Tax Type
Litter Tax
Description
Taxpayer is not liable for litter tax
Topic
Persons Subject to Tax
Property Subject to Tax
Date Issued
03-02-2012
March 2, 2012
Re: § 58.1-1821 Application: Litter Tax
Dear *****:
This reply is in response to your letter submitted on behalf of ***** (the "Taxpayer"), in which you request correction of the litter tax assessment issued for the period January 2010 through December 2010. I apologize for the delay in responding
to your letter.
FACTS
The Taxpayer owns and rents residential property. The Taxpayer filed a litter tax return and paid the tax for the period January 2009 through December 2009. In May 2011, the Taxpayer received a Notice of Assessment of litter tax from the Department for the period January 2010 through December 2010.
The Taxpayer protests the assessment and contends that it neither operates a business nor sells the products that would require it to pay the tax. Accordingly, the Taxpayer requests abatement of the assessed litter tax and a refund of the litter tax it believes it paid in error.
DETERMINATION
Virginia Code § 58.1-1707 imposes an annual litter tax on all manufacturers, wholesalers, distributors or retailers of the products enumerated in Va. Code § 58.1-1708 for each establishment from which these businesses are conducted.
Virginia Code § 58.1-1708 provides that the litter tax is imposed on manufacturers, wholesalers, distributors and retailers of food for human or pet consumption; groceries; cigarettes and tobacco products; soft drinks and carbonated waters; beer and other malt beverages; wine; newspapers and magazines; paper products and household paper; glass containers and metal containers or plastic or fiber containers made of synthetic material; cleaning agents and toiletries; nondrug drugstore sundry products; distilled spirits; and motor vehicle parts.
Based on the foregoing, the Taxpayer is not liable for litter tax as it does not produce or sell the products enumerated in Va. Code § 58.1-1708. Accordingly, I agree that the Taxpayer paid the litter tax erroneously for 2009 and is not liable for the additional tax for 2010. As a result, the tax assessment for 2010 will be abated.
Virginia Code § 58.1-1823 authorizes the refund of any tax administered by the Department within three years from the date such tax was paid. Accordingly, the Taxpayer is entitled to a refund for the erroneously remitted litter tax for 2009. The Taxpayer should expect a refund shortly.
The Code of Virginia sections cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's website. If you have any questions about this determination, you may contact ***** in the Department's Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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- Craig M. Burns
Tax Commissioner
- Craig M. Burns
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AR/1-4835485548.M
Rulings of the Tax Commissioner