Bulletin Number
VTB 87-1
Tax Type
Egg Excise Tax
Description
Egg Excise Tax
Topic
Basis of Tax
Rate of Tax
Date Issued
05-01-1987
Legislative Change: Egg Excise Tax
Chapter 173 of the 1985 Acts of Assembly (House Bill 1096) amended §3.1-796.11:3 of the Code of Virginia by narrowing the definition of eggs subject to the Virginia Egg Excise Tax to those eggs produced or sold in Virginia. This change was communicated to egg handlers and others by Virginia Tax Bulletin 85-15 , dated July 15, 1985.
It has come to our attention that some eggs which are not produced or sold in Virginia are being taxed by handlers registered to collect the Virginia Egg Excise Tax. The confusion arose when some out-of-state egg handlers shipped eggs produced in their state to Virginia to be graded, packed and shipped back to their state for sale, and the Virginia Egg Excise Tax was collected on those eggs. Because such eggs were not produced or sold in Virginia, the tax should not have been collected and reported. Eggs can be processed, graded or otherwise handled in Virginia, but they are only subject to the Virginia Egg Excise Tax if they are produced or sold in Virginia.
Questions regarding taxation of specific transactions may be directed to the Taxpayer Assistance Section, Office Services Division, Virginia Department of Taxation, at P. O. Box 6-L, Richmond, Virginia 23282, or (804) 257-8046.
Tax Bulletins