Bulletin Number
VTB 06-5
Tax Type
Cotton Tax
Description
Assessment increase of $0.10 to $0.95 per bale of cotton effective on September 1, 2006
Topic
Basis of Tax
Rate of Tax
Date Issued
08-17-2006
TAX BULLETIN 06-5
Virginia Department of Taxation
Virginia Department of Taxation
August 17, 2006
IMPORTANT INFORMATION REGARDING
2006 COTTON EXCISE TAX
2006 COTTON EXCISE TAX
COTTON TAX INCREASED TO $0.95 PER BALE, EFFECTIVE
SEPTEMBER 1, 2006
SEPTEMBER 1, 2006
On June 12, 2006, cotton producers voted in favor of authorizing the cotton Board to increase the assessment on cotton.
On August 3, 2006, the Cotton board approved an assessment increase of $0.10 to $0.95 per bale of cotton effective on September 1, 2006. Accordingly, all cotton handlers are required to collect the cotton assessment at the new rate on all cotton ginned in the Commonwealth on and after September 1, 2006.
The funds made available by the passage of the cotton referendum will be used to support research, education, and promotion of the growth and use of cotton.
The referendum was conducted in accordance with the provisions of the statutes as defined in Title 3.1 Chapter 44 § 3.1-1084 et seq. of the Code of Virginia. All Virginia producers, regardless of age, who produced at least one bale of cotton in the Commonwealth in the fiscal year preceding the referendum and who returned the certification form to the Virginia Department of Agriculture and Consumer Services were eligible to vote. The results were counted by a panel of judges and forwarded to the Governor for his review and signature. The Governor certified the results of the referendum on June 23, 2006.
Effective September 1, 2006, every cotton producer is required to collect the cotton assessment at the new rate of $0.95 per bale. Revised forms reflecting the new rate will be distributed. If you have any questions please contact the Department of Taxation at (804) 786-2450.
Tax Bulletins