Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-220 - Brackets for collection of the tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. The rate of the sales and use tax is 5.3%,
				which is comprised of a 4.3% state tax and a 1.0% local tax applicable
				throughout Virginia. (See
				23VAC10-210-6040 through
				23VAC10-210-6043 for special tax
				rate and provisions applicable to sales through vending machines.) An
				additional state sales and use tax is imposed in the Northern Virginia and
				Hampton Roads Regions at the rate of 0.7%. The total rate of the state and
				local sales and use tax is 6.0% in localities that fall within these regions
				(4.3% state, 0.7% regional, and 1.0% local). For definitions of the "Hampton
				Roads Region" and the "Northern Virginia Region" see
				23VAC10-210-2070.
The bracket system is used to eliminate fractions of $.01 and
				  must be used to compute the tax on transactions of $5.00 or less. On
				  transactions over $5.00, the tax is computed at a straight 5.3% (6.0% in the
				  Hampton Roads and Northern Virginia Regions), with one half cent or more
				  treated as $.01. Any dealer who collects the tax in accordance with the bracket
				  system set forth herein shall not be deemed to have over collected the tax. For
				  over collection of the tax generally, see
				  23VAC10-210-340 D.
B. The bracket system does not
				relieve the dealer from the liability to pay an amount equal to 5.3% (6.0% in
				the Hampton Roads and Northern Virginia Regions) of his gross taxable sales.
				However, if the dealer can prove to the department that more than 85% of the
				gross taxable sales for the period were from individual sales of $.10 or less
				(and that he was unable to adjust his prices in such manner as to prevent the
				economic incidence of the sales tax from falling on him), the department will
				determine the proper tax liability of the dealer based on the portion of gross
				taxable sales that came from sales of $.11 or more. Any dealer who may claim
				this exception must file with each return a separate statement explaining his
				claim in detail for consideration by the department.
C. Below is the bracket system for the
				combined state and local tax of 5.3% on transactions of $5.00 or less:
Sales Price
Tax Due
0.01 to 0.09
0
0.10 to 0.28
0.01
0.29 to 0.47
0.02
0.48 to 0.66
0.03
0.67 to 0.84
0.04
0.85 to 1.03
0.05
1.04 to 1.22
0.06
1.23 to 1.41
0.07
1.42 to 1.60
0.08
1.61 to 1.79
0.09
1.80 to 1.98
0.10
1.99 to 2.16
0.11
2.17 to 2.35
0.12
2.36 to 2.54
0.13
2.55 to 2.73
0.14
2.74 to 2.92
0.15
2.93 to 3.11
0.16
3.12 to 3.30
0.17
3.31 to 3.49
0.18
3.50 to 3.67
0.19
3.68 to 3.86
0.20
3.87 to 4.05
0.21
4.06 to 4.24
0.22
4.25 to 4.43
0.23
4.44 to 4.62
0.24
4.63 to 4.81
0.25
4.82 to 4.99
0.26
5.00
0.27
For differential rate on fuels for domestic consumption, see
				  23VAC10-210-630.
D. This subsection contains the bracket
				system for the combined state, regional, and local tax of 6.0% in the Hampton
				Roads and Northern Virginia Regions on transactions of $5.00 or less:
Sales Price
Tax Due
0.00 to 0.08
0
0.09 to 0.24
0.01
0.25 to 0.41
0.02
0.42 to 0.58
0.03
0.59 to 0.74
0.04
0.75 to 0.91
0.05
0.92 to 1.08
0.06
1.09 to 1.24
0.07
1.25 to 1.41
0.08
1.42 to 1.58
0.09
1.59 to 1.74
0.10
1.75 to 1.91
0.11
1.92 to 2.08
0.12
2.09 to 2.24
0.13
2.25 to 2.41
0.14
2.42 to 2.58
0.15
2.59 to 2.74
0.16
2.75 to 2.91
0.17
2.92 to 3.08
0.18
3.09 to 3.24
0.19
3.25 to 3.41
0.20
3.42 to 3.58
0.21
3.59 to 3.74
0.22
3.75 to 3.91
0.23
3.92 to 4.08
0.24
4.09 to 4.24
0.25
4.25 to 4.41
0.26
4.42 to 4.58
0.27
4.59 to 4.74
0.28
4.75 to 4.91
0.29
4.92 to 5.00
0.30
Statutory Authority: §
											58.1-203 of the Code of Virginia.