Agencies | Governor
Virginia Regulatory Town Hall

Proposed Text

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Action:
Amend Corn Excise Tax Regulation to Update the Tax Rate and ...
Stage: Fast-Track
 
23VAC10-55-40

23VAC10-55-40. Handler to deduct assessment from payment to farmer; report Report and payment by handler.

A. Definition. The following word or term when used in this section shall have the following meaning unless the context clearly indicates otherwise:

"Handler" means any person, firm, corporation or any other business entity that is a processor, dealer, shipper, country buyer, exporter that handles corn produced in Virginia, or farmer who sells his corn out of state or to anyone other than a "handler."

B. Generally. The handler of corn is liable for remitting the one-quarter cent $ .01 per bushel corn excise tax to the Tax Commissioner as regulated herein. If the handler purchases, from farmers, corn subject to the excise tax, the handler must deduct the excise tax from any payment made to the farmer for the corn. All corn handlers must register with the Tax Commissioner for receiving the quarterly corn excise tax returns and reporting the corn excise 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, firm, corporation or any other business entity who is a processor, dealer, shipper, country buyer, exporter who handles corn produced in Virginia or a farmer who sells his corn out of state or to anyone other than a "handler."

C. Examples.

Example 1: Farmer A grows corn in Virginia and sells the harvested crop for processing to Processor B located in North Carolina. Farmer A is the "handler" and responsible for remitting the Virginia Corn Excise Tax to the Virginia Department of Taxation.

Example 2: Farmer E grows corn in Virginia and sells the harvested corn for processing to Processor F located in Virginia. Processor F is the "handler" and is responsible for collecting from the farmer and remitting the Virginia Corn Excise Tax to the Virginia Department of Taxation.

Example 3: Farmer G grows corn in Virginia and sells the harvested crop for seed to Farmer H. Farmer G is the "handler" and is responsible for remitting the Virginia Corn Excise Tax to the Virginia Department of Taxation.

C. Handler return. The corn excise tax returns must be filed by the handler quarterly and are due on or before the last day of the month following the end of the period. The quarters are January 1 through March 31, April 1 through June 30, July 1 through September 30 and October 1 through December 31. Each return shall report the gross volume of corn which has been handled by the handler during the quarter. Each handler must file the return with the Department of Taxation, P.O. Box 1880, Richmond, VA 23282-1880.

D. Payment of tax by handler. Each handler must pay the corn excise tax. The return, with applicable tax payment, is due by the last day of the month following the end of each quarter. (Due dates are April 30, July 31, October 31, and January 31). The tax receipts shall be deposited by the Tax Commissioner into the State Treasury and credited to the Virginia Corn Fund.

23VAC10-55-50

23VAC10-55-50. Records to be kept by handlers. (Repealed.)

A. Generally. Every handler of corn subject to the corn excise tax must keep complete records on the corn handled by him. The handler must keep and preserve the records for at least three years following the date the tax is reported on such corn.

Note: While § 3.1-1045 of the Code of Virginia specifies records must be preserved for a period not less than two years from the time the corn was handled, the statute of limitations under § 58.1-1812 of the Code of Virginia provides for a three year period for assessment of deficiencies. In order to prevent any undue burden upon the taxpayer, in the event of audit, the record retention period has been extended to the same limitation as the assessment statute of limitations.

B. Examination by Commissioner. The Tax Commissioner, or his duly authorized agents, may examine during the usual business hours of the day records, books, papers, or other documents of the handler to verify the truth and accuracy of any return, statement, or other relevant information.

23VAC10-55-9998

FORMS (23VAC10-55)

Virginia Corn Assessment Return Instructions, Form CO-AR W (rev. 5/06).

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

Form CO-1, Virginia Corn Assessment Return and Instructions (CO-AR W) (rev. 5/2006)

Form R-1, Business Registration Form (1501220) and Instructions (1501228) (rev. 3/2015)