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SB 730

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

2026 Regular Session Introduced by Scott Surovell

Virginia bill expands sales tax to services and digital property, targeting revenue growth but potentially raising costs for consumers and small businesses statewide.

Fiscal Impact statement From TAX (2/3/2026 9:08 pm)
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WeVote Research Nonpartisan
Bill Summary · SB 730

Legislative bill overview

SB 730 proposes to expand Virginia's sales and use tax base to include taxable services and digital personal property, with tax revenues potentially designated for certain districts. The bill would broaden the definition of taxable goods beyond physical products to capture service transactions and digital purchases that currently escape sales taxation.

Why is this important

This represents a significant modernization of Virginia's tax code to reflect the contemporary economy where services and digital products comprise a growing share of consumer spending. The fiscal impact statement indicates substantial revenue implications, making this a consequential tax policy change that would affect both consumers and the state budget.

Potential points of contention

  • Economic impact uncertainty: Defining which services qualify as "taxable" is complex; overly broad definitions could tax professional services (legal, medical, accounting) while narrow ones may miss the intended digital economy
  • Regressivity concerns: Sales taxes disproportionately burden lower-income households, and expanding the tax base without offsetting measures could worsen this effect
  • Business compliance burden: Requiring service providers and digital vendors to collect and remit taxes creates administrative costs, particularly for small businesses unfamiliar with multi-district tax obligations
  • District-level allocation: The reference to "certain districts" raises questions about equity—why some districts receive revenue while others don't, and whether this creates tax competition between regions

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

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