Apple Excise Tax
General Liability: The producer is liable for the payment of the tax on all apples grown for sale. A producer is defined as any person who, in a calendar year, grows or causes to be grown within the Commonwealth of Virginia, for sale, a minimum of 5,000 tree run bushels of apples. Tree run bushel means a container, with a content of not less than 2,140 cubic inches or more than 2,500 cubic inches, of apples that have not yet been graded or sized. An excise tax is levied on apples grown in Virginia for sale by a producer.
Filing Procedure: Producers do not need to register for the Apple Tax using Form R-1.
The Apple Excise Tax return, Form APL-45, must be filed by the producer with the Virginia Tax on an annual basis. The annual period for the return runs from January 1 through December 31. The return is due and the tax payable on January 31 of the following year.
Assessment Rate: The tax is 2.5 cents per tree run bushel.
General Liability: An assessment is levied on corn produced in Virginia for sale. The handler (defined as a processor, dealer, shipper, country buyer or exporter who purchases corn from farmers, a farmer who sells his/her corn out of state, or any person acquiring property in corn from a producer, when the actual or constructive possession of such corn is taken as part payment or in satisfaction of such claim) is responsible for payment of the assessment. The assessment must be deducted by handlers from payments to farmers for corn purchased.
Filing Procedure: Handlers must file acorn assessment return, Form CO-1, with Virginia Tax on a quarterly basis even if no tax is due. Returns are due by the last day of the month following the end of each quarter. Quarters end March 31, June 30, September 30, and December 31.
Assessment Rate: The assessment is 1 cent per bushel.
General Liability: An assessment is levied on any cotton sold in Virginia. The handler is responsible for deducting the assessment from payments for cotton purchased from the owner. For purposes of this tax, "handler" means a commercial enterprise that gins cotton.
Filing Procedure: A return, Form CX1, must be filed and the tax paid on or before the last day of the month following the end of each quarter. Quarters end March 31, June 30, September 30, and December 31.
Assessment Rate: The assessment for cotton ginned on or after September 1, 2006 is $.95 per bale. The assessment for cotton ginned prior to September 1, 2006 is $.85 per bale.
Egg Excise Tax
General Liability: A tax is levied on shell eggs and egg products sold or consumed in Virginia. The handler of such eggs is responsible for payment of the tax. For purposes of this tax, "handler" includes:
- Any person who operates a grading station, a packer, a huckster, a distributor, or other person who purchases, sells, or handles eggs that are used at the wholesale level for consumption in Virginia, or a farmer who packs, processes, or otherwise performs the functions of a handler; or
- Any person in Virginia who purchases eggs, or the liquid equivalent thereof, from anyone other than a registered handler for use or consumption at wholesale in Virginia. Every person, whether in-state or out-of-state, who engages in business in the Commonwealth as a handler, is required to register. Generally, the last handler who sells eggs or egg products to a retailer or food service establishment located in Virginia is responsible for collecting and remitting the tax to Virginia Tax.
The term "registered handler" means any person who has registered with the Tax Commissioner for receiving monthly return forms and reporting the egg excise tax. Eggs shall be deemed to be used in Virginia if, at a Virginia location, they are incorporated into another product so as to lose their character as eggs. Eggs shall be deemed to be consumed in Virginia if they are actually consumed in Virginia or sold at a location in Virginia.
Filing Procedure: The Virginia Egg Excise Tax Report, Form EG-1, and payment of tax must be filed each month by the handler with Virginia Tax. Monthly returns must be filed and tax paid by the 20th of the following month. The supplementary egg products worksheet, Form EG-2, should no longer be filed with the Egg Board. Instead, handlers should maintain a copy in their records.
Tax Rate: The tax rate is 5 cents per case (30 dozen) for shell eggs, and 11 cents per hundred pounds of liquid eggs or liquid equivalent of other egg products.
Forest Products Tax
Effective July 1, 2015, House Bill 1724, enacted by the 2015 Session of the General Assembly, shifts the imposition of the Forest Products Tax to the first manufacturer, except in the case of certain small severers. The change moves the imposition of the tax from processors in the woods to commercial taxpayers operating from fixed places of business. For details on the transition, including examples, see Tax Bulletin 15-5 and the Frequently Asked Questions.
