Governor Youngkin called a Special Session that was held yesterday, Wednesday, September 6th for the General Assembly to vote on the 2023 budget deal. This deal was reached after many months of negotiations between House Appropriations Conferees and Senate Finance and Appropriations Conferees. Both chambers gaveled into Session at 10am on the 6th, and there was little debate as both the House and Senate versions of the budget moved through the process. Ultimately, the bills passed the House 86-Y 4-N and the Senate 38-Y 0-N 1-A. Many of the “No” votes or abstentions centered around their opposition to the process. The Budget will now be communicated to Governor Youngkin and will be before him for signature.
The budget amendment that impacts the retail industry is the reinstatement of the Sales Tax Holiday, which lapsed this summer. The holiday will take place the weekend of October 20th this year and will revert back to the traditional weekend for 2024.
The exact language of the amendment in Section 4-14 is:
24. That, notwithstanding any other provision of law or regulation, the retail sales and use tax exemption holidays authorized in subdivision 18 of § 58.1-609.1, § 58.1-611.2 and § 58.1-611.3 of the Code of Virginia, applicable to Energy Star or Water sense qualified products, school supplies, clothing and footwear, and certain hurricane preparedness equipment shall remain in effect through July 1, 2025; except that the retail sales and use tax exemption holidays so authorized for calendar year 2023 shall apply only to those sales occurring during the three-day period that begins on Friday, October 20, and ends at 11:59 p.m. on the following Sunday.
As you will see from the language, the Holiday is in effect until July 1, 2025, therefore we will seek to reinstate language in the Code of Virginia to extend the Holiday into future years.