CHAPTER 535

An Act to amend and reenact §§ 4-25, 4-88 and 4-88 of the Code of
Virginia, relating to licenses issued by the Alcoholic Beverage Control
Board and taxes thereon, and to local licenses. CH 542]

Approved April 2, 1952

Be it enacted by the General Assembly of Virginia:

1. That §§ 4-25, 4-833 and 4-38 of the Code of Virginia be amended
and reenacted as follows:

§ 4-25. Licenses granted by Board.—The Board may grant, subject
to revocation, as provided in § 4-37, the following licenses under the pro-
visions of this chapter:

(a) Distillers’ licenses, which shall authorize the licensees to manu-
facture alcoholic beverages other than wine and beer, and to sell and
deliver or ship the same, in accordance with regulations of the Board, in
barrels, bottles or other closed containers, to the Board, and to persons
outside of Virginia for resale outside of Virginia, except that no deliveries
or shipments shall be made into any state the laws of which prohibit the
consignee from receiving or selling the same.

(a-1) Fruit distillers’ license, which shall authorize the licensees to
manufacture any alcoholic beverages made from fruit or fruit juices,
and to sell and deliver or ship the same, in accordance with regulations
of the board, in barrels, bottles or other closed containers, to the Board,
and to persons outside of Virginia for resale outside of Virginia, except
that no deliveries or shipments shall be made into any state the laavs of
which prohibit the consignee from receiving or selling the same.

(b) Winery licenses, which shall authorize the licensees to manufac-
ture wines and to sell and deliver or ship the same, in accordance with
regulations of the Board, in barrels, bottles or other closed containers, to
the Board, and to persons outside of Virginia for resale outside of Vir-
ginia, except that no deliveries or shipments shall be made into any state
the laws of which prohibit the consignee from receiving or selling the
same, and shall in addition authorize the licensee to operate distilling
equipment on the premises of the licensee in the manufacture of spirits
from fruit or fruit juices only, which shall be used only for the fortification
of wine produced by the licensee.

(c) Brewery licenses, which shall authorize the licensees to manufac-
ture beer and to sell and deliver or ship the same, in accordance with
regulations of the Board, in barrels, bottles or other closed containers, to
persons licensed under the provisions of this chapter to sell the same at
wholesale or retail for the purpose of resale, and to owners of boats regis-
tered under the Iaws of the United States sailing for ports of call of a
foreign country or another state, and to persons outside of Virginia for
resale outside of Virginia, except that no deliveries or shipments shall
be made into any state the laws of which prohibit the consignee from
receiving or selling the same. |

(d) Bottlers’ licenses, which shall authorize the licensees to acquire
and receive deliveries and shipments of beer in barrels or other closed
containers and to bottle, sell and deliver or ship the same, in accordance
with regulations of the Board, to persons licensed under the provisions
of this chapter to sell the same at wholesale or retail for the purpose of
resale and to owners of boats registered under the laws of the United
States sailing for ports of call of a foreign country or another state, and
to persons outside of Virginia for resale outside of Virginia, except that
no deliveries or shipments shall be made into any state the laws of which
prohibit the consignee from receiving or selling the same.
(e) Wholesale beer licenses, which shall authorize the licensees to
acquire and receive deliveries and shipments of beer and to sell and
deliver or ship the same, in accordance with regulations of the Board, in
barrels, bottles or other closed containers, to persons licensed under the
provisions of this chapter to sell the same at wholesale or retail for the
purpose of resale, and to owners of boats registered under the laws of the
United States sailing for ports of call of a foreign country or another
state, and to persons outside of Virginia for resale outside of Virginia,
except that no deliveries or shipments shall be made into any state the
laws of which prohibit the consignee from receiving or selling the same.

(f) Wholesale druggist licenses to wholesale druggists, which licenses
shall authorize the licensees to buy alcohol from the Board and to sell and
deliver or ship the same in accordance with regulations of the Board and
under its supervision, to druggists for the purpose of compounding and
resale, and to persons duly authorized to operate pharmacies outside of
Virginia for the purpose of compounding and resale outside of Virginia,
except that no deliveries or shipments shall be made into any state the
laws of which prohibit the consignee from receiving or selling the same.

(zg) Wholesale wine distributors’ licenses, which shall authorize the
licensees to acquire and receive deliveries and shipments of wine from the
Board, and to sell and deliver or ship the same in accordance with regula-
tions of the Board in barrels, bottles or other closed containers, to persons
licensed to sell the same in Virginia, and to persons outside of Virginia
for resale outside of Virginia, except that no deliveries or shipments shall
be made into any state the laws of which prohibit the consignee from
selling or receiving the same.

