Agencies | Governor
Virginia Regulatory Town Hall

Proposed Text

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Action:
Repeal of Egg Excise Tax Regulation Not Necessary for ...
Stage: Fast-Track
 
23VAC10-60

CHAPTER 60
VIRGINIA EGG EXCISE TAX (REPEALED)

23VAC10-60-40

23VAC10-60-40. Handler to deduct tax from payment to farmers; report and payment of tax by handler. (Repealed.)

A. Generally. The handler of eggs is responsible for remitting the egg promotion tax as regulated herein to the Tax Commissioner. If the handler purchases eggs subject to the promotion tax from farmers, the handler must deduct the promotion tax from payments made to farmers for the eggs. All egg handlers must register with the Tax Commissioner for receiving the monthly returns and reporting the egg promotion tax. Application for registration should be submitted to the Department of Taxation, Registration Unit, P.O. Box 1880, Richmond, VA 23282-1880.

B. Handler defined. The term "handler" means any person who operates a grading station in Virginia, a packer, huckster or distributor who handles eggs in Virginia or a farmer who packs, processes, or performs the functions of a handler in Virginia. "Handler" also includes any person in Virginia who purchases eggs for sale, distribution, or consumption or any farmer in Virginia who sells or distributes eggs to anyone other than a registered handler.

For purposes of the egg excise tax, the functions of a handler of eggs include the sale, distribution or other disposition of eggs in Virginia regardless of where the eggs were produced or purchased. Therefore, the term "handler" includes an out-of-state farmer, packer, processor, distributor or other business which delivers eggs into Virginia for sale, distribution or other disposition regardless of where the eggs were produced and also includes the purchase of eggs in Virginia for sale, distribution or other disposition without Virginia. The term "handler" also includes an in-state farmer, packer, processor, distributor or other business which purchases eggs out-of-state and transports such eggs into Virginia for sale, distribution or other disposition.

Example 1: Company A, an egg processor/distributor located in Alabama, delivers eggs produced in Alabama to Richmond, Virginia for sale. Company A is the egg handler and is responsible for filing the egg promotion tax return with the Commonwealth of Virginia and remitting the tax due.

Example 2: Company B, an egg processor/distributor located in Virginia, purchases eggs produced in South Carolina. Company B transports the eggs from South Carolina to its distribution facility in Virginia for grading, packing and ultimate distribution into six states. Company B is considered a handler and must file the egg promotion tax return with the Commonwealth of Virginia remitting the tax due upon the eggs distributed for consumption within and without Virginia. Eggs purchased without Virginia and processed in Virginia for distribution and consumption without Virginia are deemed subject to tax.

Example 3: Company C, an egg processor/distributor located in Virginia, purchases eggs produced in Georgia. Company C transports the eggs from Georgia to its distribution facility in Virginia and unloads one-half of the shipment in Virginia. The balance of the shipment remains intact and is transported to the Maryland distribution center of Company C. Company C is considered a handler and must file the egg promotion tax return with the Commonwealth of Virginia, remitting the tax due upon the eggs unloaded in Virginia. The remainder of eggs are deemed to have remained in interstate commerce and are not subject to the Virginia egg promotion tax.

C. Registered handler defined. The term "registered handler" means any person who has registered with the Tax Commissioner for receiving monthly returns and is reporting the egg promotion tax.

Every person, whether inside or outside this commonwealth, who engages in business in the Commonwealth as a handler, is required to register and to collect and pay the tax on all eggs sold or delivered for processing, storage, use or consumption in this Commonwealth and to file returns and perform all other duties required of handlers.

D. Handler returns. The egg promotion tax returns must be filed by the handler monthly and are due no later than the twentieth day of each month. Each return shall report the gross volume of eggs packed, processed or handled by the handler during the preceding month and the volume of eggs subject to the egg promotion tax. Each handler must file the return with the Department of Taxation, P.O. Box 1880, Richmond, VA 23282-1880 and, simultaneously, file a copy of the completed form with the Virginia Egg Board.

E. Payment of tax by handler. Monthly, each handler must pay the egg promotion tax due. The return, with applicable tax payment, is due by the twentieth day of each month. The tax receipts shall be deposited by the Tax Commissioner into the state treasury and credited to the Virginia Egg Fund.

23VAC10-60-50

23VAC10-60-50. Exemptions. (Repealed.)

A. Eggs of any person selling less than 500 cases per year are exempt from the egg promotion tax.

B. If a producer (farmer) sells less than 500 cases of eggs in any year and the egg promotion tax has been paid on such eggs, an application for refund of the erroneous tax paid should be filed with the Department of Taxation. The refund application must be accompanied by substantiating information showing why the refund is due. Such information shall include the name and address of each handler purchasing eggs, quantity of eggs sold to each handler, date of sale, and amount of tax withheld from payments to farmer. After the Tax Commissioner reviews and approves the refund application, such refund shall be made to the producer (farmer).

23VAC10-60-9998

FORMS (23VAC10-60)

Virginia Egg Excise Tax Return, Form EG-1 (rev. 5/06).

Worksheet for Virginia Egg Board and Conversion Calculations for Egg Products, Form EG-2 (rev. 5/05).

Business Registration Application, Form R-1 (rev. 3/08).