Exemption Brewing in Virginia
- Sales Tax News
- Apr 15, 2016 | Gail Cole
There's an exemption brewing in Virginia. Brewers in Virginia will soon be eligible for an exemption from sales tax on many business inputs.
Bill sponsor Delegate Steve Landes said the measure “will help our current craft breweries expand their operations and encourage new craft breweries to locate in the Commonwealth.” He noted that “Virginia is home to some of the best breweries in the country.”
The following items will be exempt if purchased for use primarily in the manufacture of beer by breweries meeting certain licensing requirements (§ 4.1-208 (1)(2)):
- Machinery, tools, and equipment, and repair parts or replacements for machinery, tools and equipment
- Materials for future processing, manufacturing or conversion into beer, where such materials either enter into the production of or become a component part of the beer
- Materials, including containers, labels, snacks, cans, bottles, kegs, boxes, drums, or bags for future use, for packaging the beer for shipment or sale.
This exemption is due to the enactment of HB 859, which takes effect July 1, 2016.