General Liability: Effective July 1, 2015, the Forest Products Tax is imposed on the first manufacturer using, consuming, processing, or storing the forest product for sale or shipment out of state unless the tax has been previously paid by the severer of the forest products. If there is no manufacturer or the manufacturer is not registered for the tax, then the tax is levied on the severer of the forest products. For purposes of this tax, “manufacturer” means any person who for commercial purposes at a fixed place of business (i) processes forest products into various sizes and forms, including chips; (ii) processes forest products into other products; (iii) uses or consumes forest products; or (iv) stores forest products for sale or shipment out of state. The tax also applies to the severance of timber and other forest products from Virginia soil, including land owned by the Commonwealth or by the United States within the geographical confines of Virginia, where the forest products severed enter commercial channels of trade for competitive markets.
Exemptions: For a list of exemptions from the Forest Products Tax, please refer to Va. Code § 58.1-1608.
Registration: To register for the Forest Products Tax, a Business Registration Application, Form R-1, must be filed with Virginia Tax. Registration can be completed online at www.tax.virginia.gov/iReg.
Filing Procedure: The Forest Products Tax Return, Form 1034, must be filed and the tax paid with Virginia Tax within 30 days after the close of each calendar quarter. Quarters end March 31, June 30, September 30, and December 31. Due dates are April 30, July 30, October 30, and January 30, respectively. Small manufacturers and severers may qualify for an alternative method of filing; please see the Small Manufacturers and Certain Small Severers section below.
Tax Rates: The rates on forest products vary depending on the type of lumber. A list can be found under Va. Code § 58.1-1604
Small Manufacturers and Certain Small Severers:
Small Manufacturers and Certain Small Severers who meet the qualifications listed below may elect to file annually. Taxpayers who file annually must submit Form 1035, Forest Products Tax Return - Small Manufacturers and Certain Small Severers. The annual return must be filed and the tax paid by January 30 each year.
Small Manufacturers: Any manufacturer of rough lumber, who during any one calendar year manufactures 500,000 or less board feet, may elect to pay a flat tax of (1) $460 when the amount cut is between 300,000 board feet and 500,000 board feet; or (2) $230 when the amount is 300,000 board feet or less.
Certain Small Severers: Any person who severs for sale 100 or less cords of fuel wood or 500 or less posts or fish net poles during any one calendar year, may elect to file annually. Such individuals should submit a statement certifying the quantity of products severed during the preceding year with the tax return and payment.
Documentation with Respect to Small Severers: A manufacturer will not be liable for the Forest Products Tax if he has received written documentation, such as a signed agreement, bill of sale, or invoice, from the severer that the tax has been paid. Such documentation must include (i) the severer's name, address, and Virginia Forest Products Tax registration number; (ii) the date of sale or delivery; (iii) a description of the products sold or delivered; and (iv) a statement that the Virginia Forest Products Tax has been paid with regard to the forest products sold or delivered. A signed agreement, bill of sale, or invoice between a severer and a manufacturer stating that the manufacturer is registered and liable for the tax on any forest products sold or delivered to the manufacturer shall relieve the severer of liability for the tax on such forest products.
For additional information please refer to Va. Code § 58.1 - Chapter 16
Motor Vehicle Wholesale Fuel Sales Tax
The Wholesale Sales Tax is a 2.1% tax on fuels sold in the Northern Virginia area and the Hampton Roads Planning District Commission area. The Department of Motor Vehicles (DMV) administers the tax, effective July 1, 2013. Visit the DMV’s website for reporting, filing, and payment requirements.
Peanut Excise Tax
General Liability: An excise tax is levied on peanuts grown and sold in Virginia for processing. The processor is liable for the payment of the tax on all peanuts such processor purchases. A processor is defined as any person, individual, corporation, partnership, trust, association, cooperative, and any and all other business units, devices, and arrangements that clean, shell or crush peanuts.
Filing Procedure: The Peanut Excise Tax return, Form PN-1, must be filed by the processor with Virginia Tax on a semi-annual basis. The semi-annual periods for the returns run from January 1 through June 30, and July 1 through December 31. The returns are due and the tax payable on July 10 and February 15.
Tax Rate: For filing periods July 1, 2010 through June 30, 2021, the excise tax rate on peanuts is 30 cents per 100 pounds.
