01/20/2026
PSA TO ALL CURRENT AND POTENTIAL CLIENTS
This is why voting matters!!
This proposed Virginia legislation (HB978) would significantly affect pet grooming businesses through the expansion of sales tax to include various services.
Key Impacts on Pet Grooming Businesses:
New Tax Requirements:
∙ Pet grooming services would become subject to Virginia’s sales tax (currently 4.3% state rate, plus any applicable local taxes)
∙ The bill defines “companion animal care” as a taxable service, which specifically includes:
∙ Grooming
∙ Boarding
∙ Walking
∙ Training
∙ Feeding
What’s Excluded:
The tax would NOT apply to:
∙ Veterinary medical procedures
∙ Services that require licensing/certification by the Board of Veterinary Medicine
∙ These must be separately billed to remain exempt
Practical Implications:
1. Pricing Impact: Groomers would need to either absorb the tax or pass it along to customers, making services more expensive
2. Administrative Burden: Businesses would need to:
∙ Register as tax collectors with the state
∙ Collect sales tax on grooming services
∙ File regular tax returns
∙ Maintain proper records
1. Competitive Considerations: The tax would apply uniformly to all pet grooming businesses in Virginia, so all would face the same requirements
2. Small Business Exemption: There is an exemption for services where the provider receives less than $2,500 per year in gross receipts, which might apply to very small operations
This represents a significant change, as pet grooming services are not currently subject to Virginia sales tax.
Since transparency is important to us, we want to inform our clients that if this bill passes, there may be a price increase due to taxes.
