Most people have heard of Small Business Saturday, the Saturday after Thanksgiving when shoppers are encouraged to “shop local.” Shopping locally is a habit that should be practiced year-round. The practice increases commercial tax revenues while supporting local businesses. With Virginia’s passage of the remote sales tax in 2019, you can also shop locally in your own home by going online.
We all pay sales tax, but how does it work? Virginia collects sales tax and distributes it monthly to every county and city – which is essential – based on the locality in which the tax was collected. In our region, the state tax rate is 4.3% and the locality tax is 1%, for a total of 5.3%.
Sales tax revenues come back to Stafford in one of two ways: shoppers visit a business within the county’s boundaries, or shoppers spend money or go online. Then sales tax is collected from registered companies in Virginia.
In 2019, Virginia passed a remote sales tax law that collects sales or use tax on sales via the internet, phone, magazine or other means. This law means that when you shop in your pajamas in your home, a portion of the proceeds may return to Stafford.
Remember, when running errands, choose to shop locally, whether in person or online. It’s a choice you can make to have a direct positive impact on your community.