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SB 572

Retail Sales and Use Tax; exemptions for tangible personal property used for public improvements.

2026 Regular Session Introduced by Bryce Reeves

Virginia bill exempts tangible personal property for public improvements from sales tax, reducing state revenue but potentially lowering infrastructure project costs.

Passed by indefinitely in Finance and Appropriations (14-Y 0-N)
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Bill Summary · SB 572

Legislative bill overview

SB 572 would exempt tangible personal property used for public improvements from Virginia's retail sales and use tax. The bill was prefiled in January 2026 and referred to the Finance and Appropriations Committee, which voted to indefinitely postpone it on January 28, 2026.

Why is this important

Sales tax exemptions directly reduce state revenue while potentially lowering costs for public infrastructure projects. This could affect how Virginia funds schools, transportation, and other services, or shift tax burden to other taxpayers. The fiscal impact statement suggests the bill would have measurable revenue consequences for the state.

Potential points of contention

  • Revenue impact: Any sales tax exemption reduces state funding available for services unless offset by other revenue sources or spending cuts
  • Definition ambiguity: "Tangible personal property used for public improvements" could be interpreted broadly, creating disputes over what qualifies and potential for abuse
  • Equity concerns: Exemptions may benefit certain contractors or industries disproportionately while other businesses and individuals pay full tax rates

Compiled from official sources — confirm details with the bill’s official record.

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