                                 CODE OF VIRGINIA

EXEMPTION FOR FOOD PURCHASED FOR HUMAN CONSUMPTION AND ESSENTIAL PERSONAL
HYGIENE PRODUCTS (§ 58.1-611.1)

A. Before January 1, 2023, the tax imposed by &#xA7;&#xA7; 58.1-603 and 58.1-604
on food purchased for human consumption and essential personal hygiene products
shall be one and one-half percent of the gross sales price. The revenue from the
tax shall be distributed as follows: (i) the revenue from the tax at the rate of
one-half percent shall be distributed as provided in subsection A of &#xA7;
58.1-638 and (ii) the revenue from the tax at the rate of one percent shall be
distributed as provided in subsections B, C, and D of &#xA7; 58.1-638.

B. On and after January 1, 2023, and except for taxes imposed pursuant to
&#xA7;&#xA7; 58.1-605 and 58.1-606, no tax shall be imposed under this chapter,
or pursuant to any authority granted under this chapter, on food purchased for
human consumption or essential personal hygiene products.

C. Beginning February 1, 2023, an amount equal to the revenue that would have
been distributed pursuant to clause (ii) of subsection A shall be distributed as
provided in subsections B, C, and D of &#xA7; 58.1-638 based on the estimates of
the population of cities and counties ages five to 19.

D. 1. As used in this section, &#8220;food purchased for human
consumption&#8221; has the same meaning as &#8220;food&#8221; defined in the
Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended, and federal regulations
adopted pursuant to that Act, except it shall not include seeds and plants which
produce food for human consumption. For the purpose of this section, &#8220;food
purchased for human consumption&#8221; shall not include food sold by any retail
establishment where the gross receipts derived from the sale of food prepared by
such retail establishment for immediate consumption on or off the premises of
the retail establishment constitutes more than 80 percent of the total gross
receipts of that retail establishment, including but not limited to motor fuel
purchases, regardless of whether such prepared food is consumed on the premises
of that retail establishment. For purposes of this section, &#8220;retail
establishment&#8221; means each place of business for which any
&#8220;dealer,&#8221; as defined in § 58.1-612, is required to apply for and
receive a certificate of registration pursuant to § 58.1-613.

   2. As used in this section, &#8220;essential personal hygiene products&#8221;
   means (i) nondurable incontinence products such as diapers, disposable
   undergarments, pads, and bed sheets and (ii) menstrual cups and pads,
   pantyliners, sanitary napkins, tampons, and other products used to absorb or
   contain menstrual flow. &#8220;Essential personal hygiene products&#8221; does
   not include any item that is otherwise exempt pursuant to this chapter.

HISTORY: 1999, cc. 366, 466; 2002, c. 13; 2003, c. 806; 2004, Sp. Sess. I, c. 3;
2005, cc. 487, 521; 2019, cc. 549, 550; 2022, Sp. Sess. I, cc. 2, 4, 5; 2023,
Sp. Sess. I, c. 1.