Litter Tax due May 1
1. Who is required to pay the Virginia Litter Tax?
Manufacturers, wholesalers, distributors or retailers of these products are required to pay the Litter Tax to Virginia Tax:
- Food for human or pet consumption
- Cigarettes and tobacco products
- Soft drinks and carbonated waters
- Distilled spirits, wine, beer and other malt beverages
- Newspapers and magazines
- Paper products and household paper
- Glass and metal containers
- Plastic or fiber containers made of synthetic material
- Cleaning agents and toiletries
- Non-drug drugstore sundries
- Motor vehicle parts
2. When do businesses become liable for the tax?
A business becomes liable on the first Jan. 1 that it conducts business. If you start your business after Jan. 1, you won’t be liable for the tax until the following year.
For example, if a company opened on Jan. 1, 2017 and is subject to the Litter Tax, the business is liable for the tax for the calendar year 2017. The company must file a 2017 Litter Tax return by May 1, 2018. However, if a company opened on Feb. 1, 2017 and is subject to the Litter Tax, the business is not liable for the tax until its first full calendar year of business, which would be 2017. The company’s first Litter Tax return would be required for 2017 and would be due by May 1, 2019.
Businesses that are subject to the tax must pay $10 per location. Businesses that manufacture, sell or distribute groceries, soft drinks, carbonated waters, beer and other malt beverages must pay an additional $15 per business location. For example, an auto parts business would pay $10 per location, while a grocery chain would pay $25 per location.
3. When are the return and payment due?
Before paying the Litter Tax, businesses should be sure they have registered with Virginia Tax and that they are liable for the tax. To register or check tax liability status, go to VATAX Online Services for Businesses and follow prompts to the “Identify Tax Liabilities” option.
The deadline to file is May 1. Businesses can file and pay electronically using Virginia Litter Tax Return (Form 200). Instructions are provided with the form.
4. What happens if a return or payment is submitted after the due date?
If the return or payment is late, a penalty equal to 100% of the tax due will be assessed. Interest accrues on late payments at the federal underpayment rate established by the IRS plus 2%. The rate is subject to change at the beginning of each calendar quarter.
5. How are Litter Tax funds used?
Revenue from the Litter Tax goes to localities to support litter control and recycling.
For more information visit Litter Tax.