The Tobacco Indemnification and Community Revitalization Commission is a 31-member body created by the 1999 General Assembly. Its mission is the promotion of economic growth and development in tobacco-dependent communities, using proceeds of the national tobacco settlement. To date, the Commission has awarded 1,475 grants totaling more than
$834 million across the tobacco region of the Commonwealth, and has provided $288 million in indemnification payments to tobacco growers and quota holders. Click on Who are We at the left to learn more.
The Virginia Tobacco Indemnification and Community Revitalization Commission (“the Commission”) confirmed on January 10, 2012 that 2012 will mark the end of the Phase I Indemnification Program. Since 2000, the Commission has made available $309 million to Virginia’s tobacco growers and owners, thereby fulfilling its statutory obligation. On April 29, 2010, the Commission announced that it was nearing the end of its indemnification obligation and expected the 2012 payment to be the final distribution of Phase I Indemnification funds. During last Tuesday’s meeting the Commission resolved that upon the end of its 2012 payment distributions, it will cease to operate an indemnification program and that as of July 1, 2013, any unclaimed indemnification funds will be reallocated to economic development efforts.
The Commission will begin its final distribution of Phase I Indemnification payments in June 2012. Verification for payment forms and Applications for payment will be mailed by mid-April to eligible Virginia flue-cured and burley producers and quota owners. Completed and signed Verification for payment forms and Applications for payments must be returned by the May 18, 2012 deadline in order to be eligible for the June 2012 payment.
Claimants can expect a payment equal to that which was received in 2011, as the 2012 payment rates established by the Commission are the same as 2011 rates:
Flue-Cured Quota Owners 6.01 cents per pound of Basic Quota
Flue-Cured Producers 4.93 cents per pound of Basic Quota
Burley Quota Owners 7.03 cents per pound of Basic Quota
Burley Producers 6.36 cents per Payment Pound
Claimants who need additional information may contact Troutman Sanders LLP, Phase I Tobacco Indemnification Program at 1-888-629-7682 or 804-697-1869 from outside of Virginia. Information is also available on the Program’s web site at www.vatip.com.
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