Senate committee kills repeal of local grocery tax

RICHMOND, Va. (WDBJ) - The Virginia Senate Finance Committee has voted down legislation that would have completed the repeal of the grocery tax.

Last year, the General Assembly eliminated the state’s share, but the local grocery tax remained in place.

Sen. David Suetterlein (R-Roanoke Co.) introduced legislation that would have finished the job and reimbursed localities for the lost revenue.

“Thankfully, we were able to work with the administration last year to repeal the state portion,” Suetterlein told members of the committee Wednesday morning. “I think we should repeal the local portion as well. I don’t understand why it makes sense that groceries be taxed at the local level, not the state level.”

The legislation would cost the state more than $250 million a year to reimburse local governments, and Democrats said it would take funding from other important needs.

The finance committee voted to “pass by indefinitely,” making it unlikely the measure will advance in 2023.