CHAPTER 131

An Act to amend and reenact §§ 4-40 and 4-108 of the Code of Virginia,
relating to the excise tax on beer and 8.2 beverages.
[H 244]

Approved February 26, 1952

Be it enacted by the General Assembly of Virginia:

1. That §§ 4-40 and 4-108 of the Code of Virginia be amended and
reenacted as follows:

§ 4-40. Excise tax; duties of State Tax Commissioner.—(a) Tax
on beer manufactured.—There is hereby levied on all beer manufactured
in Virginia an excise tax at the rate of three dollars and ten cents per
barrel of thirty-one gallons, and a tax at the same rate on such beer in
containers of more or less than thirty-one gallons, but on such beer in
bottles of not more than seven ounces each the tax shall be one and one-half
cents per bottle, and on such beer in bottles of more than seven ounces
each but not more than twelve ounces each, the tax shall be two cents per
bottle ; and on such beer in bottles of more than twelve ounces each the tax
shall be at a rate ofone and two thirds mills per ounce per bottle. Such tax
shall be paid by the person who manufactures the beer.

(b) Tax on beer bottled or sold.—There is hereby levied on all beer
bottled in Virginia and on all beer sold in Virginia, an excise tax at the
rate of three dollars and ten cents per barrel of thirty-one gallons, and
a tax at the same rate on such beer in containers of more or less than
thirty-one gallons, but on such beer in bottles of not more than seven
ounces each the tax shall be one and one-half cents per bottle, and on such
beer in bottles of more than seven ounces each but not more than twelve
ounces each the tax shall be two cents per bottle; and on such beer in
bottles of more than twelve ounces each, the tax shall be at the rate of
one and two-thirds mills per ounce per bottle. The tax herein levied shall
be paid by the respective bottlers and wholesalers of the beer, if not pre-
viously paid. No such tax shall be collected upon any beer bottled or sold
in Virginia when the State excise tax provided for in this section shall
have been previously levied, and paid thereon in full; but if on beer bottled
in Virginia there shall have been paid by the manufacturer the excise
herein levied, such bottler shall pay all additional excise taxes which. may
be due on such beer in bottled form.

(c) When seller to pay tax.—When any person shall sell or offer for
sale in Virginia any beer purchased or obtained from any person not
licensed either as a brewery, bottler or wholesaler under the provisions of
this chapter, and on which the State excise tax herein levied has not
been paid, such person shall pay the tax levied in the preceding subsection.

(d) Contract with State Tax Commissioner.—No retail license
authorizing the licensee to sell beer under the provisions of this chapter
shall be valid unless and until the person to whom such license is issued
shall have filed with the State Tax Commissioner a satisfactory contract
or agreement with the Commissioner that such person will purchase for
resale beer from manufacturers, bottlers or wholesalers licensed in this
State and from no one else; provided, however, that any corporation
licensed to sell beer on dining cars, buffet cars, club cars or boats may, in
lieu of filing such a contract or agreement, file with the Commissioner a
bond, with a guaranty or surety company licensed to do business in this
State as surety, in such penalty as the Commissioner may find to be
sufficient to cover the tax liability of such corporation, but in no event to
be less than one thousand dollars. The Commissioner shall promptly
notify the board of each such bond filed, each such contract or agreement
entered into, and each amendment, alteration or cancellation thereof.

(e) Monthly report and payment of tax.—On or before the tenth
day of each month each person manufacturing, bottling or selling any
beer in Virginia shall file with the State Tax Commissioner a report
under oath on forms which shall be prescribed by the Commissioner
showing the quantity of all beer manufactured, bottled 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 section, and containing
such other information as the Commissioner may require; provided that
corporations licensed to sell beer on dining cars, buffet cars, club cars or
boats shall have thirty days from the end of each month within which to
file the monthly reports required by this subsection. At the same time
such person shall pay to the Commissioner all such excise taxes chargeable
against him under the provisions of this chapter on all such beer so manu-
factured 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 re-
ports shall not be applicable to any person licensed hereunder to sell beer
at retail who purchased beer from manufacturers, bottlers or wholesalers
licensed in this State and from no one else; provided, such person shall
have duly filed with the State Tax Commissioner the contract or agree-
ment mentioned in the preceding subsection.

(f) Beer shipped out of State or to military or naval reservations;
sales and deliveries to certain ships.—The excise tax herein provided for
shall not be chargeable against any manufacturer, bottler or wholesaler
on any beer shipped out of this State by such manufacturer, bottler or
wholesaler for resale out of this State, or on any beer shipped to a United
States military or naval reservation within the geographical confines of
Virginia for resale on such military or naval reservation, or on any beer
shipped to a post exchange of the armed forces of the United States for re-
sale by such post exchange, whether such post exchange be located on a
United States military or naval reservation or not, or on any beer shipped
to any instrumentality of the United States which is exempt on constitu-
tional grounds from the excise tax levied by this section, or on any beer
sold and delivered to ships actually engaged in foreign commerce or com-
merce between the Atlantic and Pacific ports of the United States or
commerce between the United States and any of its possessions outside of
the several States and the District of Columbia, provided evidence satis-
factory to the State Tax Commissioner be submitted to him in writing in
each case that such beer was so shipped.

