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HB 900

Sales & use tax on taxable services & digital personal property; taxes levied in certain districts.

2026 Regular Session Introduced by Rip Sullivan

HB 900 expands Virginia's sales tax to services and digital property, allowing districts to add local taxes, broadening the tax base but potentially increasing consumer and business costs.

Fiscal Impact statement From TAX (2/4/2026 10:56 am)
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WeVote Research Nonpartisan
Bill Summary · HB 900

Legislative bill overview

HB 900 proposes extending Virginia's sales and use tax to previously untaxed services and digital personal property, while allowing certain districts to levy additional local taxes on these newly taxable categories. The bill appears designed to broaden the state's tax base beyond traditional goods to capture revenue from the growing digital and service economy.

Why is this important

This represents a significant expansion of what Virginia taxes, potentially affecting consumers' purchases of digital goods (software, streaming services, apps) and various professional services. The revenue generated could substantially increase state and local tax collections, but would likely increase costs for consumers and businesses relying on these services.

Potential points of contention

  • Scope ambiguity: "Taxable services" is broadly defined—unclear which specific services are included, creating uncertainty for businesses about compliance obligations
  • Digital economy impact: Taxing digital goods and services could disproportionately affect tech companies, remote workers, and service providers while raising costs for consumers in an increasingly digital economy
  • Local district variation: Allowing different districts to impose varying tax rates could create administrative complexity and competitive disadvantages between regions, potentially pushing businesses away from higher-taxed areas

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

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