NFIB State Director Julia Hammond today thanked members of the General Assembly for stopping legislation that would have raised taxes on Virginia small businesses and their customers. The proposals would have increased tax rates and expanded the sales tax to cover a wide range of everyday services, from streaming subscriptions to pet care.

“Monday night’s decision to table these bills shows lawmakers were listening to small businesses and working families,” Hammond said.

Lawmakers have indicated they may review the proposals over the summer and consider them again during next year’s session, but Hammond urged caution moving forward.

“Virginia is operating with a budget surplus, so this is not the time to raise taxes,” she said. “These proposals would mainly drive up costs for consumers while adding new paperwork and compliance burdens for small businesses, which already operate on thin margins and usually can’t afford dedicated teams of accountants and compliance officers.”

Hammond also noted the proposals conflict with Gov. Abigail Spanberger’s stated goal of improving affordability.

“These tax increases would raise the cost of living and doing business in Virginia, even as the governor and lawmakers say they want to improve affordability,” she said. “If leaders are serious about that goal, they should reduce financial pressure on small businesses and their employees, not add new taxes.”

Under the proposal, the sales tax would have been expanded to include services such as gym memberships, hair salons, dry cleaning, home repairs, travel planning, streaming services, and pet care.

“We hope our leaders will remember that these are not luxury services,” Hammond said. “These are services small businesses and families rely on every day.”