VA HB978

Expands Virginia's sales and use tax to cover a broad range of services previously untaxed, including admissions to events and entertainment venues, fitness and recreation facility fees, personal care services (hair, nail, skin care, tanning), dry cleaning, pet grooming and boarding, and residential home repair and maintenance.

Creates new tax categories for digital products and services, including software applications, data storage, website hosting, and digital subscription services such as audio and video streaming platforms.

Applies the existing 4.3% state sales tax rate to the newly taxable services and digital products, treating them the same as tangible personal property for tax purposes.

Defines "digital personal property" as electronically delivered products including software, digital audio/video, and reading materials that purchasers own or can continually access after paying the initial price.

Exempts from the new service taxes any procedures requiring licensed medical or veterinary professionals, and excludes residential services that require state or local permits.