Rolling Stock Tax on Railroads and Freight Car Companies
General Liability: The state of Virginia levies an annual ad valorem tax on the rolling stock of railroads and freight car companies.
Filing Procedure: Each railroad and freight car company must file a return of its rolling stock on or before April 15.
Download forms from the website at Rolling Stock Forms.
Tax Rate: The tax rate is $1 per $100 of assessed value. Taxes are payable on or before June.
General Liability: An assessment is levied on sheep and lambs sold in Virginia. The handler (defined as an operator of a stockyard, livestock dealership, slaughter house, packing plant, or livestock auction market or any person or business entity making a purchase from a producer at the point at which the sheep or lamb is sold or traded) is responsible for payment of tax on all sheep and lambs. The assessment must be deducted by the handlers from payments to owners of the sheep and lambs.
Filing Procedure: A return, Form SH-1, must be filed and the tax paid on or before the last day of the month following the end of each quarter. Quarters end March 31, June 30, September 30, and December 31.
Assessment Rate: The assessment is 50 cents per head.
General Liability: The handler of small grains who purchases small grains (barley, oats, rye or wheat) produced in Virginia shall deduct from payments made to the farmer the amount of the assessment levied thereon and shall remit such assessment to Virginia Tax along with a statement of the gross volume of Virginia-produced small grains which has been handled. "Handler" means any person who purchases small grains from a farmer and includes a farmer who transports and sells his own grain out of state. "Handler" also means any person, public or private corporation, or any association or partnership buying, accepting for shipment, or otherwise acquiring property in small grains from a farmer, and shall include a mortgagee, pledgee, lienor, or other person, public or private, having a claim against the farmer, when the actual or constructive possession of such small grains are taken as part payment or in satisfaction of such mortgage, pledge, lien, or claim.
Filing Procedure: A Small Grains Assessment must be filed with Virginia Tax along with payment for the amount collected from farmers in the previous quarter. Returns are due by the last day of the month following the end of the quarter. Quarters end March 31, June 30, September 30, and December 31.
Assessment Rate: The assessment rate is one-half of one percent (.005) of the net selling price per bushel.
For Forms: www.ams.usda.gov
Soft Drink Excise Tax
General Liability: An excise tax is levied on every wholesaler or distributor of carbonated soft drinks in Virginia.
Filing Procedure: Effective July 1, 2002, the Soft Drink Excise tax increased to $7,200 for gross receipts over $10,000,000 through $25,000,000 and two additional tax brackets were added for gross receipts over $25,000,000. The new rates are effective for filing periods beginning on or after July 1, 2002.
The soft drink excise tax return, Form 404, must be filed with Virginia Tax on or before the 15th day of the fourth month following the close of the taxpayer's taxable year. For calendar year taxpayers, other than corporations, the due date is May 1.
Extensions: An automatic six-month extension of time to file the Soft Drink return is granted to the date six months after such due date or 30 days after the extended date for filing the federal income tax return, whichever is later, provided the full amount estimated as the tax due has been paid on or before the original due date. Interest will accrue on the tax due with any return filed under extension.
|Gross Receipts||Amount of Tax|
|$100,000 or less||$50.00|
|$100,001 - $250,000||$100.00|
|$250,001 - $500,000||$250.00|
|$500,001 - $1,000,000||$750.00|
|$1,000,001 - $3,000,000||$1,500.00|
|$5,000,001 - $10,000,000||$4,500.00|
|$25,000,001 - $50,000,000||$18,000.00|
|$50,000,001 and over||$33, 000.00|
General Liability: The first-buyer of soybeans (whoever pays the producer) is responsible for collecting a soybean assessment from the producer. First-buyers will be required to collect on all soybeans purchased (provisions are in place to identify soybeans checked-off at a previous sale point) regardless of the state of origin.
Filing Procedure: The Soybean Promotion, Research and Consumer (SPARC) Assessment Report (this is a federal form) must be filed with Virginia Tax by the first-buyer on a quarterly basis. Returns are due by the last day of the month following the end of each quarter. Quarters end March 31, June 30, September 30, and December 31.
The SPARC must be filed even if no tax is due.
Assessment Rate: The assessment rate is one-half of one percent (.005) of the net market value of assessed bushels.
For Forms: www.ams.usda.gov
For further assistance, please contact 804.786.2450.