July 1 brought the end of a much-loved annual tradition in Virginia: Starting this year, sales tax holiday weekends will disappear from the calendar.
Shoppers in the state may be familiar with the tax-free weekends, whether it's because you love the savings or loathe the crowds.
Held on the first Friday in August every year since 2015, when three different sales tax holidays were combined into one three-day event, the sales tax holiday exempts certain items from Virginia's 5.3% statewide sales tax rate.
The exemption covered certain hurricane preparedness items, clothing and school supplies, Energy Star items and WaterSense items.
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Why did Virginia's sales tax holiday go away?
According to the Virginia Tax webpage where information about the holiday is usually listed, it's just because an item in a bill was never renewed.
Section 3-5.25 of the 2022 Appropriation Act states that, "Notwithstanding any other provision of law or regulation, the retail sales and use tax exemption holidays..." authorized by the Code of Virginia, "shall remain in effect through July 1, 2023."
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That means that, without any bills renewing the sales tax holidays, they expire this summer -- and there haven't been any such bills.
State Sen. Scott Surovell, who represents parts of Fairfax, Prince William and Stafford counties, told News4's Drew Wilder that renewing the tax holiday would require a bill or budget amendment by the General Assembly.
That's the standard procedure, and how the last sales tax holiday was implemented.
When asked whether Virginia Gov. Glenn Youngkin feels he has the authority to bring back the sales tax holiday on his own, a spokesperson replied:
"The governor put forth a balanced budget proposal that utilized the $3.6 billion to invest in education, law enforcement, behavioral health, and provide Virginians with needed tax relief. Yet, the Senate Democrats have stalled the budget process for political gain at the expense of Virginians and have left critical items such as the sales tax holiday in the balance. Given that, the governor is considering next steps."
Shoppers who rely on the holiday for their back-to-school shopping needs are out of luck this summer: Because the item expired July 1, before the August weekend this year, that means the last sales tax holiday was actually in 2022.
In the meantime, the end of the sales tax holiday weekend could have a negative effect on Virginia retailers.
"It's gonna sting," said Kathy Dalby, CEO of Pacers Running in Alexandria.
Her business sells running shoes, apparel and accessories, and does a lot of business on those tax holiday weekends when high schoolers start preparing for cross country season. Other shoppers in the general public also tend to take advantage of the lower prices.
"It's one of those moments we depend on," Dalby said. In terms of bolstering her small business, sales tax holiday weekends are "second to Black Friday for us."
Without the tax holiday this August, Dalby estimates sales will go down by about 30%, as Pacers Running loses the bump they typically see that weekend every year.
With staffers that depend on those hours, stock that was bought a year ahead of time before it was known that the sales tax holiday would expire, and the threat of recession looming over the economy, "it's just unfortunate," Dalby said.
