by Steve Haner

The tax increase proposals still pending at the 2026 General Assembly will extract another $4 to $5 billion annually from Virginians if enacted, shared between the state and the local governments.ย ย ย
The Democrats in political control have taken a bow for producing competing budget proposals that are not dependent on major tax increases, and for killing the large income tax increase and sales tax expansions some of their members proposed.ย That does not mean there will be no tax increases forwarded to Governor Abigail Spanberger (D) for approval.
Three proposals will impact most households and one of them was already signed by Spanberger, with the other two endorsed by her and expected to be signed.ย There are at least five other pending bills which will produce revenue from specific transactions that only some Virginians will have to pay, transactions they can choose to avoid.ย
The most unusual and noteworthy of those is a state gross receipts tax on the sale of firearms or ammunition of 11 percent, a far higher tax rate than any sales tax imposed anywhere in Virginia and far higher than the gross receipts taxes imposed on retailers by Virginia local governments.ย ย













