Chap. 145.—An ACT to amend and re-enact Sections 6, 10 and 11 of an act en-
titled ‘‘An act to legalize, regulate and control the manufacture, bottling, sale
and disposition of beer, lager beer, ale, porter, wine, similar fermented malt
or vinous liquor, and fruit juice, containing one-half of one per centum or more
of alcohol by volume, and not more than 3.2 per centum of alcohol by weight;
to provide for licensing and taxing manufacturers, bottlers, wholesalers and
retailers of such beverages by the State and the counties, cities and towns
thereof; to impose an excise tax upon all such beverages; to appropriate a
portion of the revenue derived hereunder for the collection of the taxes herein
imposed and for the administration of the act; to provide for the dismissal of
pending prosecutions for alleged violations of laws heretofore in force declaring
illegal the beverages legalized by this act where such prosecutions are founded
upon the then illegality of such beverages; to impose penalties for violations
of the act; and to repeal all acts and parts of acts in conflict herewith’’, ap-
proved August 29, 1933, as heretofore amended, in relation to license and
excise taxes. {H B 145}

Approved March 6, 1940

1. Be it enacted by the General Assembly of Virginia, That
sections six, ten and eleven of an act entitled “An act to legalize,
regulate and control the manufacture, bottling, sale and disposition
of beer, lager beer, ale, porter, wine, similar fermented malt or vinous
liquor, and fruit juice, containing one-half of one per centum or more
of alcohol by volume, and not more than three and two-tenths per
centum of alcohol by weight; to provide for licensing and taxing
manufacturers, bottlers, wholesalers and retailers of such beverages
by the State and the counties, cities and towns thereof ; to impose
an excise tax upon all such beverages; to appropriate a portion of
the revenue derived hereunder for the collection of the taxes herein
imposed and for the administration of the act; to provide for the
dismissal of pending prosecutions for alleged violations of laws here-
tofore in force declaring illegal the beverages legalized by this act
where such prosecutions are founded upon the then illegality of such
beverages; to impose penalties for violations of the act; and to repeal
all acts and parts of acts in conflict herewith,” approved August
twenty-ninth, nineteen hundred and thirty-three, as heretofore
amended, be amended and re-enacted so as to read as follows:

Section 6. (a) The taxes on State licenses issued pursuant to the
provisions of this act shall be as follows:

For each manufacturer’s license, one hundred dollars per annum;
for each bottler’s license, fifty dollars per annum; for each whole-
saler’s license, fifty dollars per annum; and for each retailer’s license,
ten dollars per annum.

(b) For every distributing house or place in this State, operated
by any person and used in whole or in part for distributing beverages
among his retail stores in this State, a separate State license is hereby
required, and the tax on every such license shall be fifty dollars per
annum.

(c) The tax on each such license shall be subject to proration to
the following extent; if the license is issued in the second quarter of
any year the tax shall be decreased by one-fourth; if issued in the
third quarter of any year the tax shall be decreased by one-half: and
if in the fourth quarter of any year the tax shall be decreased by
three-fourths.

(d) Taxes on retailers’ licenses issued for the sale of beverages
on railway cars, vessels and aircraft shall be as provided in section
fourteen.

(e) All such licenses shall expire on the thirtieth day of June
next following the date of issuance.

(f) Nothing in this act contained shall be construed as exempting
any licensee from any State merchants’ license or State restaurant
license or any other State tax whatsoever; and every licensee, in
addition to the taxes imposed by this act, shall be liable to State
merchants’ license taxation and State restaurant license taxation and
other State taxation the same as if the beverages were non-alcoholic;
provided, however, that in ascertaining the liability of a beverage
wholesaler to merchants’ license taxation, and in computing the
wholesale merchants’ license tax on a beverage wholesaler, the first
ten thousand dollars of beverage purchases shall be disregarded if
such beverage wholesaler pays a separate wholesale beverage license
tax under this act and is not within the provisions of section twenty-
six-a of the Alcoholic Beverage Control Act.

(g) All license taxes collected by the board under the provisions
of this act shall be paid into the State treasury and treated in the
same manner as license taxes collected by the board under the pro-
visions of the Virginia Alcoholic Beverage Control Act.

(h) This section, as hereby amended, shall be in force on and
after the first day of January, nineteen hundred and forty-one.

Section 10. (a) There is hereby levied on all beverages manu-
factured in Virginia an excise tax at the rate of two dollars and
seventy-five cents per barrel of thirty-one gallons, and a tax at the
same rate on such beverages in containers of more or less than thirty-
one gallons, but on such beverages in bottles of not more than twelve
ounces each the tax shall be one cent per bottle; provided, that on
such beverages in bottles of not more than twelve ounces each in-
tended for sale or expected to be sold at retail at more than ten cents
per bottle, the tax shall be one and one-half cents per bottle, and on
such beverages intended for sale or expected to be sold at retail at
more than ten cents per bottle of twelve ounces or less, if contained
in bottles of more than twelve ounces each, the tax shall be at the
rate of one and one-quarter mills per ounce per bottle. Such tax
shall be paid by the person who manufactures the said beverages.