(h) Retail on-premises wine and beer licenses to:

(1) Hotels, which licenses shall authorize the licensees to sell wine
and beer in dining rooms and other designated rooms thereof, either with
or without meals, for consumption on the premises only in such rooms or
in private guest rooms thereof; |

(2) Restaurants, which licenses shall authorize the licensees to sell
wine and beer in the dining rooms thereof, either with or without meals,
for consumption on the premises only in such dining rooms;

(3) Clubs, which licenses shall authorize the licensees to sell wine
and beer in the dining rooms and other designated rooms thereof, either
with or without meals, for consumption on the premises only in such
rooms or in private guest rooms thereof; ~

(4) Persons operating boats, dining cars, buffet cars and club cars,
which licenses shall authorize the licensees to sell on the boats, dining
cars, buffet cars and club cars so operated by them wine and beer in the
dining rooms and other designated rooms of the boat and in the dining
cars, buffet cars and club cars of trains, either with or without meals,
for consumption on the premises only in such rooms, or in such cars when
carrying passengers ;

(5) Persons, who in the opinion of the Board are suitable to be so
licensed, which licenses shall authorize the licensees to sell, for on-premises
consumption only, wine and beer in such places as the Board shall deem
suitable for such purposes.

(i) Retail on-premises beer licenses to

(1) Hotels, which licenses shall authorize the licensees to sell beer
in the dining rooms and other designated rooms thereof, either with or
without meals, for consumption on the premises only in such rooms or in
private guest rooms thereof;

(2) Restaurants, which licenses shall authorize the licensees to sell
beer in dining rooms thereof, either with or without meals, for consump-
tion on the premises only in such dining rooms;

(3) Clubs, which licenses shall authorize the licensees to sell beer
in the dining rooms and other designated rooms thereof, either with or
without meals, for consumption on the premises only in such rooms or in
private guest rooms thereof;

_ (4) Persons operating boats, dining cars, buffet cars and club cars,
which licenses shall authorize the licensees to sell on the boats, dining
cars, buffet cars and club cars so operated by them beer in the dining
rooms and other designated rooms of the boats and in the dining cars,
buffet cars and club cars of trains, either with or without meals, for con-
sumption on the premises only in such rooms, or in such cars when carry-
ing passengers;

_ (3) Persons, who in the opinion of the Board are suitable to be so
licensed, which licenses shall authorize the licensees to sell, for on-premises
consumption only, beer in such places as the Board shall deem suitable
for such purpose.

(j) Retail off-premises wine and beer licenses, which shall authorize
the licensees to sell wine and beer at retail only in closed packages for
consumption off the premises of such licensees and to deliver or ship the
same to the purchasers thereof, in accordance with regulations of the

oard.

(k) Retail off-premises winery licenses, which shall be issued only
to persons holding winery licenses, which licenses shall authorize the
licensees to sell wine at retail at the place of business designated in the
winery license, in closed packages for consumption off the premises of
such licensees and to deliver or ship the same to the purchasers thereof,
in accordance with regulations of the Board.

(1) Retail off-premises beer licenses, which shall authorize the licen-
sees to sell beer at retail only in closed packages for consumption off the
premises of such licensees and to deliver or ship the same to the pur-
chasers thereof, in accordance with regulations of the Board.

(m) Retail on-and-off-premises wine and beer licenses to persons
enumerated in subsection (h) of this section, which licenses shall confer
all rights and powers conferred by retail on-premises wine and _ beer
licenses and in addition thereto shall authorize the licensees to sel] wine
and beer at retail in closed packages for consumption off the premises of
such licensees and to deliver or ship the same to the purchasers thereof,
in accordance with regulations of the Board.

(n) Retail on-and-off-premises beer licenses to the persons enumer-
ated in subsection (i) of this section, which licenses shall confer all the
rights and powers conferred by retail on-premises beer licenses and in
addition thereto shall authorize the licensees to sel] beer at retail in closed
packages for consumption off the premises of such licensees and to deliver
or ship the same to the purchasers thereof, in accordance with regulations
of the Board.

(o) Druggists’ licenses to druggists, which licenses shall authorize
nee licensees to sell alcoholic beverages upon prescriptions as provided
in -49,

‘(p) Banquet licenses to persons in charge of banquets, which licenses
shall authorize the licensees to sell wine and beer in designated rooms for
consumption on the premises. A separate license shall be required for
each banquet; but no such license shall be required of any hotel, restaurant
or club holding a retail wine and beer license issued under the provisions
of this chapter.

(q) The term “designated rooms” as used in this section shall mean
rooms approved by the Board for particular licensees.

(r) The Board shall at least weekly certify to the State Tax Com-
missioner a list of all persons licensed hereunder, during the period cov-
ered by such certification.