- (g) Disposition of moneys collected.—All moneys collected by the
State Tax Commissioner under the provisions of this chapter shall be
promptly paid into the general fund of the State treasury.

(h) Gift of untaxed beer considered sale.—If any person licensed
under the provisions of this chapter shall give or furnish gratuitously
to any person in Virginia any beer on which the excise tax herein pro-
vided for has not been paid, such gift or furnishing shall for the purpose
of this section be considered a sale.

(i) Sections construed together.—Nothing contained in this section
shall be construed as repealing any provision of Section 4-41, but such
sections shall be read together.

§ 4-108. Excise taxes on beverages; duties of State Tax Commis-
sioner.—(a) Tax on beverages manufactured.—There is hereby levied on
all beverages manufactured in Virginia an excise tax at the rate
of three dollars and ten 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 seven
ounces each the tax shall be one and one-half cents per bottle, and on
such beverages in bottles of more than seven ounces each but not more
than twelve ounces each the tax shall be two cents per bottle; and on
such beverages in bottles of more than twelve ounces each, the tax shall
be at the rate of one and two-thirds mills per ounce per bottle. Such tax
shall be paid by the person who manufactures the beverages.

(b) Tax on beverages bottled or sold.—There is hereby levied on
all beverages bottled in Virginia and on all beverages sold in Virginia,
an excise tax at the rate of three dollars and ten 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 seven ounces each the tax shall be one and one-half cents
per bottle, and on such beverages in bottles of more than seven ounces each
but not more than twelve ounces each the tax shall be two cents per bottle;
and on such beverages in bottles of more than twelve ounces each, the tax
shall be at the rate of one and two-thirds mills per ounce per bottle. The
tax herein levied shall be paid by the respective bottlers and wholesalers of
such beverages, if not previously paid. No such tax shall be collected upon
any beverages bottled or sold in Virginia when the State excise tax provid-
ed in this chapter 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 ad-
ditional excise taxes which may be due on such beverages in bottled form.

(c) When seller to pay tax; contract with Commissioner.—When
any person shall sell or offer forsale in Virginia any beverages purchased
or obtained from any person not licensed either as a manufacturer, bottler,
or wholesaler under the provisions of this chapter, 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 issued to a retailer under
this chapter shall be valid unless and until such retailer shall have filed
with the State Tax Commissioner a satisfactory contract or agreement with
the Commissioner that such retailer will purchase for resale beverages
from manufacturers, wholesalers or bottlers licensed in this State and
from no one else; provided, however, that any corporation licensed to
sell beverages on dining cars, buffet cars, club cars or boats may, In
lieu of filing such a contract or agreement, file with the Commissioner
a bond, with a guaranty or surety company licensed to do business in
this State as surety, in such penalty as the Commissioner may find to be
sufficient to cover the tax liability of such corporation, but in no event
to be less than one thousand dollars. The violation of the terms of any
such contract or agreement between any such retailer and the Commis-
sioner by the purchase by such retailer of any beverages 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 misdemeanor.

(d) Monthly report and payment of tax.—On or before the tenth
day of each month every person manufacturing, 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 Commissioner show-
ing the quantity of all beverages manufactured, bottled 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 section, and containing
such other information as the Commissioner may require. At the same
time such person shall pay to the Commissioner all such excise taxes
chargeable against him under the provisions of this section on all such
beverages so manufactured, bottled or sold during the preceding month,
unless such taxes have been previously paid. The provisions of this sub-
section as to the filing of such monthly reports shall not be applicable to
any retailer who purchased beverages from manufacturers, wholesalers
or bottlers licensed in this State and from no one else; provided, such
retailer shall have duly filed with the Commissioner the contract or agree-
ment mentioned in the preceding subsection.

(e) Beverages shipped out of State or to military or naval reserva-
tion; sales and deliveries to certain ships.—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 resale 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 constitutional grounds from the excise tax
levied by this section, or on any beverages sold and delivered to ships
actually engaged in foreign commerce or commerce between the Atlantic
and Pacific ports of the United States or commerce between the United
States and any of its possessions outside of the several States and the
District of Columbia, provided evidence satisfactory to the State Tax
Commissioner be submitted to him in writing in each case that such
beverages were so shipped.

(f) Disposition of moneys collected.—All moneys collected by the
State Tax Commissioner under the provisions of this chapter shall be
promptly paid into the general fund of the State treasury.