Tax Type
Litter Tax
Description
Farm selling fresh fruit and vegetables
Topic
Taxability of Persons and Transactions
Date Issued
11-03-1986
November 3, 1986
Re: Ruling Request
Litter Tax
Dear ******************
This is in reply to your letter of April 15, 1986 in which you request a ruling regarding the applicability of the Virginia Litter Tax to your business.
FACTS
You operate a small farm which produces fresh fruit and vegetables for sale. The farm operates from April through November and is closed the rest of the year. You take telephone orders for the produce, package the order and deliver it to an independent retailer. The customer pays the independent retailer for the produce when they pick up their order. In the agreement between the independent retailer and the farm, the farm retains title to the produce until the customers pay for the produce.
RULING
The Virginia Litter Tax is imposed upon every "person" in the state who is engaged in business as a manufacturer, wholesaler, distributor or retailer of certain enumerated products. The tax is imposed at a rate of $10 per establishment from which business is conducted. An additional litter tax of $15 per establishment from which business is conducted is imposed upon every "person" who is engaged in business as a manufacturer, wholesaler, distributor or retailer of groceries, soft drinks, carbonated waters, beer and other malt beverages.
"Groceries" are defined by the Virginia Litter Tax Regulations as:
-
- ... all foodstuffs, beverages, meats, produce, dairy products, and household supplies, of the type sold by grocers. "Household supplies" does not include dishes, cooking utensils and reusable food containers. (Emphasis added.)
- ... all foodstuffs, beverages, meats, produce, dairy products, and household supplies, of the type sold by grocers. "Household supplies" does not include dishes, cooking utensils and reusable food containers. (Emphasis added.)
The customer places his order with you and you package and deliver the produce to an independent retailer. You retain title to the produce until the customer pays for it. Even though the produce that you sell is delivered by you to an independent retailer, at whose business location your customer pays for and picks-up the produce, you are still the retailer of such produce.
Accordingly, you are in the retail business of making sales of "groceries"; therefore, your business is subject to both the $10 litter tax and the additional $15 litter tax.
If you have any further questions, please do not hesitate to contact this office.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner