Tax Type
Soft Drink Excise Tax
Description
VIRGINIA SOFT DRINK EXCISE TAX REGULATIONS
Topic
Reports
Date Issued
01-01-1984
see date
These regulations for the Virginia Soft Drink Excise Tax are published by the authority granted the State Tax Commissioner under Virginia Code §58-48.6 (§58.1-203 effective January 1, 1985) and are subject to amendment, revision and supplemental regulations as required or appropriate.
Amendments, revisions and updates to these regulations will be issued as replacement pages, each replacement page having on it the date of revision.
Each regulation section is numbered to reference the section of Title 58.1 of the Code of Virginia which it interprets. The first three digits, 630, identify these regulations, for purposes of the Virginia Register of Regulations, as regulations of the Department of Taxation. The digits following the first hyphen indicate the tax type, and the digits following the second hyphen indicate the section of Title 58.1 being interpreted. For example, the section number 630-26-1700, identifies the agency (630), the soft drink excise tax (26), and the section of Title 58.1, Code of Virginia, which is interpreted (1700).
W. H. Forst
State Tax Commissioner
Virginia Department of Taxation
P. O. Box 6-L
Richmond, Virginia 23282
EFFECTIVE DATE: January 1, 1985, with retroactive effect according to §58-48.6 (recodified as §58.1-203).
EXPIRATION DATE: N/A
SUPERSEDES: All previous documents and any oral directives in conflict herewith.
REFERENCES: Code of Virginia §§ 58.1-1700 through 58.1-1704 are regulated herein. The provisions of Title 58 relative to the soft drink excise tax are found in §58-404.02.
AUTHORITY: §58-48.6, Code of Virginia, and §58.1-203 on and after January 1, 1985.
SCOPE: Applicable to all taxpayers subject to the soft drink excise tax.
SUMMARY: These are initial regulations interpreting certain provisions of the Virginia soft drink excise tax, consisting of §§630-26-1700 through 630-26-1704.
ADOPTION DATE: September 19, 1984
Regulation Section Page
630-26-1700 TITLE
630-26-1701 DEFINITION
630-26-1703 COLLECTION
630-26-1701. DEFINITION.
Generally. Wholesaler or distributor is defined as any person, firm or corporation who manufactures, purchases or otherwise obtains and sells carbonated soft drinks to retail dealers for resale or who sells direct to retail consumers or users or to institutional, commercial or industrial users or who distributes such soft drinks to chain stores, for use or consumption in this State.
1. The definition of wholesaler or distributor includes a manufacturer, located either within or without Virginia, who sells carbonated soft drinks to anyone other than a "wholesaler or distributor" as defined above. Such manufacturer is subject to the excise tax even though the activity of the manufacturer may be limited to the delivery of soft drinks to a chain store's warehouse in Virginia for ultimate resale through the chain store's various retail outlets in Virginia.
a. The manufacturer, located either within or without Virginia, who sells soft drinks to a wholesaler or distributor for resale to Virginia retailers would not be subject to the tax. The wholesaler or distributor who purchased the soft drinks from the manufacturer would be subject to the tax.
2. If a chain store business, operating within and without Virginia, distributes soft drinks to its Virginia stores from its out-of-state warehouse, it would then be the distributor subject to tax.
3. A Virginia manufacturer who sells soft drinks to Virginia wholesalers or distributors would not be subject to the tax, but a Virginia manufacturer who sells to anyone other than a wholesaler or distributor, i.e. chain stores, institutional, commercial or retail users, would bee subject to the tax.
4. A manufacturer, wholesaler or distributor located either within or without Virginia, who sells soft drinks at retail to consumers or users in Virginia would be the distributor subject to tax.
630-26-1702. TAX LEVIED.
A. Generally. In addition to all other taxes levied upon wholesalers or distributors of carbonated soft drinks, there is imposed an annual State soft drink excise tax.
1. The tax is imposed on every wholesaler or distributor of carbonated soft drinks sold for consumption or use in this State.
2. The tax is applicable to the gross receipts from all sales of carbonated soft drinks for consumption or use in this State regardless of the physical location of the business selling such soft drinks.
3. The tax is imposed upon soft drinks only once and is imposed upon the first handler of such drinks who qualifies as a wholesaler or distributor as defined in regulation 630-26-1701.
B. Rate of tax. The tax rate schedule applicable to the gross receipts from the wholesaler or distributor's sale of carbonated soft drinks is as follows:
Bracket of Gross Receipts Tax
$100,000 or less $ 50
100,001 - 250,000 100
250,001 - 500,000 250
500,001 - 1,000,000 750
1,000,001 - 3,000,000 1,500
3,000,001 - 5,000,000 3,000
5,000,001 - 10,000,000 4,500
10,000,001 and above 6,000
630-26-1703. COLLECTION.
