Ezel / Tax Rulings / VA
VA P.D. 13-102 Retail Sales and Use Tax 2013-06-14

Did Virginia's additional 0.7% Hampton Roads sales tax apply in Gloucester and Surry Counties on July 1, 2013?

Short answer: No. Tax Bulletin 13-8 said Gloucester and Surry Counties were members of the Planning District 23 Commission but were not located in Planning District 23, so the additional 0.7% regional tax did not apply there. Effective July 1, 2013, their total retail sales and use tax rate was 5.3%, while the listed Hampton Roads localities used a 6.0% total rate.

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This page answers the general question as of 2013. Ezel answers yours, under current Virginia tax law, with citations.

Currency note: this ruling is from 2013
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is Virginia Tax Bulletin 13-8, general Department guidance about sales-tax rates taking effect July 1, 2013. It is not a taxpayer-specific ruling, and the stated rates and locality classifications are historical. The bulletin said the Department would revise its earlier guidelines and other materials; later legislation or guidance may have changed the rules. Confirm current rates for the transaction date and locality. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

The additional 0.7% Hampton Roads regional sales tax did not apply in Gloucester or Surry County when Virginia's 2013 rate changes took effect. The Department explained that both counties belonged to the Planning District 23 Commission but were not located in Planning District 23 under the new law.

Beginning July 1, 2013, the total retail sales and use tax rate in Gloucester and Surry was therefore 5.3%. The total rate was 6.0% in Isle of Wight, James City, Southampton, and York Counties and in Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, and Williamsburg.

The bulletin corrected the Department's implementation materials. It said affected dealers and practitioners would be notified and that the Department would revise the guidelines, website information, forms, instructions, and frequently asked questions.

What this means for you

  • For transactions covered by the July 1, 2013 change, Gloucester and Surry used the statewide 5.3% total rate rather than the 6.0% Hampton Roads rate.
  • Membership in the regional commission did not by itself place those counties inside the taxing district.
  • This bulletin is a historical rate notice; current rates must be checked separately.

Common questions

Q: What rate applied in Gloucester and Surry on July 1, 2013?
A: 5.3% total retail sales and use tax.

Q: What rate applied in the listed Hampton Roads localities?
A: 6.0% total retail sales and use tax.

Q: Why were Gloucester and Surry excluded?
A: The Department said they were commission members but were not located in Planning District 23 as defined for the regional tax.

Citations and references

  • House Bill 2313, 2013 Va. Acts ch. 766.
  • Virginia Tax Bulletin 13-8.

Subject

Sales tax changes not imposed in counties of Gloucester and Surry

Source

Original ruling text

TAX BULLETIN 13-8

Virginia Department of Taxation

June 13, 2013

IMPORTANT INFORMATION REGARDING THE

UPCOMING RETAIL SALES AND USE TAX CHANGES

NEW 0.7 PERCENT ADDITIONAL RETAIL SALES AND USE TAX IN

CERTAIN REGIONS WILL NOT BE IMPOSED IN COUNTIES OF GLOUCESTER AND SURRY

The Department of Taxation has received legal advice that the new 0.7 percent additional Retail Sales and Use Tax that will be imposed in the Northern Virginia and Hampton Roads Regions will not be imposed in the Counties of Gloucester and Surry.

Effective July 1, 2013, House Bill 2313 ( Acts of Assembly 2013, Chapter 766), increases the rate of the Retail Sales and Use Tax by 0.3 percent on a statewide basis and imposes an additional Retail Sales and Use Tax of 0.7 percent in the Northern Virginia and Hampton Roads Regions.

The new law provides that the additional 0.7 percent tax applies in the Hampton Roads counties and cities located in Planning District 23. Although the Counties of Gloucester and Surry are members of the Planning District 23 Commission, they are not located in Planning District 23. Accordingly, the Counties of Gloucester and Surry will not be subject to the additional 0.7 percent state Retail Sales and Use Tax to be imposed in the region effective July 1, 2013.

The Retail Sales and Use Tax will be imposed in the Counties of Gloucester and Surry at the rate of 5.3 percent, effective July 1, 2013. The Retail Sales and Use Tax will be imposed in the Counties of Isle of Wight, James City, Southampton, and York and the Cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, and Williamsburg at the rate of 6.0 percent, effective July 1, 2013.

The Department of Taxation is working to notify affected dealers, taxpayers, tax practitioners, and other interested parties of this change. The Department plans to email e-Alerts to all subscribers. The Department also plans to mail notification letters to in-state dealers located in the affected localities as well as to all out-of-state dealers. Additionally, the Department will update its website and the Guidelines it issued on May 1, 2013 for the increase. The revised Guidelines will be available on-line in the Law, Rules and Decisions section of the Department's website. Forms, instructions, frequently asked questions and other helpful information available on the Department's website will also be revised.

For additional information, please contact the Office of Customer Services at (804) 367-8037 or through the “Live Chat” service on the Department’s website, www.tax.virginia.gov .

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