Virginia Tax Department Issues Tobacco Tax Bulletin on Heated Tobacco Products, Economic Nexus for Distributors

The Virginia Department of Taxation Dec. 1 issued a bulletin on the taxability of heated tobacco products, and economic nexus for tobacco products distributors. The bulletin includes that: 1) effective Jan. 1, 2021, tobacco products tax of 2.25 cents per stick applies to taxable sales of heated tobacco products; 2) heated tobacco products won’t be subject to stamping requirements imposed on cigarettes under the Virginia Cigarette Tax Act; 3) effective Jan. 1, 2021, out-of-state tobacco products distributors with $100,000 in gross revenue from sales of tobacco products, or at last 200 separate tobacco products sales transactions, in the previous or ...