§ 4-38. Taxes on State licenses.—(a) Amount of Tax.—The taxes
on State licenses issued pursuant to the provisions of this chapter shall
be as follows:

(1) For each distiller’s license, if to manufacture not in excess of
five thousand gallons of alcohol or spirits, or both, during the year in
which the license is issued, one hundred dollars; and if to manufacture
more than five thousand gallons during such year, one thousand dollars
per annum;

(2) For each winery license, if to manufacture not in excess of five
thousand gallons of wine during the year in which the license is issued,
one hundred dollars; and if to manufacture more than five thousand
gallons during such year, one thousand dollars per annum;

(3) For each brewery license, one thousand dollars per annum;

(4) For each bottler’s license, five hundred dollars per annum;

(5) For each wholesale beer license, two hundred and fifty dollars
per annum;

(6) For each wholesale wine distributor’s license, two hundred and fif-
ty dollars and for each wholesale druggist’s license, ten dollars per annum;

(7) For each retail on-premises wine and beer license to a hotel,
restaurant, club or other person (except a person operating a boat, dining
car, buffet car or club car), twenty dollars per annum; for each such
license to a person operating a boat, dining car, buffet car or club car,
twenty dollars per annum for each of the average number of boats, dining
cars, buffet cars or club cars operated daily in this State;

(8) For each retail on-premises beer license to a hotel, restaurant,
club or other person (except a person operating a boat, dining car, buffet
car or club car), ten dollars per annum; for each such license to a person
operating a boat, dining car, buffet car or club car, ten dollars per annum
for each of the average number of boats, dining cars, buffet cars or club
cars operated daily in this State; ,

(9) For each retail off-premises wine and beer license, twenty dollars
per annum;

(10) For each retail winery off-premises license, ten dollars per
annum;

(11) For each retail off-premises beer license, ten dollars per annum;

(12) For each retail on-and-off-premises wine and beer license to a
hotel, restaurant, club or other person( except a person operating a boat
dining car, buffet car or club car), forty dollars per annum; for each such
license to a person operating a boat, dining car, buffet car or club car,
forty dollars per annum for each of the average number of boats, dining
cars, buffet cars or club cars operated daily in this State;

(18) For each retail on-and-off-premises beer license to a hotel,
restaurant, club or other person( except a person operating a boat, dining
car, buffet car or club car), twenty dollars per annum; for each such
license to a person operating a boat, dining car, buffet car or club car,
twenty dollars per annum for each of the average number of boats, dining
cars, buffet cars or club cars operated daily in this State;

(14) For each druggist license, ten dollars per annum;

(15) For each banquet license, five dollars.
dollans 6) For each fruit distillers’ license, one thousand five hundred

rs.

(b) Proration of tax.—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 issued in the fourth quarter of any year the tax shall be decreased
by three-fourths. If the license on which the tax is prorated be a distiller’s
license to manufacture not in excess of five thousand gallons of alcohol
or spirits, or both, during the year in which the license is issued, or a
winery license to manufacture not in excess of five thousand gallons of
wine during the year in which the license is issued, the number of gallons
permitted to be manufactured shall be prorated likewise; provided, that
should the holder of a distiller’s license or a winery license to manufacture
not in excess of five thousand gallons of alcohol or spirits, or both, or
wine, apply during the license year for an unlimited distiller’s or winery
license, such person shall pay for such unlimited license a license tax equal
to the amount that would have been charged had such license been applied
for at the time that the license to manufacture less than five thousand
gallons of alcohol or spirits or wine, as the case may be, was issued, and
such person shall be entitled to a refund of the amount of license tax
previously paid on the limited license.

(c) Other State taxes.—Nothing in this chapter 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 chapter, shall be liable to State
merchants’ license taxation and State restaurant license taxation and other
State taxation the same as if the alcoholic beverages were non-alcoholic ;
provided, however, that in ascertaining the liability of a beer wholesaler
to merchants’ license taxation, and in computing the wholesale merchants’
license tax on a beer wholesaler, the first one hundred and sixty-three
thousand eight hundred dollars of beer purchases shall be disregarded ;
and in ascertaining the liability of a wholesale wine distributor to mer-
chants’ license taxation, and in computing the wholesale merchants’ license
tax on a wholesale wine distributor, the first one hundred and sixty-three
thousand eight hundred dollars of wine purchases shall be disregarded ;
and provided, further, that if any such beer wholesaler or wholesale wine
distributor pays no separate beverage license tax under chapter 2 of this
Title by reason of § 4-39, the words “beer” and “wine’’ as used in the
foregoing proviso shall be construed to include the beverages covered by
such chapter.

(d) Refunds.—The board is hereby authorized and empowered to
correct erroneous assessments made by it against any person and to make
refunds of any amounts collected pursuant to erroneous assessments, or
collected as taxes on licenses, which are subsequently refused or applica-
tion therefor withdrawn, and to allow credit for license taxes paid by any
licensee for any license which is subsequently merged or changed into
another license during the same license year. No refund shall be made
of any such amount, however, unless made within one year from the date
of collection of the same.

