A new .7% regional retail sales and use tax will be imposed in Central Virginia (including the city of Richmond, Charles City, Chesterfield, Goochland, Hanover (including the town of Ashland), Henrico, New Kent, and Powhatan counties.
This new tax will bring the combined total sales tax to 6% (consisting of the 4.3% sales tax, the new .7% regional sales tax, and the 1% local option tax). This additional sales tax will be allocated to the Central Virginia Transportation Authority, and puts Central Virginia in line with Northern Virginia and Hampton Roads with regard to their sales tax rates.
A notable exception to the new tax is that it does not apply to: (i) food purchased for home consumption, or (ii) qualifying essential personal hygiene products, both of which will remain at the current 2.5% sales tax rate statewide.
Read the full text of Tax Bulletin 20-18 describing the new tax here.