Virginia Tax Commissioner Finds Tobacco Leaf Wraps Not Subject to Tobacco Products Tax

The Virginia Tax Commissioner Feb. 27 ruled that tobacco leaf wraps are not subject to the state’s tobacco products tax. A wholesaler had requested guidance on the taxability of whole tobacco leaves used to wrap other tobacco products for smoking. The Commissioner determined that the leaf wraps do not meet the statutory definitions of cigars, smokeless tobacco, pipe tobacco or loose-leaf tobacco. Therefore, they do not qualify as “tobacco products” under Virginia law and are not subject to the tobacco products tax. However, the Commissioner advised that such products may be considered “roll-your-own tobacco” subject to the Virginia cigarette excise ...