Chap. 140.—An ACT to amend and reenact Sections 27 and 28 of Chapter 94
of the Acts of Assembly of 1934, approved March 7, 1934, known as the
Alcoholic Beverage Control Act, as heretofore amended, in relation to
excise taxes. [H 26]

Approved March 6, 1948

Be it enacted by the General Assembly of Virginia:

1. That sections twenty-seven and twenty-eight of chapter
ninety-four of the Acts of Assembly of nineteen hundred and thirty-
four, approved March seventh, nineteen hundred and thirty-four,
known as the Alcoholic Beverage Control Act, as heretofore amend-
ed, be amended and reenacted so as to read as follows:

Section 27. Excise tax provided for; duties of State Tax Corh-
missioner in connection therewith.—(a) There is hereby levied
on all beer manufactured in Virginia an excise tax at the rate of
three dollars and ten cents per barrel of thirty-one gallons, and a
tax at the same rate on such beer in containers of more or less than
thirty-one gallons, but on such beer in bottles of not more than
seven ounces each the tax shall be one and one-half cents per bottle,
and on such beer in bottles of more than seven ounces each but
not more than twelve ounces each the tax shall be two cents per
bottle; and on such beer in bottles of more than twelve ounces
each, the tax shall be at a rate of one and two-thirds mills per ounce
per bottle. Such tax shall be paid by the person who manufactures
the said beer.

(b) There is hereby levied on all beer bottled in Virginia and
on all beer sold in Virginia, an excise tax at the rate of three dollars
and ten cents per barrel of thirty-one gallons, and a tax at the same
rate on such beer in containers of more or less than thirty-one
gallons, but on such beer in bottles of not more than seven ounces
each the tax shall be one and one-half cents per bottle, and on such
beer in bottles of more than seven ounces each but not more than
twelve ounces each the tax shall be two cents per bottle; and on

such beer in bottles of more than twelve ounces each, the tax shall
be at the rate of one and two-thirds mills per ounce per bottle. The
tax herein levied shall be paid by the respective bottlers and whole-
salers of the said beer, if not previously paid. No such tax shall be
collected upon any beer bottled or sold in Virginia when the State
excise tax provided for in this act shall have been previously levied,
and paid thereon in full; but if on beer bottled in Virginia there
shall have been paid by the manufacturer the excise herein levied,
such bottler shall pay all additional excise taxes which may be due
on such beer in bottled form.

(c) When any person shall.sell or offer for sale in Virginia
any beer purchased or obtained from any person not licensed either
as a brewery, 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 sub-
section.

(d) No retail license authorizing the licensee to sell beer under
the provisions of this act shall be valid unless and until the person
to whom such license is issued shall have filed with the State Tax
Commissioner a satisfactory contract or agreement with the State
Tax Commissioner that such person will purchase for resale beer
from manufacturers, bottlers or wholesalers licensed in this State
and from no one else; provided, however, that any corporation
licensed to sell beer on dining cars, buffet cars, club cars and/or
boats may, in lieu of filing such a contract or agreement, file with
the State Tax Commissioner a bond, with a guaranty or surety
company licensed to do business in this State as surety, in such
penalty as the said Commissioner may find to be sufficient to cover
the tax liability of such corporation, but in no event to be less than
one thousand dollars. The State Tax Commissioner shall promptly
notify the board of each such bond filed,-each such contract or
agreement entered into, and each amendment, alteration or can-
cellation thereof. ;

(e) On or before the tenth day of each month every person
manufacturing, bottling or selling any beer in Virginia shall file
with the State Tax Commissioner a report under oath on forms
which shall be prescribed by the State Tax Commissioner showing
the quantity of all beer 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, providing that corporations licensed to sell beer in
dining cars, buffet cars, club cars and/or boats shall have thirty
days from the end of each month within which to file the monthly
reports required by this subsection. 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
beer so manufactured 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 person licensed hereunder to
sell beer at retail who purchased beer from manufacturers, bottlers
or wholesalers licensed in this State and from no one else, pro-
vided, such person shall have duly filed with the State Tax Com-
missioner the contract or agreement mentioned in the preceding
subsection.

(f) The excise tax herein provided for shall not be chargeable
against any manufacturer, bottler or wholesaler on any beer shipped
out of this State by such manufacturer, bottler or wholesaler for
resale out of this State, or any beer shipped to a United States
military or naval reservation within the geographical confines of
Virginia for resale on such military or naval reservation, or on any
beer shipped to a post exchange of the armed forces of the United
States for resale by such post exchange, whether such post
exchange be located on a United States military or naval reserva-
tion or not, or on any beer shipped to any instrumentality of the
United States which is exempt on constitutional grounds from the
excise tax levied by this section, provided evidence satisfactory to
the State Tax Commissioner be submitted to him in writing in
each case that such beer was so shipped.

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

(h) If any person licensed under the provisions of this act
shall give or furnish gratuitously to any person in Virginia any
beer on which the excise tax herein provided for has not been
paid. such gift or furnishing shall for the purpose of this act be
considered a sale.

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

Section 28. Method and manner of evidencing the payment of
excise tax; use of stamps, crowns and lids; refunds; penalties;
provisions to make increases in rates of excise taxes uniformly
effective-—(a) The payment of the taxes imposed by the preceding
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 beer is 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 beer
is placed, received, stored, shipped or handled. Stamps shall be
affixed in such manner that their removal will require continued
applications of steam or water.

(b) Except as may be otherwise provided herein, each manu-
facturer or bottler of beer in this State shall, within twenty-four
hours after the beer is placed in an original container or bottles,
and prior to delivery of any container of beer 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 hours after such beer
comes 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 beer at his place of business, and prior to disposing of the
same in any way, shall affix such stamps, crowns and 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, fur-
nish and sell the stamps provided for in this section, in such denom-
inations 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 Com-
missioner they shall be purchased by the mannfacturer 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 Commis-
sioner. 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 corperations so manu-
facturing, 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 Com-
missioner will adequately protect the State. The crowns and lids
shall be manufactured, sold and distributed at the cost of the
taxpayer.

The State Tax Commissioner shall prescribe crowns of different
colors for malt beverages in the lower-price classification from
colors prescribed for malt beverages in the higher-price classifica-
tion, and in releasing such crowns shall act on representations made
by the manufacturer as to the expected or probable retail selling
prices of his products.

(f) At the time of delivering beer to any person, each manu-
facturer and wholesaler in this State shall make a true duplicate
invoice showing the date of delivery, the amount and value of each
shipment of beer 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 beer is 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 beer in this Commonwealth
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 twenty-seven 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 beer is normally placed, prepared for
market, received, sold or handled before such beer is sold, offered
for sale, or held for sale within this State.

(i) Any manufacturer or other person, except as herein pro-
vided, who shall sell beer to wholesalers, retailers or consumers,
without affixing to the containers the stamps, crowns or lids
required by this act, and any person, except as herein provided,
who shall purchase, receive, transport, store or sell any beer 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 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 Com-
missioner 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 beer from without this
State shall affix the stamps, crowns or lids to original containers
of beer 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 beer from the
liability to affix stamps, crowns or lids on such beer as is 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 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 counterfeited any such stamps, crowns or lids, or know-
ingly 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 and 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 peni-
tentiary 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 beer not bearing the
stamps, crowns or lids required to be affixed to each such con-
tainer; or fails to produce, upon demand by the State Tax Com-
missioner, or the Alcoholic Beverage Control Board, invoices of all
beer purchased 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 be
fined not less than twenty-five dollars nor more than one hundred

ollars.

(n) Any person who shall fail, neglect, or refuse to comply
with or shall violate any provision of this section, for which viola-
tion no specific penalty is provided, or any of the rules and regula-
tions prescribed, adopted and promulgated by the State Tax Com-
missioner 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 beer in and upon any premises where the same is 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 nor more than five hundred dollars,
or confined in jail not more than six months, or both, in the discre-
tion 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 author-
ized 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
_ the collection of taxes, penalties, and interest imposed by
this act.
(p) The State Tax Commissioner is hereby authorized to
prescribe, adopt, promulgate and enforce rules and regulations
relating to the transportation of beer 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 beer manufactured in this State.

(q) The State Tax Commissioner may waive so much of
subsection (e) of section twenty-seven 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 twenty-
seven of this act shall become inoperative at any time then such
taxes shall be paid and collected as provided in section twenty-
seven, 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 twenty-seven.

(s) Whenever it is proved to the satisfaction of the State Tax
Commissioner that any person has purchased and used stamps,
crowns or lids upon beer that has been sold by him in such manner
as is exempt from the excise tax levied under section twenty-seven,
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 beer, 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 beer.

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

(1) Every wholesaler and retailer of beer in this State shall
file with the State Tax Commissioner after July first, nineteen
hundred and forty-eight and before July fifteenth, nineteen hundred
and forty-eight, 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 beer on which
the excise tax is increased by section twenty-seven of this act, as
amended, on hand and in transit to him as of the beginning of
July first, nineteen hundred and forty-eight and at the time of filing
such report he shall pay to the State Tax Commissioner the differ-
ence between the excise taxes which have been already paid this
State on such beer and the excise taxes at the rates levied by section
twenty-seven of this act, as amended. Any 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 addi-
tion, the State Tax Commissioner shall proceed to collect such
taxes by legal process.

(2) Every manufacturer and bottler of beer in this State and
every manufacturer, bottler and wholesaler of beer, 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-eight, or who has purchased or acquired at any
time before July first, nineteen hundred and forty-eight any tax
stamps, shall file with the State Tax Commissioner after July first,
nineteen hundred and forty-eight and before July fifteenth, nineteen
hundred and forty-eight, 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 beer on which the excise
tax is increased by section twenty-seven of this act, as amended,
which such manufacturer, bottler or wholesaler may have on hand
or in transit to him as of the beginning of July first, nineteen
hundred and forty-eight, 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 Commis-
sioner 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
twenty-seven 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 manufac-
turer, bottler or wholesaler 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 manu-
facturer, 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-eight; provided, how-
ever, that the State Tax Commissioner shall have authority before
that date, to make provision for the furnishing of stamps, crowns
and lids required herein.