Virginia Grocery Tax Cut Takes Effect

You’ll now pay a little less at the grocery store but not because prices are down. Virginia reduced its grocery sales tax rate to 1 percent on New Year’s Day which applies to all groceries and certain essential personal hygiene products including diapers. Officials say the one-half-of-one-percent cut will mean a $415 million reduction in tax revenue. Localities are still able to levy a one-percent tax.