(b) There is hereby levied on all beverages bottled in Virginia
and on all beverages sold in Virginia, an excise tax at the rate of two
dollars and seventy-five cents per barrel of thirty-one gallons, and a
tax at the same rate on such beverages in containers of more or less
than thirty-one gallons, but on such beverages in bottles of not more
than twelve ounces each the tax shall be one cent per bottle; pro-
vided, that on such beverages in bottles of not more than twelve
ounces each intended for sale or expected to be sold at retail at more
than ten cents per bottle, the tax shall be one and one-half cents
per bottle, and on such beverages intended for sale or expected to
be sold at retail at more than ten cents per bottle of twelve ounces
or less, if contained in bottles of more than twelve ounces each,
the tax shall be at the rate of one and one-quarter mills per ounce
per bottle. The tax herein levied shall be paid by the respective
bottlers and wholesalers of the said beverages, if not previously paid.
No such tax shall be collected upon any beverage bottled or sold in
Virginia when the State excise tax provided in this act shall have
been previously levied and paid thereon in full; but if on beverages
bottled in Virginia there shall have been paid by the manufacturer
the excise tax herein levied, such bottler shall pay all additional
excise taxes which may be due on such beverages in bottled form.

(c) When any person shall sell or offer for sale in Virginia any
beverages purchased or obtained from any person not licensed either
as a manufacturer, bottler, or wholesaler under the provisions of this
act, and on which the State excise tax herein levied has not been paid,
such person shall pay the tax levied in the preceding subsection.
No license issued to a retailer under this act shall be valid unless and
until such retailer shall have filed with the State Tax Commissioner a
bond, with a guaranty or surety company licensed to do business
in this State as surety, or personal surety approved by said State
Tax Commissioner, in such penalty as the State Tax Commissioner
may find to be sufficient to cover the tax liability of such retailer,
but in no event to be less than one thousand dollars. The State Tax
Commissioner, however, shall waive the bond requirement aforesaid
with respect to any retailer who may file a satisfactory contract or
agreement with the State Tax Commissioner that such retailer will
purchase for resale beverages from manufacturers, wholesalers or
bottlers licensed in this State and from no one else. The violation
of the terms of any such contract or agreement between any such
retailer and the State Tax Commissioner by the purchase by such
retailer of any beverages for resale from any one other than a manu-
facturer, bottler, or wholesaler licensed in this State shall auto-
matically revoke the license of any such retailer and such retailer
shall moreover be guilty of a misdemeanor.

(d) On or before the tenth day of each month every person
manufacturing, bottling or selling any beverages in Virginia shall
file with the State Tax Commissioner a report under cath on forms
which shall be prescribed by the State Tax Commissioner showing
the quantity of all beverages manufactured, bottled and/or sold by
such person during the preceding month, the amount of tax, if any,
for which such person is liable under the provisions of this act, and
containing such other information as the State Tax Commissioner
may require. At the same time such person shall pay to the State
Tax Commissioner all such excise taxes chargeable against him
under the provisions of this act on all such beverages so manufactured,
bottled and/or sold during the preceding month, unless such taxes
have been previously paid. The provisions of this subsection as to
the filing of such monthly reports shall not be applicable to any re-
tailer who purchased beverages from manufacturers, wholesalers or
bottlers licensed in this State and from no one else; provided, such
retailer shall have duly filed with the State Tax Commissioner the
contract or agreement mentioned in the preceding subsection.

(e) The excise tax herein provided for shall not be chargeable
against any manufacturer, bottler or wholesaler on any beverages
shipped out of this State by such manufacturer, bottler or whole-
saler for resale out of this State, provided evidence satisfactory to
the State Tax Commissioner be submitted to him in writing that
such beverages were shipped out of this State by such manufacturer,
bottler or wholesaler for resale out of this State.

(f) All monies collected by the State Tax Commissioner under
the provisions of this act shall be promptly paid into the general fund
of the State treasury.

(g) This section, as hereby amended, shall be in force on and
after July first, nineteen hundred and forty.

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-
tinued 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 manu-
facturer or bottler of beverages in this State shall, within twenty-
four 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 what-
soever in this State affix the proper stamp, crown, or lid to each con-
tainer and wherever a stamp is used, cancel the stamp so afhxed by
writing or stamping across the face thereof the name of such manu-
facturer 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 hours after such beverages come
into the possession 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 con-
tainer 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, fur-
nish and sell the stamps provided for in this section, in such de-
nominations 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 shal] 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.

