When ‘services’ mean essentials: A tax proposal could hit Reston hard
- The Reston Letter Staff
- 20 hours ago
- 2 min read
By Susan Kousek, Reston resident
A proposed Virginia bill could have significant implications for Reston residents, particularly those already feeling the squeeze of rising costs. House Bill 978 would expand the state’s sales and use tax to include a wide range of services—many of them routine or essential parts of daily life in our community.
The proposal raises questions locally. Why now, especially after Virginia closed the last fiscal year with a sizable budget surplus? And why target services that many families, seniors, and small businesses rely on—not luxuries, but necessities?
If HB 978 passes, Reston residents would pay sales and use tax on the following services:
Admissions, including movie tickets and events
Recreation, fitness, and sports facilities, from gyms to youth programs
Non-medical personal services or counseling, such as in-home support for seniors, people with disabilities, or individuals recovering from illness. These services can include help with bathing, dressing, eating, medication reminders, transportation, and other daily needs
Dry cleaning and laundry services
Companion animal care, including veterinary wellness exams, grooming, training, and other services that support pets’ physical and emotional well-being
Residential home repair, maintenance, landscaping, or cleaning services when paid directly by homeowners
Vehicle or engine repair
Repairs or alterations to tangible personal property, such as furniture, appliances, or jewelry
Storage of tangible personal property, including long-term storage units
Delivery and shipping services, with reports elsewhere suggesting a per-delivery charge
Travel, event, and aesthetic planning services, such as wedding or event planners
The bill also proposes new taxes on digital services, defined as software application services, computer-related services, website hosting and design, data storage, and digital subscription services. According to the bill, these taxes would apply when the purchaser is a business, although services otherwise exempt under existing law would remain exempt.
In addition, digital personal property—defined as digital products delivered electronically that a purchaser owns or can continually access without an ongoing subscription fee—would also be taxed.
For Reston’s many small business owners and self-employed professionals, the bill carries added responsibilities. Anyone offering these services would be required to register for a Virginia sales tax number, collect the tax from customers, and remit it to the Virginia Department of Taxation on a monthly or quarterly basis.
Call to Action
HB 978 was referred to the Virginia House Finance Committee on Jan. 13. Residents who oppose the bill are encouraged to contact their state representatives promptly.
House Finance Committee Chair Delegate Vivian Watts, who introduced the bill, can be reached at delvwatts@house.virginia.gov.
Residents can find their own state representatives by entering their address at:
For Reston residents, current representatives include:
Delegate Karen Keys-Gamarra, District 7 (House Finance Committee)
804-698-1007 | DelKKeys-Gamarra@house.virginia.gov
Sen. Jennifer B. Boysko, District 38
Capitol: 804-698-7538
District: 703-437-0086
A full list of House Finance Committee members is available at: