Please see the attached submission in opposition to HB 900 and HB978 regarding sales tax on self storage units.

Chairman Sullivan and Members of the Subcommittee:   Mid-Atlantic NATO, the organization representing movie theater owners and operators in Virginia, opposes HB 900 and HB 978 in their current forms.  While any new tax on theater admissions will have a chilling effect on sales, applying state and local sales tax to admissions would be particularly onerous to theaters and other entertainment venues in localities that already levy hefty admissions taxes.  As an example, the City of Williamsburg charges an admissions tax of 10% on ticket sales.  It also has one of the highest combined state and local sales tax rates in the Commonwealth of 7%.  If ticket sales were subjected to state and local sales taxes on top of the admissions tax, the effective tax rate on an admissions ticket in Williamsburg would be 17%!  This is significantly higher than the combined tax rates on admissions anywhere else in the country.  Either an exemption or a credit against sales tax collections where an admissions tax has been separately collected would be an appropriate remedy to address this concern so that movie theaters and other entertainment venues aren’t subjected to double taxation under this bill.  Thank you for your attention to this matter.

Please see the attached testimony.

Please see the attachment

Dear Chairperson Sullivan and Members of Subcommittee #3: On behalf of the Council On State Taxation (COST), I appreciate the opportunity to submit comments regarding H.B. 900, legislation that would substantially expand Virginia’s sales and use tax base to include digital personal property, digital services, and a wide range of taxable services. COST supports efforts to modernize state tax systems; however, I write to strongly urge the Subcommittee to include broad business‑to‑business (B2B) exemptions in H.B. 900. As drafted, the bill would violate fundamental principles of sound tax policy by imposing substantial taxes on business inputs, distorting economic decision‑making, and creating cascading tax burdens that ultimately harm Virginia’s competitiveness.

This letter is submitted on behalf of the DASH Advisory Committee (DAC), an independent committee of Alexandria residents and regular transit users who advocate for Alexandria Transit (DASH). This letter provides our support for HB900, which advances solutions for transit funding in Northern Virginia. For DASH riders and the broader Alexandria community, HB900 represents a critical opportunity to secure the funding needed to maintain a state of good repair, maintain reliable service, modernize our fleet, and expand service to meet growing demand. We strongly urge the House Finance Subcommittee #3 to recommend reporting this bill. Thank you for your consideration of this important legislation.

My name is Jessica Mott of Arlington VA. I support HB978 and HB900, which would levy the sales and use tax on digital and other specified services as well as digital property. Obviously these bills differ in details and would need to be reconciled, but both proposals are commendable. JLARC and other studies show that Virginia's tax system needs modernization to reflect our "new" economy. Virginia currently levies taxes on fewer types of services than 40 other states, even though residents now spend twice as much on services as on goods. Virginia taxes lawnmowers but not lawn services, for example. Although in general sales and use taxes are not necessarily economically "progressive" in impact, (i.e. impose higher taxes on those who are richer), most of the specified services proposed to be taxed are discretionary, which means that overall, the proposed bill's impact would be more progressive than many sales taxes. I am pleased that the HB978’s proposed exemption of sales tax on food and personal hygiene products would help offset impact on essential goods, while HB900 would help offset the tax impact by decreasing the overall existing sales tax rate for goods. I also support the bill's proposed allocation of the state portion of these taxes for transportation and, in the case of HB900, schooling (especially high-need populations). These investments are important to the long-term economic well-being of our state.

On behalf of Chamber of Progress, a tech industry association supporting public policies to build a more inclusive society in which all people benefit from technological advancements, I respectfully urge you to oppose two provisions of HB 900: the new per-transaction delivery tax in Northern Virginia and the tax on business-to-business digital services. Together, these provisions would raise costs on Virginia families both directly, through a new $0.20 tax on every delivery, and indirectly, by taxing the digital business inputs that power Virginia's economy and passing those costs through to consumers.

To the Chair and Members of the Committee, My name is Kenji Hisatsune, and I am the owner and operator of Hanabi Ramen in Arlington, Virginia. I am writing to respectfully, strongly oppose a proposed delivery tax. Before opening Hanabi Ramen, I spent decades working in the technology and gaming industry but after retiring in 2016, I decided to pursue a lifelong dream of opening my own restaurant. I chose Arlington, Virginia because I believed there was an opportunity to bring authentic, high-quality Japanese ramen to the community. Since opening in 2017, I have been deeply involved in every aspect of the business, from recipe development to staff training. Hanabi Ramen employs 14 people, and maintaining quality and consistency requires significant time, care, and investment. Staffing remains one of the greatest challenges we face, and every additional cost makes it harder to operate sustainably. We partner with DoorDash, which accounts for roughly 10% of our sales. While my passion remains serving guests in person, delivery plays an important role in reaching new and repeat customers and supporting overall business stability. It also helps customers who may not be able to dine in regularly still enjoy our food. The delivery tax this committee is considering would add another financial burden on both customers and restaurants. In an industry with thin margins, even small increases in cost can have outsized effects. Delivery taxes risk discouraging customers from ordering and reducing revenue that supports local jobs and small businesses. Virginia’s restaurant community thrives when policies support, not penalize, innovation and accessibility. I respectfully urge the committee to reject a delivery tax and consider the real-world impact it would have on small, local owner-operated businesses like mine. Thank you for your consideration. Sincerely, Kenji Hisatsune Owner, Hanabi Ramen

