Below is a list of a few of the bills that passed in the 2022 General Assembly Session that will become effective as of Friday, July 1st.
As previously reported, the Virginia General Assembly adjourned the 2022 Regular Session sine die Saturday, March 12th. However, a final budget was not produced during this time and Governor Youngkin called the Legislature into a Special Session in order for budget negotiations to be completed. The Special Session adjourned sine die Friday, June 17th with a final compromise budget and the adoption of 27 of the 35 amendments the Governor sent down to the House and Senate’s Budget Conference Report that was adopted June 1st. Governor Youngkin ceremoniously signed the final Budget Tuesday, June 21st and it will become effective Friday, July 1st.
Tax relief, the grocery tax, and a gas tax holiday were some of the major issues being negotiated between the House and Senate. In the end, the Legislature did not approve the Governor’s last attempt at implementing a Gas Tax Holiday. However, a compromise was reached on the Grocery Tax. The budget eliminates the State portion (1.5%) of the grocery tax and tax on personal hygiene products, and this is to be implemented by January 1, 2023. This is found in Item 4-14 of HB 30.
Another budget item that is of importance for Virginia Retail Federation members is the complete elimination of Accelerated Sales Tax (AST). That means that if AST was still required of your business, your last Accelerated Tax payment was paid as of June 30, 2021. This is Item 3-5.06 of HB 29.
We also wanted to remind members that Governor Youngkin issued Executive Order 6, which directed DOLI to assess the COVID-19 Permanent Standard. The VRF and the Business Community worked to oppose the necessity of this Permanent Standard throughout its existence, because of the ever-changing nature of COVID-19. As previously reported, the Permanent Standard was officially repealed and DOLI has issued guidance to employers which can be found here.