Chap. 165.—An ACT to amend and re-enact Section 11 of chapter 3 of the acts
of the General Assembly at its Extra Session 1933, approved August 29,
1933, the said section relating to powers and duties of the State Tax Com-
missioner pertaining to the use of stamps, crowns and caps; prescribing the
method and manner of evidencing the payment and collection of such tax by
manufacturers, wholesalers and retailers of beverages in Virginia, and re-
quiring such persons to keep records and make reports; regulating the refund
of such taxes; and imposing penalties for violations of this section. [H B 301]

Approved March 12, 1936

1. Be it enacted by the General Assembly of Virginia, That sec-
tion eleven of chapter three of the Acts of the General Assembly at
its extra Session nineteen hundred and thirty-three, approved August
twenty-ninth, nineteen hundred and thirty-three, be amended and re-
enacted so as to read as follows:

Section 11. (a) The payment of the taxes imposed by the pre-
ceding section shall be evidenced, as to containers other than bottles
as defined by this act, by the affixing of stamps to the original con-
tainers in which beverages are placed, received, stored, shipped or
handled, and, as to containers consisting of bottles, as defined by
this act, by the affixing of crowns or lids to such containers in which
beverages are placed, received, stored, shipped or handled. Stamps
shall be affixed in such manner that their removal will require con-
tained applications of steam or water. The term “bottle” shall mean
any vessel intended to contain liquids and having a capacity of not
more than forty-three ounces.

(b) Except as may be otherwise provided herein, each manufac-
turer or bottler of beverages in this State shall, within twenty-four
(24) hours after the beverages are placed in an original container or
bottles, and prior to delivery of any container of beverages to any
wholesaler, jobber, retailer, distributor, or any other person whatsoever
in this State, affix the proper stamp, crown, or lid to each container
and wherever a stamp is used, cancel the stamp so affixed by writing
or stamping across the face thereof the name of such manufacturer
or bottler and the date of such cancellation.

(c) Except as may be otherwise provided herein, and unless such
stamps, crowns or lids have been previously affixed, such stamps,
crowns or lids shall be affixed as herein provided by each wholesaler
in this State within twenty-four (24) hours after such beverages
come into the posession of such wholesaler and prior to the delivery
of any container thereof to any retailer or other person in this State,
and stamps wherever used, shall be cancelled by writing or stamping
across the face thereof the name of such wholesaler and the date of
such cancellation,

(d) Each retailer in this State immediately upon the receipt
of any beverages at his place of business, and prior to disposing of
the same in any way, shall affix such stamps, crowns or lids to each
container thereof unless such stamps, crowns or lids shall have been
previously affixed thereto, and wherever stamps are used, he shall
cancel the same by writing or stamping across the face thereof the
name of such retailer and the date of such cancellation.

(e) The State Tax Commissioner shall prescribe, prepare, furnish
and sell the stamps provided for in this section, in such denomina-
tions and quantities as may be necessary, for the payment of the
tax imposed by this act. The crowns and lids provided for in this
section shall be prescribed by the State Tax Commissioner, and under
rules and regulations prescribed by the State Tax Commissioner
they shall be purchased by the manufacturer or other person, after
the payment of the tax imposed by this act, only from such persons,
firms or corporations as may be designated as manufacturers of such
crowns and lids by the State Tax Commissioner. The State Tax
Commissioner is authorized to enter into contracts on behalf of the
State with one or more manufacturers for the manufacture, sale and
distribution of such crowns or lids, and shall require of such persons,
firms and corporations so manufacturing, selling and distributing
such crowns or lids a bond or bonds, with a company authorized
to do business in this State as surety, payable to the Commonwealth
of Virginia, in such penalty and upon such conditions as in the opinion
of the State Tax Commissioner will adequately protect the State. The
crowns and lids shall be manufactured, sold and distributed at the
cost of the taxpayer. The cost of furnishing the stamps provided
for herein shall be paid for out of the revenue which shall be received
from the taxes imposed by section ten of this act.

(f) At the time of delivering beverages to any person, each manu-
facturer and wholesaler in this State shall make a true duplicate in-
voice showing the date of delivery, the amount and value of each
shipment of beverages delivered, and the name of the purchaser to
whom the delivery is made, and shall retain the same for a period
of two (2) years, subject to the use and inspection of the Alcoholic
Beverage Control Board, the State Tax Commissioner, and their
agents or the agents of either of them.

(g) Persons operating boats, dining cars, buffet cars and club
cars upon or in which beverages are sold shall not be required to
evidence the payment of the tax herein provided for by affixing
stamps, crowns or lids, as provided for in this section, but instead
shall keep such records of the sales of such beverages in this Com-
monwealth as the State Tax Commissioner shall prescribe and shall
submit monthly reports of such sales to the State Tax Commissioner
upon a form prescribed therefor by said State Tax Commissioner
and shall pay the tax levied under section ten of this act at the time
such reports are filed.

(h) It is the intent and purpose of this section to require all
manufacturers and other persons, except as herein provided, to affix
the stamps, crowns or lids provided for in this section to all original
containers in which beverages are normally placed, prepared for
market, received, sold or handled before such beverages are sold,
offered for sale, or held for sale within this State.

(1) Any manufacturer or other person, except as herein provided,
who shall sell beverages to wholesalers, retailers or consumers, with-
out affixing to the containers the stamps, crowns or lids required by
this act, and any person, except as herein provided, who shall pur-
chase, receive, transport, store or sell any beverages in containers to
which the stamps, crowns or lids required by this act are not affixed,
shall be deemed guilty of a misdemeanor, and upon conviction thereof,
shall be punished by being fined not less than one hundred dollars
($100.00) nor more than five hundred dollars ($500.00), or by being
confined in jail for a term not exceeding six (6) months, or by both
such fine and confinement in jail in the discretion of the jury, or of the
justice, or of the court trying the case without a jury. In addition such
person shall be liable for the taxes due under this act with interest at the
rate of twelve per centum per annum from the date such taxes were
due and payable. The State Tax Commissioner shall have authority
to assess said taxes and interest and to cause the same to be col-
lected in the same manner provided for the collection of taxes generally.

(j) Manufacturers or other venders of beverages from without
this State shall affix the stamps, crowns or lids to original containers
of beverages to be sold, offered for sale, held for sale, delivered, or
transported for delivery in this State.

(k) The State Tax Commissioner shall promulgate rules and
regulations to relieve manufacturers and bottlers of beverages from
the liability to affix stamps, crowns or lids on such beverages as
are intended to be shipped and is thereafter shipped out of this State
by such manufacturers and bottlers for resale out of this State.

(1) Any person who falsely or fradulently makes, forges, alters
or counterfeits any stamps, crowns or lids prescribed by the State
Tax Commissioner under the provisions of this section, or causes
or procures to be falsely or fraudulently made, forged, altered or
counterfeited any such stamps, crowns or lids, or knowingly or wil-
fully utters, passes or tenders as true any such false, forged, altered
or counterfeited stamps, crowns or lids, or uses more than once any
stamp, crown or lid provided for and required by this act, for the
purpose of evading the tax imposed under this act, or for the pur-
pose of aiding or abetting others to evade the tax imposed under this
act, shall be guilty of a felony, and, upon conviction thereof, shall
be punished by confinement in the penitentiary for not less than two
(2) years nor more than five (5) years.

(m) Whoever, being a retailer or wholesaler in this State, has in
his possession a container or containers of beverages not bearing the
stamps, crowns or lids required to be affixed to each such container ;
or fails to produce, upon demand by the State Tax Commissioner, or
the Alcoholic Beverage Control Board, invoices of all beverages
purchased or received by him within two (2) years prior to such
demand, unless upon satisfactory proof it is shown that such non-
production is due to providential or other causes beyond his control,
shall be guilty of a misdemeanor and upon conviction thereof be fined
not less than twenty-five dollars ($25.00), nor more than one hundred
dollars ($100.00).

(n) Any person who shall fail, neglect, or refuse to comply with
or shall violate any provision of this section, for which violation
no specific penalty is provided, or any of the rules and regulations
prescribed, adopted and promulgated by the State Tax Commissioner
under the provisions of this section, or who shall refuse to permit
the State Tax Commissioner, or the Alcoholic Beverage Control
Board, or their agents or the agents of either of them, to examine
his books, papers, invoices, and other records, his stock of beverages
in and upon any premises where the same are manufactured, bottled,
stored, sold, offered for sale, or held for sale, shall be guilty of a
misdemeanor, and, upon conviction thereof, shall be fined not less
than one hundred dollars ($100.00) nor more than five hundred dol-
lars ($500.00), or confined in jail not more than six (6) months, or
both, in the discretion of the jury, or of the justice, or of the court
trying the case without a jury.

(o) The State Tax Commissioner is hereby charged with the
enforcement of the provisions of this section, and is hereby auth-
orized and empowered to prescribe, adopt, promulgate, and enforce
rules and regulations relating to any matter or thing pertaining to
the administration and enforcement of the provisions of this section
and the collection of taxes, penalties, and interest imposed by this
act.

(p) The State Tax Commissioner is hereby authorized to pre-
scribe, adopt, promulgate and enforce rules and regulations relating
to the transportation of beverages through this State and from points
outside of this State to points within this State, and to prescribe,
adopt, promulgate, and enforce rules and regulations reciprocal to those
of, or laws of, any other state or territory affecting the transportation
of beverages manufactured in this State.

(q) The State Tax Commissioner may waive so much of sub-
section (d) of section ten of this act as he may regard unnecessary
for the efficient administration of this act.

(r) In the event that the method prescribed in this section for
the payment and collection of the taxes imposed by section ten of
this act shall become inoperative at any time then such taxes shall
be paid and collected as provided in section ten, and in addition the
State Tax Commissioner shall have authority and it shall be his duty
to assess and collect such back taxes as may be due and payable but
unpaid under the provisions of section ten.

(s) Whenever it is proven to the satisfaction of the State Tax
Commissioner that any person has purchased and used stamps, crowns
or lids upon beverages that have been sold by him in such manner
as are exempt from the excise tax levied under section ten, the State
Tax Commissioner shall issue a certificate to said person whereby
said person or his assignee is entitled to obtain without payment of
the tax otherwise represented by said crowns and lids, from the per-
son, firm, or corporation, designated therein as one of the manufac-
turers of crowns or lids, an amount of crowns or lids having the
same aggregate tax value as the amount of tax represented by said
crowns or lids so used upon the exempt beverages, and the State Tax
Commissioner shall issue and deliver without further cost, to said
person or his assignee an amount of stamps having the same aggre-
gate tax value as the mount of stamps so used by him upon such
exempt beverages.

(t) This section as hereby amended shall be in effect on and
after August first, nineteen hundred and thirty-six, provided, how-
ever, that the State Tax Commissioner shall have authority at any
time after June thirtieth, nineteen hundred and thirty-six, to make
provision for the furnishing of stamps, crowns and lids required
herein.