Tax Type
Egg Excise Tax
Description
Application to egg handler with out-of-state divisions
Topic
Basis of Tax
Date Issued
12-11-1985
December 11, 1985
Re: Ruling Request: Egg Excise
Dear ****
This will reply to your letter of September 9, 1985, concerning the applicability of the Virginia Egg Excise Tax to the ***** Virginia and ***** Maryland divisions of ***** (the "Company").
FACTS
You indicate that the ***** division buys primarily from two Virginia and one North Carolina producer/packers and occasionally from other suppliers outside Virginia. In each instance, the producer is the first handler bringing the eggs into Virginia. The Company then reships the cartoned eggs from its receiving warehouse/distribution center in ***** Virginia to its retail stores in North Carolina and Virginia.
You further indicate that the Washington, D.C. division buys cartoned eggs from producer/packers in Pennsylvania, Maryland, North Carolina and Virginia. The eggs are delivered to the Company's ******** Maryland warehouse/distribution center for reshipping to its retail stores in Pennsylvania, Maryland, Washington, D.C. and Virginia.
You ask what effect the 1985 amendment to Virginia Code Section 3.1-796.11:3 has on the Company's liability. As a result of that amendment, the egg excise tax is imposed only on eggs sold or produced in Virginia. The tax continues to be imposed only once on each egg.
DETERMINATION
The Company is a handler by virtue of Virginia Code Section 3.1-796.11:4 B because it purchases eggs for sale or distribution. To the extent the ***** division is not the first handler in Virginia of the eggs, it continues to be exempt from the tax.
The Washington, D.C. division would be liable for any eggs produced or sold in Virginia for which it was the first handler in Virginia.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner