State litter tax rate, penalty increase go into effect May 1

Rate increases and a large additional penalty for late payments for the state’s litter tax will go into effect for Virginian business owners on May 1.

The changes, a result of legislation from the 2020 General Assembly session, are as follows:

– The litter tax payment will increase up to $20 per business establishment.
– The additional litter tax rate rises to $30 per business establishment for manufacturers, wholesalers, distributors, and/or retailers of groceries, soft drinks, carbonated water, beer and other malt beverages.
– Business establishments that opened on or before Jan. 1, 2020, will be subject to additional penalties if they pay after the due date of May 3, 2020. The fine includes a late payment penalty equal to 100% of the tax due, plus the accrued interest and an additional late payment penalty of $100.

Electronic payment options are available on the Virginia Tax website.

“We really want you to make your Litter Tax payment on time to avoid penalties and interest,” said Arleen Green, Virginia Tax’s Assistant Commissioner for the Office of Compliance, in a statement. “One more thing to know, unless you apply and qualify for a hardship waiver, you must make that payment electronically.”

If you have questions about the Litter Tax, making electronic payments or registering your business with Virginia Tax, contact the Virginia Tax business customer service hotline at (804) 367-8037.