§ 4-88. (a) Provision for licenses and taxes.—In addition to the
foregoing State licenses provided for in this chapter, the governing
of each city and town in the State is hereby authorized to provide by
ordinance for the issuance of city and town licenses, and to charge and
collect license taxes therefor, to persons licensed by the Board to manu-
facture, bottle or sell alcoholic beverages within such city or town. The
license taxes which may be charged and collected by such cities and towns
shall not exceed the following sums:

(1) For each distiller’s license, one thousand dollars per annum; no
such local license shall be required for any person who shall manufacture
not more than five thousand gallons of alcohol or spirits or both during
such license year;

(2) For each winery license, one thousand dollars per annum;

(3) For each brewery license, one thousand dollars per annum;

(4) For each bottler’s license, five hundred dollars per annum;

(5) For each wholesale beer license, in a city of the first class, two
hundred and fifty dollars, in a city of the second class, one hundred and
twenty-five dollars, and in a town, seventy-five dollars, per annum;
(6) For each wholesale wine distributor’s license fifty dollars per
annum, and for each wholesale druggist license, ten dollars per annum ;

(7) For each retail on-premises wine and beer license for a hotel,
restaurant or club, and for each retail off-premises wine and beer license,
in a city of the first class one hundred and fifty dollars, in a city of the
second class seventy-five dollars, and in a town thirty-seven dollars and
fifty cents, per annum;

(8) For each retail on-premises beer license for a hotel, restaurant
or club,.and for each druggist license, in a city of the first class, one
hundred dollars, in a city of the second class, fifty dollars, and in a town,
twenty-five dollars, per annum;

(9) For each banquet license, five dollars;

(10) For each fruit distillers’ license, one thousand five hundred

rs.

(b) Common carriers.—No local license tax shall be either charged
or collected for the privilege of selling wine and beer, or beer, in dining
rooms and other designated rooms of boats, and in dining cars, buffet
cars and club cars of trains, when carrying passengers, for consumption
on. the premises only.

(c) Classification.—The governing body of a city may, in its discre-
tion, classify licenses and graduate the license taxes therefor in such
manner as it may deem proper.

(d) State licenses required.—No city or town shall issue any such
local license to any person, unless such person shall hold or shall secure
simultaneously therewith the proper State license provided for in fhis
chapter. If any person shall hold any such local license without at the
same time holding the proper State license provided for by this chapter,
such local license shall, during the period when such person does not hold
the proper State license, confer no rights, powers or privileges under the
provisions of this Chapter upon such person.

(e) Merchants’ and restaurants’ license taxes.—The governing body
of each city and town in the State, in imposing local wholesale merchants’
license taxes measured by purchases, local retail merchants’ license taxes
measured by sales, and local restaurant license taxes measured by sales,
may include alcoholic beverages in the base for measuring such local
license taxes the same as if the alcoholic beverages were non-alcoholic;
and no local alcoholic beverage license authorized by this chapter shall
be construed as exempting any licensee from any local merchants’ or local
restaurant license tax, but such local merchants’ and local restaurant
license taxes may be in addition to the local alcoholic beverage license taxes
authorized by this chapter; provided, however, that the governing body of
any city or town, in adopting an ordinance under this section, shall pro-
vide that, in ascertaining the liability of a beer wholesaler to local
merchants’ license taxation under the ordinance, and in computing the
local wholesale merchants’ license tax on such beer wholesaler, purchases
of beer up to a stated amount shall be disregarded, which stated amount
shall be the amount of beer purchases which would be necessary to produce
a local wholesale merchants’ license tax equal to the local wholesale beer
license tax paid by such wholesaler; and such ordinance shall also provide
that, in ascertaining the liability of a wholesale wine distributor to local
merchants’ license taxation under the ordinance, and in computing the
local wholesale merchants’ license tax on such wholesale wine distributor,
purchases of wine up to a stated amount shall be disregarded, which
stated amount shall be the amount of wine purchases which would be
necessary to produce a local wholesale merchants’ license tax equal to the
local wholesale wine distributors’ license tax paid by such wholesale wine
distributor; and provided, further, that if any such beer wholesaler or
wholesale wine distributor pays no separate beverage license tax under
chapter 2 of this Title by reason of § 4-39, the words “beer” and “wine”
as used in the foregoing proviso shall be construed to include the beverages
covered by such chapter.

(f) Delivery on previous orders.—No city or town shall impose any
local alcoholic beverages license tax on any wholesaler or distributor for
the privilege of delivering alcoholic beverages in the city or town on orders
previously taken when such wholesaler or distributor maintains no place
of business in such city or town.