Chap. 352.—An ACT to amend and re-enact Section 10 of Chapter 3 of the Acts of
Assembly, Extra Session 1933, known as the 3.2 Beverage Act, as heretofore
amended, in relation to excise taxes. [S B 240]

Approved March 31, 1942

1. Be it enacted by the General Assembly of Virginia, That section
ten of chapter three of the Acts of Assembly, extra session, nineteen hun-
dred and thirty-three, as heretofore amended, be amended and re-enacted
so as to read as follows:
Section 10. (a) There is hereby levied on all beverages manu-
factured in Virginia an excise tax at the rate of two dollars and seventy-
five cents per barrel of thirty-one gallons, and a tax at the same rate on
such beverages in containers of more or less than thirty-one gallons, but
on such beverages in bottles of not more than twelve ounces each the tax
shall be one cent per bottle; provided, that on such beverages in bottles
of not more than twelve ounces each intended for sale or expected to be
sold at retail at more than thirteen cents per bottle, the tax shall be one
and one-half cents per bottle, and on such beverages intended for sale or
expected to be sold at retail at more than thirteen cents per bottle of twelve
ounces or less, if contained in bottles of more than twelve ounces each, the
tax shall be at the rate of one and one-quarter mills per ounce per bottle.
Such tax shall be paid by the person who manufactures the said beverages.

(b) There is hereby levied on all beverages bottled in Virginia and
on all beverages sold in Virginia, an excise tax at the rate of two dollars
and seventy-five cents per barrel of thirty-one gallons, and a tax at the
same rate on such beverages in containers of more or less than thirty-one
gallons, but on such beverages in bottles of not more than twelve ounces
each the tax shall be one cent per bottle ; provided, that on such beverages
in bottles of not more than twelve ounces each intended for sale or ex-
pected to be sold at retail at more than thirteen cents per bottle, the tax
shall be one and one-half cents per bottle, and on such beverages intended
for sale or expected to be sold at retail at more than thirteen cents per bot-
tle of twelve ounces or less, if contained in bottles of more than twelve
ounces each, the tax shall be at the rate of one and one-quarter mills per
ounce per bottle. The tax herein levied shall be paid by the respective bot-
tlers and wholesalers of the said beverages, if not previously paid. No
such tax shall be collected upon any beverage bottled or sold in Virginia
when the State excise tax provided in this act shall have been previously
levied and paid thereon in full; but if on beverages bottled in Virginia
there shall have been paid by the manufacturer the excise tax herein
levied, such bottler shall pay all additional excise taxes which may be due
on such beverages in bottled form.

(c) When any person shall sell or offer for sale in Virginia any
beverages purchased or obtained from any person not licensed either as
a manufacturer, 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 subsection. No license 1s-
sued to a retailer under this act shall be valid unless and until such re-
tailer shall have filed with the State Tax Commissioner a bond, with a
guaranty or surety company licensed to do business in this State as surety
or personal surety approved by said State Tax Commissioner, in such
penalty as the State Tax Commissioner may find to be sufficient to cover
the tax liability of such retailer, but in no event to be less than one thou-
sand dollars. The State Tax Commissioner, however, shall waive the bond
requirement aforesaid with respect to any retailer who may file a satis-
factory contract or agreement with the State Tax Commissioner that such
retailer will purchase for resale beverages from manufacturers, wholesal-
ers or bottlers licensed in this State and from no one else. The violation of
the terms of any such contract or agreement between any such retailer and
the State Tax Commissioner by the purchase by such retailer of any bev-
erages for resale from any one other than a manufacturer, bottler, or
wholesaler licensed in this State shall automatically revoke the license of
any such retailer and such retailer shall moreover be guilty of a misde-
meanor.

(d) On or before the tenth day of each month every person manu-
facturing, bottling or selling any beverages 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
beverages 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. 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 beverages so
manufactured, bottled 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 re-
tailer who purchased beverages from manufacturers, wholesalers or bot-
tlers licensed in this State and from no one else; provided, such retailer
shall have duly filed with the State Tax Commissioner the contract or
agreement mentioned in the preceding subsection.

(e) The excise tax herein provided for shall not be chargeable
against any manufacturer, bottler or wholesaler on any beverages shipped
out of this State by such manufacturer, bottler or wholesaler for resale
out of this State, or on any beverages shipped to a United States military
or naval reservation within the geographical confines of Virginia for re-
sale on such military or naval reservation, or on any beverages 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 reservation or not, or on any beverages shipped
to any instrumentality of the United States which is exempt on consti-
tutional grounds from the excise tax levied by this section, provided evi-
dence satisfactory to the State Tax Commissioner be submitted to him in
writing in each case that such beverages were so shipped.

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

(g) Nothing contained in this section as hereby amended shall be
construed as repealing any provision of section eleven of this act, as
amended, but this section and that section shall continue to be read to-
gether. .