(f) At the time of delivering beverages to any person, each
manufacturer and wholesaler in this State shall make a true duplicate
invoice 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 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.

(i) 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,
and any retailer who shall sell any beverages in bottled form bearing
the official crowns or lids at a price which renders insufficient the
excise tax already paid thereon as evidenced by such official crowns
or lids except as provided in subsection (t) of this section, shall be
deemed guilty of a misdemeanor, and, upon conviction thereof, shall
be punished by being fined not less than one hundred dollars nor
more than five hundred dollars, or by being confined in jail for a
term not exceeding six 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 collected
in the same manner provided for the collection of taxes generally.

(j) Manufacturers or other vendors 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 are thereafter shipped out of this State
by such manufacturers and bottlers for resale out of this State.

(1) Any person who falsely or fraudulently 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 counter-
feited any such stamps, crowns or lids, or knowingly or wilfully
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 purpose
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
years nor more than five 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 pur-
chased or received by him within two 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 shall be fined
not less than twenty-five dollars, nor more than one hundred dollars.

(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 pre-
scribed, 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 mis-
demeanor, and, upon conviction thereof, shall be fined not less than
one hundred dollars nor more than five hundred dollars, or confined
in jail not more than six months, or both, in the discretion of the
jury, or of the justice, or of the court trying the case without a jury.

(0) The State Tax Commissioner is hereby charged with the
enforcement of the provisions of this section, and is hereby authorized
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 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 person, firm, or corporation, designated therein as one of
the manufacturers of crowns or lids, an amount of crowns or lids
having the same aggregate tax value as the amount of tax repre-
sented 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 aggregate tax value as the amount of stamps so
used by him upon such exempt beverages.

(t) In order that the increases in the rates of the excise taxes
levied by section ten of this act, as amended, may be made uniformly
effective on July first, nineteen hundred and forty, the following pro-
visions are hereby enacted:

(1) Every wholesaler and retailer of beverages in this State
shall file with the State Tax Commissioner after July first, nineteen
hundred and forty and before July fifteenth, nineteen hundred and
forty, a report under oath on forms which shall be prescribed by the
State Tax Commissioner which report shall state in detail such
wholesaler’s or retailer’s inventory of beverages on which the excise
tax is increased by section ten of this act, as amended, on hand and in
transit to him as of the beginning of July first, nineteen hundred
and forty; and at the time of filing such report he shall pay to the
State Tax Commissioner the difference between the excise taxes
which have been already paid this State on such beverages and the
excise taxes at the rates levied by section ten of this act, as amended.
Any such wholesaler or retailer failing or refusing to file such report
and to pay such taxes within the time prescribed hereby, shall be
guilty of a misdemeanor, and on conviction thereof, shall be punished
accordingly; and, in addition, the State Tax Commissioner shall
proceed to collect such taxes by legal process.

(2) Every manufacturer and bottler of beverages in this State
and every manufacturer, bottler and wholesaler of beverages without
this State, to whom or on whose account any official crown or lid
tax certificate has been at any time issued before July first, nineteen
hundred and forty, or who has purchased or acquired at any time
before July first, nineteen hundred and forty any tax stamps, shall
file with the State Tax Commissioner after July first, nineteen hundred
and forty and before July fifteenth, nineteen hundred and forty, a
report under oath on forms which shall be prescribed by the State
Tax Commissioner which report shall give in detail the number and
description of each class of official crowns, lids and tax stamps for
use on beverages on which the excise tax is increased by section ten
of this act, as amended, which such manufacturer, bottler or whole-
saler may have on hand or in transit to him as of the beginning of
July first, nineteen hundred and forty, and whether such official
crowns, lids and tax stamps be attached or unattached to containers;
and at the time of filing such report he shall pay to the State Tax
Commissioner the difference between the excise taxes which have
been already paid this State on account of such official crowns, lids
and tax stamps and the excise taxes at the rates levied by section ten
of this act, as amended. Any such manufacturer or bottler in this
State failing or refusing to file such report and to pay such taxes
within the time prescribed hereby, shall be guilty of a misdemeanor,
and on conviction thereof, shall be punished accordingly; and, in
addition, the State Tax Commissioner shall proceed to collect such
taxes by legal process. Any such manufacturer, bottler or whole-
saler without this State failing or refusing to file such report and to
pay such taxes within the time prescribed hereby, shall not be issued
any official crown or lid tax certificate or permitted to purchase
any tax stamps so long as such manufacturer, bottler or wholesaler
may be in default, as aforesaid.

(u) This section, as hereby amended, shall be in force on and
after July first, nineteen hundred and forty; provided, however, that
the State Tax Commissioner shall have authority before that date,
to make provision for the furnishing of stamps, crowns and lids
required herein.