CHAPTER 384

An Act to amend and reenact § 4-109 of the Code of Virginia, relating
to stamps, crowns, and lids evidencing payment of excise taxes upon

beverages of not more than three and two-tenths per centum alcohol.
Lor
Be it enacted by the General Assembly of Virginia:
ah That § 4-109 of the Code of Virginia be amended and reenacted as

ollows:

§ 4-109. (a) Evidencing payment of taxes; “bottle” defined—The
payment of the taxes imposed by the preceding section shall be evidenced,
as to containers other than bottles as defined by this section, by the affixing
of stamps to the original containers in which beverages are placed, re-
ceived, stored, shipped or handled, and, as to containers consisting of
bottles as defined by this section, 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 continued 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) Manufacturers or bottlers.—Except as may be otherwise pro-
vided herein, each manufacturer 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 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) Wholesalers.—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 whole-
saler 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) Retailers.—Each retailer in this State immediately upon the re-
ceipt 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 pre-
viously 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) Commissioner to provide for stamps, crowns and lids.—The State
Tax Commissioner shall prescribe, prepare, furnish and sell the stamps
provided for in this section, in such denominations and quantities as may
be necessary for the payment of the tax imposed by § 4-108. The crowns
and lids provided for in this section shall be prescribed by the Commis-
sioner, and under rules and regulations prescribed by him they shall be
purchased by the manufacturer or other person, after the payment of such
tax, only from such persons, firms or corporations as may be designated
as manufacturers of such crowns and lids by the Commissioner. The Com-
missioner 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 corpora-
tions 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, in such penalty and upon such
‘conditions as in the opinion of the Commissioner will adequately protect
the State. The crowns and lids shall be manufactured, sold and distributed
at the cost of the taxpayer.

The Commissioner shall prescribe crowns of different colors for malt
beverages in the lower price classification from colors prescribed for malt
CH. 384] ACTS OF ASSEMBLY 431

beverages in the higher price classification, and in releasing such crowns
shall act on representations made by the manufacturer as to the
or probable retail selling prices of his products. .

_ (f) Invoices of manufacturers and wholesalers.—At the time of de-
livering beverages to any person, each manufacturer and wholesaler in
his State shall make a true duplicate invoice showing the date of delivery,
the amount and value of each shipment of beverage 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. is

(g) Records and reports of operators of boats and dining cars.—
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 pro-
vided for in this section, but instead shall keep such records of the sales
of such beverages in this Commonwealth as the State Tax Commissioner
shall prescribe and shall submit monthly reports of such sales to the
Commissioner upon a form prescribed therefor by him and shall pay the
tax levied under § 4-108 at the time such reports are filed. .

(h) Stamps, crowns and lids affixed to original containers.—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) Penalties for violations in general—Any manufacturer or other
person, except as herein provided, who shall sell beverages to wholesalers,
retailers or consumers, without affixing to the containers the stamps,
crowns or lids required by this chapter, and any person, except as herein
provided, who shall purchase, receive, transport, store or sell any bever-
ages in containers to which such stamps, crowns or lids 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 trial justice or of the court trying the case
without a jury. In addition such person shall be liable for the taxes due
under § 4-108 with interest at the rate of twelve per centum per annum
from the date such taxes were due and payable. The State Tax Commis-
sioner shall have authority to assess such taxes and interest and to cause
the same to be collected in the same manner provided for the collection of
taxes generally.

(j) Beverages from without State—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) Beverages shipped out of State—The State Tax Commissioner
shall promulgate rules and regulations to relieve manufacturers and bot-
tlers 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) Forging, etc., stamps, crowns or lids; using more than once.—
Any person who falsely or fraudulently makes, forges, alters or counter-
feits 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 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 chapter, for the purpose of evading the tax imposed under § 4-108,
or for the purpose of aiding or abetting others to evade such tax, 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) Possessing containers without stamps, crowns or lids; failure to
produce invoice.—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 years prior to such demand, unless upon
satisfactory proof it is shown that such nonproduction is due to providen-
tial 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 dollars.

(n) Penalties for other violations.—Any person who shall fail, neg-
lect 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 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 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 trial justice, or
of the court trying the case without a jury.

(o) Commissioner to enforce section.—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 per-
taining to the administration and enforcement of the provisions of this
wet and the collection of taxes, penalties and interest imposed by
(p) Regulations relating to transportation.—The State Tax Com-
missioner is hereby authorized to prescribe, 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,
including a regulation to prohibit the direct shipment of beverages from
points outside of Virginia to a United States miltary or naval reservation
within the geographical confines of Virginia for resale on such military
or naval reservation, 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

(q) Waiver by Commissioner.—The State Tax Commissioner may
waive so much of subsection (d) of § 4-108 as he may regard unnecessary
for the efficient administration of this chapter.

(r) When taxes collected as provided in preceding section.—In the
event that the method prescribed in his section for the payment and col-
lection of the taxes imposed by § 4-108 shall become inoperative at any
time then such taxes shall be paid and colleced as provided in § 4-108,
and in addition the State Tax Commissioner shall have authority and it
CHS. 384, 385, 386] ACTS OF ASSEMBLY 433

shall be his duty to assess and collect such back taxes as may be due and
payable but unpaid under the provisions of § 4-108. ..

(s) When stamps, etc., used on beverages exempt from tax; obtaining
tax free supply.—Whenever it is proved 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 § 4-108, the Commissioner
shall issue a certificate to such person whereby such person or his assignee
is entitled to obtain without payment of the tax otherwise represented
by such 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
represented by the crowns or lids so used upon the exempt beverages,
and the Commissioner shall issue and deliver without further cost, to
such person or his assignee an amount of stamps having the same aggre-
gate tax value as the amount of stamps so used by him upon such exempt

verages.