As of September 1, 2004, the state sales and use tax rate on sales of non-food items and vending machine sales will increase. Sales of food for home consumption will retain its current state tax rate. This rate will continue to decrease on July 1, 2006 and July 1, 2007. The additional 1% local rate will remain the same for all taxable purchases. Regardless of the date of delivery, as long as the tangible personal property is paid for prior to September 1, 2004 the sale of the non-food item will be subject to the previous combined rate. Also effective September 1, 2004, purchases of tangible personal property by most public service corporations will no longer be exempt. These corporations include electric, gas and water utilities, telecommunications companies, and motor vehicle common carriers. Railway common carriers will continue to retain the exemption. Further details and additional legislative changes are available at the state’s website. (Virginia Sales and Use Tax Legislative Changes and Virginia Retail Sales and Use Tax Rate Increase Guidelines, Virginia Department of Taxation, August 1, 2004.)