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Exemption Brewing in Virginia

  • Apr 15, 2016 | Gail Cole

 Eligible brewers in Virginia will soon benefit from a sales tax exemption.

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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.