A. Generally. The soft drink excise tax is collected annually by the Department of Taxation. A check for the amount of tax, and if applicable, penalty and interest, should be made payable to the Department of Taxation and submitted with the properly filed return.
B. Filing of return. Returns are required to be filed with the Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282, on or before the statutory due date (without extension) for filing Virginia income tax returns.
1. If taxpayer has an extension of time for filing his income tax return from the Internal Revenue Service, the filing date for the soft drink excise tax may be extended to the same as the Federal date plus thirty days. In order to receive an extension of time fob filing the return, a request for extension must be made to the Department of Taxation prior to the original due date of the return.
2. If an extension of filing time is granted, interest at the rate established pursuant to §6621 of the Internal Revenue Code of 1954, as amended, accrues from the date the return was originally due to be filed to the date of payment.
C. Penalties and Interest. Subject to the-provisions of -subsection B, paragraphs 1 and 2 above, penalties and interest are imposed for failure to file a return, for late filing, for filing a false or fraudulent return, and for failure to pay when due the full amount of tax as shown on the face of the return and are assessed in the same manner as the income tax penalties imposed under Chapter 3 of Title 58.1.
1. Penalty for failure to pay when due shall be 5% of the amount of unpaid tax and assessed in accordance with §§ 58.1-351 and 58.1-455.
2. Penalty for failure to file the return when due is $100 for corporations and 10% of the amount of tax assessable on the return for all others. The penalties shall be assessed in accordance with §§ 58.1-347 and 58.1-450.
3. Penalty for fraud is assessed in accordance with §§58.1-348, 58.1-451 and 58.1-452.
4. Interest is assessed 'on tax and applicable penalties in accordance with §58.1-15, Code of Virginia, as amended.
630-26-1704. Tax Segregated fore State Taxation.
The soft drink excise tax is segregated for State taxation only and no county, city, town or other political subdivision of this State shall impose a tax on such businesses measured by their gross receipts except for the tax authorized under Chapter 37, Title 58.1, Code of Virginia, as amended.
*This is statutory language. No further interpretation is required.
VIRGINIA SOFT DRINK EXCISE TAX REGULATIONS
VIRGINIA DEPARTMENT OF TAXATION
January 1, 1985
INTRODUCTION
These regulations for the Virginia Soft Drink Excise Tax are published by the authority granted the State Tax Commissioner under Virginia Code §58-48.6 (§58.1-203 effective January 1, 1985) and are subject to amendment, revision and supplemental regulations as required or appropriate.
Amendments, revisions and updates to these regulations will be issued as replacement pages, each replacement page having on it the date of revision.
Each regulation section is numbered to reference the section of Title 58.1 of the Code of Virginia which it interprets. The first three digits, 630, identify these regulations, for purposes of the Virginia Register of Regulations, as regulations of the Department of Taxation. The digits following the first hyphen indicate the tax type, and the digits following the second hyphen indicate the section of Title 58.1 being interpreted. For example, the section number 630-26-1700, identifies the agency (630), the soft drink excise tax (26), and the section of Title 58.1, Code of Virginia, which is interpreted (1700).
W. H. Forst
State Tax Commissioner
Virginia Department of Taxation
P. O. Box 6-L
Richmond, Virginia 23282
VIRGINIA SOFT DRINK EXCISE TAX-REGULATIONS
EFFECTIVE DATE: January 1, 1985, with retroactive effect according to §58-48.6 (recodified as §58.1-203).
EXPIRATION DATE: N/A
SUPERSEDES: All previous documents and any oral directives in conflict herewith.
REFERENCES: Code of Virginia §§ 58.1-1700 through 58.1-1704 are regulated herein. The provisions of Title 58 relative to the soft drink excise tax are found in §58-404.02.
AUTHORITY: §58-48.6, Code of Virginia, and §58.1-203 on and after January 1, 1985.
SCOPE: Applicable to all taxpayers subject to the soft drink excise tax.
SUMMARY: These are initial regulations interpreting certain provisions of the Virginia soft drink excise tax, consisting of §§630-26-1700 through 630-26-1704.
ADOPTION DATE: September 19, 1984
TABLE OF CONTENTS
Regulation Section Page
630-26-1700 TITLE
630-26-1701 DEFINITION
-
- Generally
- Generally
-
- Generally
Rate of tax
- Generally
630-26-1703 COLLECTION
-
-
-
-
-
-
-
- Generally
-
-
-
-
-
- Filing of return
Penalties and interest
-
630-26-1701. DEFINITION.
