In order to stay afloat, states are charging taxes where they deemed to be reasonable. These businesses and entities are required to have Virginia EIN number in order to process their tax and to pay for it under the state law. In an effort to become a developed state, Virginia is implementing a new sales tax for tourism in the Historic Triangle Region. The new sales tax will be implemented starting on the first day of July this year.
The main reason for the sales tax is because the local government wanted to encourage more tourists to visit the area. The sales tax is only 1 per cent and will be imposed on three areas – York County, Williamsburg and James City County.
The tax will not cover groceries but it will be added on the regular sales tax of retail items as well as hotel room bookings. Basing on the website of Virginia Tax, the region now has a total sales tax of 7 per cent. Virginia Tax is responsible for implementing the tax laws within the state.
The tourism sales tax was approved by the General Assembly in April of this year and half of the money to be earned is going to the fund created for the Historic Triangle Marketing. The region will receive promotion and campaigns through the money from the fund. The remaining half of the tax revenue will be given back to the localities wherein the tourism sales were collected in the first place. This setup was confirmed by communications specialist Stephanie Benson.
Colonial Williamsburg Foundation’s spokesperson, Joseph Straw, said that he is proud of the initiative that the regional tourism has come up with. Straw said that the communities, hospitality sector and attractions in the area should work together in order to raise the number of tourists in the region. The tourism market is quite competitive and the marketing tool used by the committee is a good chance for the region to receive more recognition.
Aside from the tax collected from businesses and entities with Virginia EIN number, the region will have the funding to focus on marketing therefore raising the overall economy of the state.