A recent letter from a taxpayer to the Virginia Tax Commissioner inquired whether or not the sale of five gallon and smaller bottles of water dispensed from water coolers qualified for the reduced sales tax rate when sold to both Virginia residential and business customers. The reduced tax rate for sales of food purchased for human consumption applies to bottled drinking water because it is considered an “accessory food” item that qualifies for the reduced rate. Also, the size of the containers used is irrelevant in determining the application of the sales tax. (Ruling of Commissioner, P.D. 06-98, Virginia Department of Taxation, September 29, 2006)