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1999 SESSION

990800176
HOUSE BILL NO. 2356
Offered January 21, 1999
A BILL to amend the Code of Virginia by adding a section numbered 58.1-628.1, relating to the rate of retail sales and use tax on food purchased for human consumption.
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Patrons-- Cranwell, Almand, Armstrong, Barlow, Bennett, Brink, Christian, Clement, Crittenden, Croshaw, Darner, Davies, Day, Deeds, Diamonstein, Dickinson, Grayson, Hall, Hull, Jackson, Joannou, Johnson, Jones, D.C., Jones, J.C., Keating, McEachin, Melvin, Moran, Phillips, Plum, Puller, Robinson, Scott, Shuler, Spruill, Tate, Thomas, Van Landingham, Van Yahres, Watts, Williams and Woodrum; Senators: Couric, Edwards, Gartlan, Howell, Marsh, Miller, Y.B., Puckett, Reynolds, Ticer and Whipple
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Referred to Committee on Finance
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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 58.1-628.1 as follows:

§ 58.1-628.1. Rate of tax on sales of food purchased for human consumption.

A. The tax imposed by this chapter or pursuant to the authority granted in §§ 58.1-605 and 58.1-606 at a total rate of four and one-half percent on food purchased for human consumption shall be levied as follows:

1. On and after July 1, 1999, the tax rate on such food shall be three percent with the one and one-half percent that is eliminated resulting in a reduction of only the state’s share of the revenues collected.

2. On and after July 1, 2000, the tax rate on such food shall be one and one-half percent with the three percent that is eliminated resulting in the elimination of the state’s two percent share, the elimination of the Transportation Trust Fund’s one-half percent share and a one-half percent reduction of the one percent share returned to localities based on school age population. The foregone one-half percent state sales and use tax dedicated to the Transportation Trust Fund and the foregone one-half percent state sales and use tax returned to localities based on school age population shall continue to be funded from other state revenues collected under this chapter as if such foregone amounts were collected and shall be distributed in accordance with the provisions of § 58.1-638.

3. On and after July 1, 2001, the tax rate on such food shall be eliminated. The foregone one-half percent state sales and use tax dedicated to the Transportation Trust Fund and the foregone one percent state sales and use tax returned to localities based on school age population shall continue to be funded from other state revenues collected under this chapter as if such foregone amounts were collected and shall be distributed in accordance with the provisions of § 58.1-638. The foregone one percent local option sales and use tax shall be funded from other state revenues collected under this chapter as if such foregone amount were collected and shall be distributed in accordance with the provisions of §§ 58.1-605 and 58.1-606.

B. As used in this section, “food purchased for human consumption” means food and food products not otherwise exempt but which would be exempt if purchased with coupons issued under the federal Food Stamp Program, 7 U.S.C. § 51, except for seeds and plants which produce food for human consumption.