Chap. 166.—An ACT to amend and re-enact Section 28 of chapter 94 of the
Acts of the General Assembly of Virginia of 1934, approved March 7, 1934,
and known, designated and cited as the Alcoholic Beverage Control Act, re-
lating to the collection of the beer excise tax; prescribing the method and
manner of evidencing the payment and collection of such tax by manufac-
turers, bottlers, wholesalers and retailers of beer in Virginia and requiring
such persons to keep records and make reports; regulating the refund of
taxes; and imposing penalties for violations of this section. [H B 276]

Approved March 12, 1936

1. Be it enacted by the General Assembly of Virginia, That sec-
tion twenty-eight of chapter ninety-four of the Acts of the General
Assembly of Virginia of nineteen hundred and thirty-four, approved
March seventh, nineteen hundred and thirty-four, and known,
designated and cited as the Alcoholic Beverage Control Act, be amen-
ed and re-enacted so as to read as follows:

Section 28. Method and manner of evidencing the payment of
excise tax; use of stamps, crowns and lids; refunds; penalties.

(a) The payment of the taxes imposed by the preceding sec-
tion shall be evidenced, as to containers other than bottles as defined
by this act, by the affixing of stamps to the original containers 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 or beer in this State shall, within twenty-four (24)
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, distributer, 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 (24) 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 stamp-
ing 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, furn-
ish and sell the stamps provided for in this section, in such denomina-
tions and quantities as may be necessary, for the payment of the tax
imposed by this act. The crowns and lids provided for in this sec-
tion shall 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. The cost of furnishing the stamps pro-
vided for herein shall be paid for out of the revenue which shall
be received from the taxes imposed by section twenty-seven of this
act.

(f) At the time of delivering beer to any person, each manu-
facturer and wholesaler in this State shall make a true duplicate in-
voice 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
(2) years, subject to the use and inspection of the Alcoholic Bever-
age 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 preccribe and shall submit monthly reports
of such sales to the State Tax Commissioner upon a form prescribed
therefor by said 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, with-
out 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 there-
of, shall be punished by being fined not less than one hundred dol-
lars ($100.00) nor more than five hundred dollars ($500.00), or by
being confined in jail for a term not exceeding six (6) 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 manner provided for the collection
of taxes generally.

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 trans-
ported 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 manu-
facturers 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 knowingly or wil-
fully 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 pur-
pose 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
(2) years nor more than five (5) 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 container ;
or fails to produce, upon demand by the State Tax Commissioner,
or the Alcoholic Beverage Control Board, invoices of all beer pur-
chased or received by him within two (2) years prior to such de-
mand, 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 ($25.00) nor more than one
hundred dollars ($100.00).

(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
prescribed, 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 beer in and upon any
premises where the same is manufactured, bottled, stored, sold, of-
fered 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 ($100.00) nor more than five hundred dollars ($500.00), or
confined in jail not more than six (6) 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 auth-
orized 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 beer through this State and from points out-
side 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 sub-
section (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 proven 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 persons 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 represented
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) This section as hereby amended shall be in effect on and after
August first, nineteen hundred and thirty-six, provided, however,
that the State Tax Commissioner shall have authority at any time
after June thirtieth, nineteen hundred and thirty-six, to make pro-
vision for the furnishing of stamps, crowns and lids required here-
under.