Chap. 53.—An ACT to amend and re-enact Section 17-a of Chapter 94 of the
Acts of Assembly of 1934, approved March 7, 1934, known as “The Alcoholic
Beverage Control Act”, the section relating to tax on certain alcoholic beverages
and distribution of revenue. [S B 67]

Approved February 27, 1946

Re it enacted by the General Assembly of Virginia:

1. That section seventeen-a of chapter ninety-four of the Acts of
Assembly of nineteen hundred thirty-four, approved March seven, nine-
teen hundred thirty-four, be amended and re-enacted, as follows:

Section 17-a. State tax on certain alcoholic beverages.—(a) There
is hereby levied a State tax upon all wine purchased from the Virginia
Alcoholic Beverage Control Board by persons licensed to sell wine at
wholesale in Virginia, and upon all wines sold by the Virginia Alcoholic
Beverage Control Board to retail licensees for resale in Virginia by such
licensees, subject to the provisions hereafter in this section contained.
The tax hereby levied shall be collected by the Board upon each sale of
wine to a wholesale wine distributor or for resale to a retail licensee in
Virginia, and upon all wines sold by the Virginia Alcoholic Beverage
Control Board to retail licensees for resale in Virginia by such licensees.
All amounts collected by the Board pursuant to the provisions of this
section shall be promptly paid into the State treasury and credited to
the general fund in the treasury and two-thirds of said amount shall be
paid to the several counties and cities of the Commonwealth in proportion
to their respective population, and in those counties wherein is situated
any incorporated town constituting a special school district and operated
as a separate school district under a town school board of three members
appointed by the town council, the county treasurer shall pay into the
town treasury the proper proportionate amount received hereunder by
him in the proportion that the population of such town bears to the
population of the entire county and two-thirds of the tax hereby levied
1s appropriated for the purpose of distribution among the several counties
and cities as is herein provided.

The term “‘population” as used herein shall mean the population ac-
cording to the last preceding United States census. If the population
of any city or town shall have been increased through the annexation of
any territory since the last preceding United States census such increase
shall, for the purpose of this act, be added to the population of such city
or town as shown by the last preceding United States census and a
proper reduction made in the population of the county or counties from
which the annexed territory was acquired.

(b) On all wine so purchased for sale, the tax shall be thirty-five
cents a gallon, in addition to any mark-up charged by the Virginia Alco-
holic Beverage Control Board.

(c) To enable the Board to collect the tax hereby levied, from
wholesale wine distributors, and retail licensees, and the wholesale dis-
tributors and retail licensees shall make such reports in such manner and
at such times as the Board from time to time requires and shall pay the
tax to the Board at or prior to each purchase of wine, or at such other
time or times as the Board requires.

(d) There is hereby levied a State tax upon all wine in the pos-
session of wholesale wine distributors in Virginia for sale to retail li-
censees in Virginia, which has not been sold and delivered by the whole-
sale wine distributor to a retail licensee at the time this act becomes
effective.

On all such wine so possessed by such wholesale wine distributors
the tax shall be thirty-five cents a gallon, in addition to any mark-up
charged by the Board. To enable the Board to collect from such whole-
sale wine distributors the tax hereby levied, such wholesale wine distribu-
tors shall make such reports in such manner and at such times as the
Board from time to time requires and shall pay the tax to the Board at
such time or times as the Board requires.

(e) The term ‘‘wholesale wine distributor’’, as used in this section,
means one who holds a wholesale wine distributor’s license issued under
the provisions of this act. The term “retail licensee”, as used in this sec-
tion, means one who is licensed under this act to sell wine at retail. The
definitions contained in section two of this act shall apply to the words
and terms used in this section.

(f{) The Virginia Alcoholic Beverage Control Board shall be em-
powered to make a refund of any tax paid to it under this act when the
wine upon which such tax has been paid has been condemned and 1s not
permitted to be sold in Virginia.

(g) All wines sold through the government stores shall be sold at
such price as will include the amount of the tax herein levied on wines
sold by other than government stores; the profits realized from such
mark-up shall be added to, and distributable in the same manner as, the
profits from the tax on wine sold by other than government stores.