FYI
--
Joyce Harman DVM, MRCVS
Harmany Equine Clinic, Ltd.
Appts only 540-229-1855
Fax: 540-364-4088
www.harmanyequine.com
Gilbert to Address New and Unfair Tax Ruling with Legislation
Immediate Release
November 7, 2008
Delegate Todd Gilbert (R-Woodstock) today announced that he will
patron legislation to reverse a new and potentially destructive ruling by
the Virginia Department of Taxation to collect sales tax on the processing
of consumer-owned food items by butchers and meat processors. As a result of
the recent ruling, hunters who drop off deer carcasses to be processed and
farmers who bring in cattle and hogs to be butchered for their own
consumption will be required to pay the 5% Virginia sales tax on the
processing of those meats. Although the Department of Taxation based their
new ruling on existing statutory law and their own administrative code, it
is a first in Virginia for the Department of Taxation to apply this
longstanding rule on the fabrication of goods to consumer-owned food.
On October 22nd, Blue Ridge Meats, a small slaughterhouse located
in Front Royal, was notified by the tax department that it would have to
begin collecting sales tax on meat that it processed for consumers, even if
the meat was brought to them by the consumers themselves. The company is
appealing the ruling and is represented by Front Royal attorney and 18th
District Delegate, Clifford L. (Clay) Athey, Jr.
Delegate Gilbert stated in a prepared statement: "I represent
countless hunters, family farmers, and other consumers who routinely take
meat to the butcher so that they can put in their freezers and help feed
their families during the year. They pay for this service. To then charge
them a sales tax on food they already own is preposterous. Not only is it
inherently unfair for the tax man to line up for his cut, this tax will have
real consequences for those who are forced to pay it. Farmers are already
struggling to pay their livestock feed costs, and the Virginia Department of
Taxation now demands that they pay a 5% sales tax for the necessity of
converting their own livestock into food for their families. In an area
where our hunting heritage is so important to so many people, hunters will
likewise be taxed for bringing in their game to be processed in a safe and
hygienic manner. My bill will exempt such food items from the hungry eyes of
the tax man."
Delegate Athey (R-Warren) added: "I represent the folks who are
fighting this unfair ruling as both their lawyer and their delegate. I was
shocked to learn of this inherently unfair ruling and we are working to
reverse it both legally and legislatively."
Delegate Beverly Sherwood (R-Frederick) added: "As Chairman of the
Militia, Police and Public Safety Committee and a member of the Agriculture,
Chesapeake and Natural Resources Committee, I work very hard to protect the
rights of our local hunters and the livelihoods of our farmers. I will do
everything in my power to ensure this bill becomes law."
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