CHAPTER 358

An Act to amend and reenact § 28, as amended, of Chapter 392 of the
Acts of Assembly of 1960, approved March 80, 1960, which levied
excise taxes on certain tobacco products, to-wit, little cigars, cheroots,
stogtes, cigars, and cigarettes; provided for the collection and distri-
bution of such taxes and the administration of the act, and pre-
scribed penalties for violations; the section relating to duration of
the taxes, so as to provide that the taxes at the rates so levied on
such tobacco products shall continue in effect until August 31, 1966,
at which time the taxes on such tobacco products, except cigarettes,
shall expire by limitation, and the tax on cigarettes shall continue
in effect on and after September 1, 1966 at a reduced rate until
otherwise provided by law.

[S 280]

Approved April 1, 1966

Be it enacted by the Genera] Assembly of Virginia:
l. That § 28, as amended, of Chapter 392 of the Acts of Assembly of
1960, approved March 30, 1960, be amended and reenacted as follows:
- (a) This act shall be in force without change until * August
thirty-first, nineteen hundred and sixty- * siz.
(b) As of the end of August 81, 1966 the taxes levied by this act
on little cigars, cheroots, stogies and cigars shall expire by limitation and
shall not be levied after that date.

(c) On September 1, 1966 the tax levied by this act on cigarettes
at the rate of one and one-half mills on each cigarette shall be reduced to
one and one-quarter mills on each cigarette; and such reduced rate shall
be in force on that date and thereafter until otherwise provided by law,
together with all other provisions of this act relating to cigarettes.

(d) Any qualified wholesaler who may have on hand or in transit as
of the close of business August 31, 1966, any Virginia revenue stamps
designed for little cigars, cheroots, stogies or cigars, whether affixed or
unaffixed to containers, may return the unaffixed stamps to the Depart-
ment of Taxation for redemption, and may file an application with the
Department of Taxation for relief with respect to the affixed stamps. In
etther case the Department of Taxation, upon being satisfied that the
wholesaler is entitled thereto, shall issue such wholesaler a tax credit
certificate in the proper amount to cover the tax value of such stamps
less the discount of five per cent previously allowed the wholesaler thereon.
Such unaffixed stamps shall be returned to the Department of Taxation
for redemption, and an application for relief with respect to the affixed
stamps shall be filed, within ten days after September 1, 1966. Forms
for use under this paragraph shall be prescribed and furnished by the
Department of Taxation and shall call for adequate information. An
application for relief with respect to the affixed stamps shall state the
pertinent facts as of the close of business August 31, 1966, and shall be
verified by the affidavit of the applicant. Additional evidence may be
required in any doubtful case.

(e) Any qualified wholesaler who may have on hand or in transit
as of the close of business August 31, 1966, any Virginia revenue stamps
designed for cigarettes, whether affixed or unaffized to packages, which he
purchased from the Department of Taxation and for which he paid the
rate of tax in force prior to September 1, 1966, namely, one and one-half
mills per cigarette, may apply to the Department of Taxation, on forms
prescribed and furnished by it, for the issuance of a tax credit certificate
to cover the difference between the higher rate of tax thus paid and
the lower rate of tax in effect on September 1, 1966, less the discount
of five per cent previously allowed the wholesaler thereon. Every such
application for a tax credit certificate shall be filed within ten days after
September 1, 1966; it shall state the pertinent facts as of the close of
business August 31, 1966, and it shall be verified by the affidavit of the
applicant. If the Department of Taxation is satisfied that the application
ts in proper form and substance, it shall issue a tax credit certificate to the
applicant in the correct amount as soon as practicable after the receipt
of the application. Additional evidence may be required in any doubtful
case. The foregoing provisions of this paragraph shall also apply to
qualified wholesalers who use authorized metering devices to evidence the
payment of the cigarette tax, and in the case of an unused portion of any
meter setting at the higher rate of tax, relief by tax credit certificate
shall be given for the difference between the higher rate of tax in force
prior to September 1, 1966 and the lower rate of tax in effect on Sep-
tember 1, 1966, less the discount of five per cent previously allowed the
wholesaler at the time of the meter setting.