Virginia Governor Pitches Sales Tax Hike, Including Digital Goods

Virginia Gov. Glenn Youngkin (R) proposed a state budget Wednesday featuring personal income tax cuts across all brackets, a sales tax rate increase, and a move to tax digital goods such as cloud storage and streaming media.

In his address to the General Assembly’s Joint Money Committee, Youngkin outlined a two-year spending plan (HB 30/SB 30) with funding allocations for mental health and child care, and more compensation for teachers and state employees.

Youngkin urged lawmakers to consider increasing the state sales tax to 5.2% from 4.3% and closing the “big tech tax loophole” regarding digital ...