Important Information Regarding Virginia's Litter Tax: Increased Litter Tax Rate and Additional Penalty
Virginia Tax is notifying taxpayers of changes to the Virginia Litter Tax effective for returns due May 1, 2021.
The Virginia Litter Tax is imposed annually on each establishment from which business is conducted by certain manufacturers, wholesalers, distributors and retailers.
Previously, such tax applied at an annual rate of $10 per establishment. Effective for Litter Tax returns due May 1, 2021, this annual rate increases to $20 per establishment.
An additional litter tax on each establishment is imposed on manufacturers, wholesalers, distributors, and retailers of groceries, soft drinks, carbonated waters, beer and other malt beverages. Under prior law, such tax applied at an annual rate of $15 per establishment. Effective for Litter Tax returns due May 1, 2021, this annual rate for the additional tax increases to $30 per establishment.
Under existing law, any taxpayer who fails to pay the Litter Tax by the May 1 deadline is subject to a penalty equal 100% of the tax due. In addition, interest accrues at the rate established pursuant to Va. Code § 58.1-1812. Effective for Litter Tax payments due May 1, 2021, an additional penalty of $100 will apply to any late payments. This new penalty applies in addition to the existing 100% penalty and any interest that may accrue.
More information can be found in Tax Bulletin 21-1 and in the Laws, Rules, and Decisions section of our website.
If you have additional questions, go to www.tax.virginia.gov
or contact us at 804.367.8037 for business tax questions.