Bulletin Number
VTB 82-18
Tax Type
General Provisions
Description
Agricultural Cooperative Associations
Topic
Exemptions
Date Issued
06-30-1982
Virginia Tax Bulletin
DATE: June 30, 1982
SUBJECT: Agricultural Cooperative Associations
H.B. 923, enacted by the 1982 Session of the General Assembly, substantially broadens the tax exemption for agricultural associations. The current exemption in § 13.1-341 provides that an association shall pay an annual license fee of ten dollars in lieu of all other corporation, franchise and income taxes, taxes on capital, taxes and charges upon reserves held by the association, and all state and local license taxes on that part of its business which is solely and exclusively the storing and marketing of farmers' crops.
As amended, § 13.1-341 broadens the exemption to include the storing and marketing of agricultural products instead of farmer's crops or products including dairy products, fruit or livestock. The marketing of agricultural products includes all functions involved in transferring title and in moving goods from producer to consumer, including buying, selling, processing, packing, storing, transporting, standardizing, financing, risk bearing and supplying market information.
Agricultural products of Agricultural Cooperative Associations are defined in § 13.1-313 to include livestock and livestock products, dairy products, poultry and poultry products, seeds, nuts, ground stock, horticultural, floricultural, forestry, bee and any and all kinds of farm products.
An agricultural cooperative association continues to be taxable on any business that it engages in other than those specifically exempted by statute. The amendments are effective July 1, 1982.
Tax Bulletins