Generally. Wholesaler or distributor is defined as any person, firm or corporation who manufactures, purchases or otherwise obtains and sells carbonated soft drinks to retail dealers for resale or who sells direct to retail consumers or users or to institutional, commercial or industrial users or who distributes such soft drinks to chain stores, for use or consumption in this State.
1. The definition of wholesaler or distributor includes a manufacturer, located either within or without Virginia, who sells carbonated soft drinks to anyone other than a "wholesaler or distributor" as defined above. Such manufacturer is subject to the excise tax even though the activity of the manufacturer may be limited to the delivery of soft drinks to a chain store's warehouse in Virginia for ultimate resale through the chain store's various retail outlets in Virginia.
a. The manufacturer, located either within or without Virginia, who sells soft drinks to a wholesaler or distributor for resale to Virginia retailers would not be subject to the tax. The wholesaler or distributor who purchased the soft drinks from the manufacturer would be subject to the tax.
2. If a chain store business, operating within and without Virginia, distributes soft drinks to its Virginia stores from its out-of-state warehouse, it would then be the distributor subject to tax.
3. A Virginia manufacturer who sells soft drinks to Virginia wholesalers or distributors would not be subject to the tax, but a Virginia manufacturer who sells to anyone other than a wholesaler or distributor, i.e. chain stores, institutional, commercial or retail users, would bee subject to the tax.
4. A manufacturer, wholesaler or distributor located either within or without Virginia, who sells soft drinks at retail to consumers or users in Virginia would be the distributor subject to tax.
630-26-1702. TAX LEVIED.
A. Generally. In addition to all other taxes levied upon wholesalers or distributors of carbonated soft drinks, there is imposed an annual State soft drink excise tax.
1. The tax is imposed on every wholesaler or distributor of carbonated soft drinks sold for consumption or use in this State.
2. The tax is applicable to the gross receipts from all sales of carbonated soft drinks for consumption or use in this State regardless of the physical location of the business selling such soft drinks.
3. The tax is imposed upon soft drinks only once and is imposed upon the first handler of such drinks who qualifies as a wholesaler or distributor as defined in regulation 630-26-1701.
B. Rate of tax. The tax rate schedule applicable to the gross receipts from the wholesaler or distributor's sale of carbonated soft drinks is as follows:
Bracket of Gross Receipts Tax
$100,000 or less $ 50
100,001 - 250,000 100
250,001 - 500,000 250
500,001 - 1,000,000 750
1,000,001 - 3,000,000 1,500
3,000,001 - 5,000,000 3,000
5,000,001 - 10,000,000 4,500
10,000,001 and above 6,000
630-26-1703. COLLECTION.
A. Generally. The soft drink excise tax is collected annually by the Department of Taxation. A check for the amount of tax, and if applicable, penalty and interest, should be made payable to the Department of Taxation and submitted with the properly filed return.
B. Filing of return. Returns are required to be filed with the Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282, on or before the statutory due date (without extension) for filing Virginia income tax returns.
1. If taxpayer has an extension of time for filing his income tax return from the Internal Revenue Service, the filing date for the soft drink excise tax may be extended to the same as the Federal date plus thirty days. In order to receive an extension of time fob filing the return, a request for extension must be made to the Department of Taxation prior to the original due date of the return.
2. If an extension of filing time is granted, interest at the rate established pursuant to §6621 of the Internal Revenue Code of 1954, as amended, accrues from the date the return was originally due to be filed to the date of payment.
C. Penalties and Interest. Subject to the-provisions of -subsection B, paragraphs 1 and 2 above, penalties and interest are imposed for failure to file a return, for late filing, for filing a false or fraudulent return, and for failure to pay when due the full amount of tax as shown on the face of the return and are assessed in the same manner as the income tax penalties imposed under Chapter 3 of Title 58.1.
1. Penalty for failure to pay when due shall be 5% of the amount of unpaid tax and assessed in accordance with §§ 58.1-351 and 58.1-455.
2. Penalty for failure to file the return when due is $100 for corporations and 10% of the amount of tax assessable on the return for all others. The penalties shall be assessed in accordance with §§ 58.1-347 and 58.1-450.
3. Penalty for fraud is assessed in accordance with §§58.1-348, 58.1-451 and 58.1-452.
4. Interest is assessed 'on tax and applicable penalties in accordance with §58.1-15, Code of Virginia, as amended.
630-26-1704. Tax Segregated fore State Taxation.
The soft drink excise tax is segregated for State taxation only and no county, city, town or other political subdivision of this State shall impose a tax on such businesses measured by their gross receipts except for the tax authorized under Chapter 37, Title 58.1, Code of Virginia, as amended.
*This is statutory language. No further interpretation is required.
Rulings of the Tax Commissioner