond these established changes, VRF is closely watching additional proposals involving healthcare, employee benefits, and business operating costs.
Surveillance pricing will also be an important issue in 2027.
Proposed legislation would regulate certain uses of consumer data and algorithms to determine individualized prices. As these proposals develop, VRF will be evaluating their implications for retailers, including customer loyalty programs, personalized discounts, and existing pricing practices.
Our Focus Remains the Same
Regardless of election outcomes, the Virginia Retail Federation remains committed to working with policymakers on both sides of the aisle to advance practical policies that support Virginia retailers.
As the 2027 General Assembly session approaches, we’ll continue monitoring legislative and regulatory developments, engaging with elected officials, and ensuring the retail community has a voice in decisions affecting their businesses.
Have a policy concern or question as you plan for 2027? We encourage VRF members to share their perspectives with our team.
