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Posted April 15, 2009 | Copyright © The Northern Virginia Daily
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Butcher sales tax loophole closed
Beginning this summer, the tax man in Richmond will no longer get a cut of butchers’ profits when their customers bring in an animal for processing.
Legislation to exempt the service from Virginia sales taxes passed both houses of the General Assembly unanimously during the winter term and has been signed into law by the governor.
Blue Ridge Meats, off Guard Hill Road near Middletown, had challenged the state’s interpretation of the practice as “fabrication labor,” not unlike when a tailor makes an article of clothing from materials supplied by the purchaser.
The bill, sponsored by Del. Todd Gilbert, R-Woodstock, exempts “the fabrication of animal meat, grains, vegetables, or other foodstuffs” when the finished product is to be consumed by the purchaser or his family or is donated to a nonprofit organization. It will become law in Virginia on July 1.
Lois Aylestock, co-owner of Blue Ridge Meats with her husband, Doug, thanked Gilbert, Del. Clay Athey, state Sen. Ken Cuccinelli and the Virginia Farm Bureau for their support of the bill.
She said the change will be a relief for area farmers and deer hunters.
“With the economy being what it is, it has been an extra burden on those who bring in animals to help feed their families.”
— Daily Staff Report
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