IPCPR Legislative | Virginia

Virginia

virginia

Virginia State Contact Information

 

Virginia Department of Taxation

Tobacco Unit

(804) 371-0730

Taxation in Virginia

 

Virginia imposes a tax on tobacco products purchased for sale in the Commonwealth by any person engaged in the business of a tobacco product distributor. The “tobacco products tax” is imposed on tobacco products a distributor brings into the Commonwealth for sale in the Commonwealth; makes, manufactures, or fabricates in the Commonwealth for sale in the Commonwealth; or ships or transports to retailer dealers in the Commonwealth to be sold by those retail dealers in the Commonwealth. It is imposed on the distributor at the time the distributor sells the tobacco products to a retail dealer located in Virginia. Retail dealers in possession of untaxed tobacco products are also liable for the tax.

 

In addition, each tobacco manufacturer that ships tobacco products to any person located in the Commonwealth must file an annual report with the Department of Taxation.

 

Va. Code § 58.1-1021 et seq.

Virginia Department of Taxation

 

http://www.tax.virginia.gov/site.cfm?alias=TobaccoProductsTax

 

Staff reported that Virginia localities do not impose additional taxes on tobacco products other than cigarettes.

The tobacco products tax on moist snuff is $0.18 per ounce based on the net weight of the package.
Loose leaf tobacco products are taxed at different rates based on the weight of each unit: $0.21 for each unit less than 4 ounces; $0.40 for each unit that is at least 4 ounces but not more than 8 ounces $0.70 for each unit more than 8 ounces but not more than 24 ounces. Units that exceed 24 ounces are taxed at $0.21 per unit plus $0.21 for each 4 ounce increment that exceeds 16 ounces. All other tobacco products, such as cigars, pipe tobacco, dry snuff, plug, twist and roll-your-own tobaccos are taxed at 10% of the manufacturer’s sales price.

 

Va. Code § 58.1-1021.02

 

Virginia Department of Taxation:

http://www.tax.virginia.gov/site.cfm?alias=TobaccoProductsTax

Distributors registered for the tobacco products tax are also required to file a monthly Virginia Tobacco Products Tax Return (Form TT-8) on or before the 20th day of each month, along with payment for taxes due. Form TT-8 must be filed every month, even if no tax is due. The return for each period becomes delinquent on the 21st day of the succeeding month if not paid.

TT-22: Tobacco Products Tax Guidelines and Rules

http://www.tax.virginia.gov/Documents/OTP%202010%20Guidelinesfinal.pdf

 

Form TT-1: Application for Cigarette Stamping Permit and Tobacco Products Tax Distributor’s License

http://www.tax.virginia.gov/taxforms/Business/Cigarette%20and%20Tobacco%20Products/TT-1.pdf

 

Schedule A: Personal Data Form

http://www.tax.virginia.gov/taxforms/Business/Cigarette%20and%20Tobacco%20Products/TT-1%20Schedule%20A.pdf

 

TT-8: Virginia Tobacco Products Tax Return and Instructions

http://www.tax.virginia.gov/taxforms/Business/Cigarette%20and%20Tobacco%20Products/TT-8%20New.pdf

 

Form AG-1 or AG-2

Other Tobacco Products distributors selling Roll-Your-Own Tobacco are also required to file a monthly report with the Office of the Attorney General.

Definitions in Virginia

 

Virginia code defines “smoke” or “smoking” as the carrying or holding of any lighted pipe, cigar, or cigarette of any kind, or any other lighted smoking equipment, or the lighting, inhaling, or exhaling of smoke from a pipe, cigar, or cigarette of any kind.

 

Va. Code § 15.2-2820

 

“Loose leaf tobacco” is defined to mean any leaf tobacco that is not intended to be smoked, but it does not include moist snuff. Loose leaf tobacco weight unit categories are as follows: 1. “Loose leaf tobacco half pound-unit” means a consumer sized unit, pouch, or package containing at least 4 ounces but not more than 8 ounces of loose leaf tobacco, by net weight, produced by the manufacturer to be sold to consumers as a single unit and not produced to be divided or sold separately and containing one individual package. 2. “Loose leaf tobacco pound-unit” means a consumer sized unit, pouch, or package containing more than 8 ounces of loose leaf tobacco, by net weight, produced by the manufacturer to be sold to consumers as a single unit and not produced to be divided or sold separately and containing one individual package. 3. “Loose leaf tobacco single-unit” means a consumer sized unit, pouch, or package containing less than 4 ounces of loose leaf tobacco, by net weight, produced by the manufacturer to be sold to consumers as a single unit and not produced to be divided or sold separately and containing one individual package.

 

Va. Code § 58.1-1021.01

 

“Tobacco product” or “tobacco products” is defined to mean (i) “cigar;” (ii) “smokeless tobacco;” or (iii) “pipe tobacco,” as these terms are defined in the Internal Revenue Code. “Tobacco products” also include loose leaf tobacco.

 

Va. Code § 58.1-1021.01

 

“Cigar” means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2)).

 

26 U.S.C. § 5702(a)

 

“Smokeless tobacco” is defined as any snuff or chewing tobacco.

 

26 U.S.C. § 5702(m)

 

“Snuff” is defined as any finely cut, ground, or powdered tobacco that is not intended to be smoked.

 

26 U.S.C. § 5702(m)

 

“Chewing tobacco” is defined as any leaf tobacco that is not intended to be smoked.

 

26 U.S.C. § 5702(m)

 

The term “pipe tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.

 

26 U.S.C. § 5702(n)

 

“Roll-your-own tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes

 

26 U.S.C. § 5702(n)

 

“Moist snuff” is as any finely cut, ground, or powdered tobacco that is not intended to be smoked but does not include any tobacco intended to be placed in the nasal cavity. Moist snuff includes items such as snus and dissolvable tobacco products.

 

26 U.S.C. § 5702(n)

 

“Loose leaf tobacco” means any leaf tobacco that is not intended to be smoked, but shall not include moist snuff

 

26 U.S.C. § 5702(n)

 

“Distributor” means: (1) any person engaged in the business of selling tobacco products in Virginia who brings, or causes to be brought, into Virginia from outside Virginia any tobacco products for sale; (2) any person who makes, manufactures, fabricates, or stores tobacco products in Virginia for sale in Virginia; (3) any person engaged in the business of selling tobacco products outside Virginia who ships or transports tobacco products to any person in the business of selling tobacco products in Virginia; or (4) any retail dealer in possession of untaxed tobacco products in Virginia.

 

Va. Code § 58.1-1021.01

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