Tax Type
Egg Excise Tax
Description
Out-of-state supplier
Topic
Collection of Tax
Date Issued
12-29-1986
December 29, 1986
Re: Ruling Request: Egg Excise Tax
Dear ***************
This will reply to your letter of October 8, 1986 concerning the Virginia egg excise tax. You indicate that Taxpayer purchases eggs from a producer in North Carolina. Taxpayer, as a warehouse operation, subsequently ships the eggs to its retail stores operating in Virginia for resale to its customers. You ask whether Taxpayer is subject to payment of the Virginia egg excise tax.
The 1985 General Assembly amended §3.1-796.11:3 of the Code of Virginia to narrow the levy of the egg excise tax to eggs produced or sold in Virginia (see enclosed impact statement). Previously, the tax had been imposed on eggs produced, purchased, processed, sold, graded or otherwise handled in Virginia. As a result of the 1985 amendment, therefore, eggs produced in North Carolina are not subject to the Virginia tax. However, when those eggs are sold in Virginia, they are subject to the tax. Therefore, I am of the opinion that Taxpayer is subject to payment of the Virginia egg excise tax for eggs sold in Virginia to its customers. I would note that the tax is levied only one time.
I trust the foregoing will answer your query. Please let me know if you have additional questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner