Tax Type
Intangible Personal Property Tax
Description
Tobacco stored in a Virginia public warehouse
Topic
Property Subject to Tax
Date Issued
03-19-1984
March 19, 1984
Dear ***************
I am writing in response to your recent inquiry regarding the application of the State intangible personal property tax upon certain tobacco stored in a Virginia public warehouse.
It is my understanding that a North Carolina processor who stems and redrys leaf tobacco, plans to ship unmanufactured tobacco for storage in 8 public warehouse in Virginia. The North Carolina processor retains title to the tobacco while it is in the Virginia public warehouse and no processing will occur on such tobacco at the storage sight. Following the storage in the public warehouse, the tobacco will be exported or shipped out-of-state.
Statutory changes concerning intangible personal property tax and effective in 1983, limit the state tax to inventory only. The North Carolina processor's inventory stored in a public warehouse in Virginia is defined as intangible personal property, exempt from local taxation, but currently subject to state intangible personal property tax.
However, proposed statutory changes which eliminate the tax on intangible personal property and exempt such property from all taxation, have been passed by the Virginia General Assembly and are before the Governor awaiting his signature. If signed, the elimination of the intangible personal property tax will be effective in January 1985.
As stated above, the property in question is subject to the intangible personal property tax. To hold otherwise would conflict with current Virginia law. However, the tax levied upon such property will be eliminated if the law is amended as proposed.
If you have further questions on this matter, please feel free to contact me again.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner