Title of Regulation: 23VAC10-75. Virginia Soybean Excise Tax Regulations (repealing 23VAC10-75-20).

Statutory Authority: § 58.1-203 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: July 1, 2016.

Effective Date: July 18, 2016.

Agency Contact: Joseph E. Mayer, Lead Policy Analyst, Department of Taxation, P.O. Box 27185, Richmond, VA 23261-7185, telephone (804) 371-2299, FAX (804) 371-2355, or email joseph.mayer@tax.virginia.gov.

Basis: Section 58.1-203 of the Code of Virginia authorizes the Tax Commissioner to issue regulations relating to the interpretation and enforcement of the laws governing taxes administered by the Department of Taxation. Section 3.2-2312 of the Code of Virginia authorizes the Tax Commissioner to administer the soybean excise tax.

Purpose: As a result of a periodic review of the Virginia Soybean Excise Tax Regulations (23VAC10-75) initiated by the Department of Taxation on April 28, 2015, and completed June 6, 2015, the Department of Taxation has determined that the regulation should be repealed because it provides no guidance beyond the plain meaning of the statutes to which it applies and is not necessary to protect the public health, safety, or welfare. A regulation that is not necessary to interpret the law or to protect the public health, safety, or welfare violates the general principles set forth in Governor McAuliffe's Executive Order 17 signed June 30, 2014.

Repeal of the regulation does not reflect any change in current tax policy. Repeal of the regulation will have no impact on the administration of the soybean excise tax.

Rationale for Using Fast-Track Rulemaking Process: The repeal of the Virginia Soybean Excise Tax Regulations is expected to be noncontroversial because the regulation provides no guidance beyond the plain meaning of the statutes to which it applies. No comments were received during the periodic review of the regulation.

Substance: This action will repeal the Virginia Soybean Excise Tax Regulations. The soybean excise tax is levied on soybeans purchased in the Commonwealth. The tax is remitted quarterly and the revenues deposited into the Soybean Fund. The Soybean Board uses these funds to provide for programs of research, education, publicity, and the promotion of the sale and use of soybeans.

Because the regulation provides no guidance beyond the plain meaning of the statutes to which it applies, repeal of the regulation does not reflect any change in current tax policy. Repeal of the regulation will have no impact on the administration of the soybean excise tax.

Issues: As the regulation provides no additional guidance to statutes that are clear and unambiguous, it is unnecessary. Accordingly, its repeal poses no disadvantages to the public or the Commonwealth.

Small Business Impact Review Report of Findings:  This regulatory action serves as the report of the findings of the regulatory review pursuant to § 2.2-4007.1 of the Code of Virginia.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Department of Taxation (Department) proposes to repeal this regulation.

Result of Analysis. The repeal of this regulation will have no impact in that all sections are either obsolete or repetitive of statutes.

Estimated Economic Impact. The text in this regulation is either obsolete or repetitive of language in Code of Virginia: § 3.2-2313. Repealing the regulation will therefore have no impact.

Businesses and Entities Affected. The regulation and statutes pertain to the 37¹ soybean handlers in the Commonwealth. Code of Virginia § 3.2-2300 defines a "handler" as "any processor, dealer, shipper, exporter, or any other business entity that purchases soybeans from a producer."

Localities Particularly Affected. The proposed repeal of the regulation does not disproportionately affect particular localities.

Projected Impact on Employment. The proposed repeal of the regulation does not affect employment.

Effects on the Use and Value of Private Property. The proposed repeal of the regulation does not affect the use and value of private property.

Real Estate Development Costs. The proposed repeal of the regulation does not affect real estate development costs.

Small Businesses:

Definition. Pursuant to § 2.2-4007.04 of the Code of Virginia, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

Costs and Other Effects. The proposed repeal of the regulation does not affect small businesses.

Alternative Method that Minimizes Adverse Impact. The proposed repeal of the regulation does not affect small businesses.

Adverse Impacts:

Businesses. The proposed repeal of the regulation will not adversely affect businesses.

Localities. The proposed repeal of the regulation will not adversely affect localities.

Other Entities. The proposed repeal of the regulation will not adversely affect other entities.

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¹ Data source: Department of Taxation

Agency's Response to Economic Impact Analysis: The Department of Taxation agrees with the Department of Planning and Budget's economic impact analysis.

Summary:

The Department of Taxation determined that the regulation provides no guidance beyond the plain meaning of the statutes to which it applies and is not necessary to protect the public health, safety, or welfare. Therefore, the regulation is repealed. The repeal of the regulation does not reflect a change in current tax policy and has no impact on the administration of the soybean excise tax.