Litter Tax
Hey, food-based businesses, did you know Virginia has a litter tax? As of the date of this article, we have clients who are receiving litter tax bills for up to three years of taxes, with penalties and interest. We thought it might be helpful to outline what a litter tax is and who needs to pay it.
First, before we go any further. Please make sure you are registered online to pay Virginia taxes. It’s the easiest way to stay up to date on what you owe and pay on time. You can register here: tax.virginia.gov
On to litter tax…
The litter tax is imposed in Virginia on businesses that produce “litter” and the tax dollars are used to prevent and reduce litter, and ramp up recycling efforts across the Commonwealth.
Who has to pay litter tax?
Every Virginia manufacturer, wholesaler, distributor and retailer of products in the following categories is subject to the tax:
food for pet or human consumption
groceries
cigarettes and tobacco products
soft drinks and carbonated waters
beer and other malt beverages
wine
newspapers and magazines
motor vehicle parts
paper products and household paper
glass containers
metal containers
plastic or fiber containers made of synthetic material
cleaning agents and toiletries
non-drug drugstore sundry products
distilled spirits
Businesses become liable for the tax the first January 1 that the location is in business. If you start after January 1, you are not responsible for the litter tax until the following year.
Tax Rates
Businesses must pay $20 per business location, and an additional $30 for each location that manufactures, sells or distributes groceries, soft drinks, or beer. For example, if you own a grocery store chain and have 10 locations in Virginia, you will owe $50 for each grocery store, or $500 total.
Litter Tax Due Date
Litter Tax is due May 1 each year for the preceding calendar year. There is no provision for an extension. Please be aware that if you don’t pay, you still owe the tax and fees, and penalties associated with a past-due payment. Go ahead and mark your calendar now and plan to pay your tax by the end of April.
If you haven’t filed yet and have been in business for a while, we encourage you to schedule a confidential appointment to talk about options before filing.