Tax Type
Litter Tax
Description
Application of litter tax to printers
Topic
Taxability of Persons and Transactions
Date Issued
06-29-1988
June 29, 1988
Re: Ruling Request: Litter Tax
Printers
Dear**********************
This is in reply to your letter of January 5, 1988 in which you request a ruling regarding the applicability of the Virginia Litter Tax to printers.
The Virginia Litter Tax is an annual tax imposed on every "person" in this State engaged in business as a manufacturer, wholesaler, distributor or retailer of certain enumerated products. Among the products enumerated under Virginia Code §58.1-1708 are:
Newspapers and magazines
and
Paper products and household paper
and
Paper products and household paper
As you can see, rather than applying to all manufacturers, wholesalers, distributors or retailers of any type of printed material, the litter tax only applies to printers of certain types of products. Clearly, those printers which print newspapers and magazines are subject to the tax. By regulation, the department has determined that "newspapers and magazines" means all daily and periodical publications, excluding publications issued generally for the person's employees or membership only.
However, the mere imprinting of an image onto paper does not make a printer a manufacturer, wholesaler, distributor or retailer of paper products for purposes of the litter tax. In order for the tax to apply, the printer must actually be producing or selling "paper products or household paper." For example, a printer whose process includes die cutting and/or gluing the printed paper into a paper product, such as a carton or a package, is subject to the tax.
I trust that this ruling will clarify the application of the Virginia Litter Tax to printers and assist your organization's members in understanding their Litter Tax obligations.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner