Tax Type
Egg Excise Tax
Description
Filing requirement changes for Egg Excise Tax
Topic
Reports
Returns and Payments
Date Issued
11-05-1996
November 5, 1996
Re: Ruling Request: Egg Excise Tax
Dear *******
This will reply to your letter of September 23, 1996, requesting permission for certain egg handlers to file Egg Excise Tax returns on a basis other than monthly. Because egg handlers are incurring excessive cost in preparing monthly egg tax returns when the amount of the tax is less than $100, you are requesting that they be allowed to file on a quarterly basis when the monthly liability is less than $100.
RULING
Code of Virginia § 3.1-796.11:4 provides that an egg tax return and the egg tax shall be remitted to the department on a monthly basis. Effective April 5, 1996, however, Code of Virginia § 58.1-112 was enacted to provide that:
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- In the case of any return or payment for a tax administered by the Department that is required to be filed or paid more often than annually, the Tax Commissioner shall have the authority to set thresholds or other conditions in which such returns or payments for all or any class of taxpayers may be filed or paid less frequently, but at least annually.
The Tax Commissioner, therefore, is authorized to set thresholds and conditions filing the egg tax returns on a basis less frequently than monthly, but at least annually. Effective December 1, 1996, every handler whose average monthly egg tax liability is less than $100 may make a return and pay over the required amount to the department on or before the twentieth day of the month following the close of each quarter. A copy of the completed form shall simultaneously be filed with the Virginia Egg Board.
A handler, however, will not be placed in the quarterly filing status until the handler has been in business for at least one year and the average monthly egg tax payments are less than $100. Once these conditions are met, an egg handler may request the change in filing frequency status from monthly to quarterly by submitting a Combined Registration Application Form (Form R-1) to the department.
I trust that this treatment will prove satisfactory to egg handlers. If further assistance is needed, please contact *******at********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11767N
Rulings of the Tax Commissioner