To the Chair and Members of the Committee, My name is Masoud Shoja, and I am a Virginia small business owner who has worked in the restaurant industry for more than 15 years. My family opened our first restaurant in 1997, and today we operate more than a dozen small businesses, including Reston Kabob, Grill Kabob, Ivy by the Lake, and Eat More Taco. I am a part of the fabric of our state’s small business community and I am proud to submit this testimony in opposition to a proposed delivery tax. Working alongside my family has been one of the most rewarding parts of my life. We built our businesses from the ground up, starting with very little, and over time we have grown by reinvesting in our communities. I have watched Virginia grow, and I am proud to be part of that growth. I have also been in this industry long enough to remember what it was like before delivery platforms existed. In the past, restaurants were limited by geography. Today, delivery partners allow us to reach customers 15 to 20 miles away, something that was simply not possible before. Delivery from apps like DoorDash now accounts for nearly 35% of our total orders, and it plays a major role in sustaining our businesses. Beyond expanding our customer base, delivery platforms like DoorDash have also given us valuable branding and promotional tools. They help new customers discover our restaurants and keep existing customers coming back. This is especially important in an industry with tight margins and intense competition. The delivery tax this Committee is considering would directly harm our bottom line by adding yet another cost to an already challenging industry. Restaurants are still facing rising food prices, labor shortages, and higher operating expenses. Adding a tax to delivery orders would either reduce demand or force businesses or customers to absorb costs they cannot afford. Ultimately, delivery taxes do not fall on large corporations, they fall on small business owners like me, workers like those we employ, and the customers who keep our doors open. I respectfully ask the committee to consider the impact this policy would have on local restaurants like mine and to reject a delivery tax. Thank you for your time and consideration. Sincerely, Masoud Shoja

See attached.

To the Chair and Members of the Committee, My name is Mohammad Ali from Northern Virginia, and I am the owner of America’s Best Wings. I opened my first location five years ago, and by 2025, we had grown to six locations across the state. I am proud of that growth, and I am submitting this testimony to express my strong opposition to a proposed delivery tax. Like many Virginia businesses, my company has evolved over time to meet the growing demand for online food delivery. Today, we rely heavily on consumers ordering food for delivery - both through third-party platforms and directly from our stores. Delivery is not a luxury for our customers: it is an essential service. Delivery plays a particularly important role during inclement or unpredictable weather. Many of our customers choose delivery because they have families at home, safety concerns, or other reasons that make driving difficult or unsafe. In my view, more delivery drivers on the road often means fewer individual cars overall, contributing to safer streets. Even in good weather, delivery provides access to food for people who are unable to drive due to age, disability, or other circumstances. What I love most about being a business owner is being able to provide quality, affordable food to my community. During the COVID-19 pandemic, when the cost of chicken rose dramatically, I made the decision not to raise prices. I did not want to shift that burden onto my customers, many of whom were already struggling. That is why I was upset when I learned about the new proposed delivery tax the legislature is considering. If this tax is imposed on consumers, it will discourage people from ordering online and hurt small businesses like mine. Most retailers today rely on delivery as part of their business model. Many have downsized their physical footprints specifically to serve customers through delivery. Imposing a new tax punishes businesses and consumers who have adapted to meet modern demands and needs. In this economy, consumers are already penny-pinching. Adding another fee simply to raise state revenue creates unnecessary hardship. With millions of Virginians ordering delivery, this tax would take tens of millions of dollars out of consumers’ pockets – money that could otherwise support local businesses and families. I respectfully urge the committee to reject a delivery tax and to consider the unintended consequences it would have on safety, affordability, and small businesses across Virginia. Thank you for your time and consideration. Sincerely, Mohammad Ali Owner, America’s Best Wings

Please see attached testimony from the Metropolitan Washington Council of Governments in support of HB900 and dedicated funding for Metro.

Delegate Watts and Delegate Sullivan, Please see comments attached regarding HB 900 and HB 978. Thank you. Respectfully submitted, Daniel Bryant Self Storage Association

Dear Chairman Sullivan, and Members of the Subcommittee, I am submitting for the record, comments regarding HB 900 and HB978. Thank you for your time and consideration. Zane Kerby President and CEO, American Society of Travel Advisors

Abjectly opposed to ANY new taxes for ANY reason. We have an overabundance of money in this state as it is and are taxed enough.