Alexandria Mayor Responds To Youngkin's Grocery Tax Proposal

ALEXANDRIA, VA — Mayor Justin Wilson addressed Gov. Glenn Youngkin's proposal to eliminate the grocery tax after the governor discussed it during a visit to Alexandria Thursday.

Youngkin visited the Safeway store on King Street Thursday to discuss his plan to eliminate the 2.5 percent sales tax on groceries. Virginia is one of 13 states that charges a tax on groceries. The tax on groceries includes 1.5 state tax and 1 percent locality tax, which is lower than the normal sales tax rate.

During a virtual town hall Thursday, Wilson responded to the governor's proposal to eliminate the state and local grocery tax. The mayor said the city had been advocating for eliminating the grocery tax for decades in its legislative priorities.

"We've always felt that the grocery tax was a regressive tax and one that needed to get rid of," said Wilson. "I think the important thing to note is that the grocery tax is both a state revenue and a local revenue."

The mayor estimated the local part of the tax provides $4.5 million in tax revenue annually to the city. He noted cutting the grocery tax without replacing it with other revenue would create a gap in the city budget.

"We're all for the grocery tax cut," said Wilson. "What we want to make sure is that it's replaced with state revenue, sustainable state revenue that will ultimately keep local governments harmless. If the state is going to cut a local and state tax but force us to raise taxes somewhere else to make up the hole, then that's not a win for anybody."

Youngkin pointed to a state budget surplus as a reason to provide several tax relief measures. At the end of the last fiscal year on June 30, 2021, Virginia had a $2.6 billion surplus, the largest in the commonwealth's history. Before former Gov. Ralph Northam left office, he proposed a budget that would eliminate the 1.5 percent state grocery tax but not affect the local tax.

The state budget is subject to changes and approval by the Virginia General Assembly and the new governor.

SEE ALSO:

• Elimination Of VA Grocery Tax Touted By Youngkin In Alexandria
• Northam Seeks Tax Rebates, Elimination Of State Grocery Tax