CHAPTER 418

An Act to amend and reenact § 4-41 of the Code of Virginia, relating to
the evidencing of payment of excise taxes upon beer. [H 636]

Approved March 15, 1956

Be it enacted by the General Assembly of Virginia:
ha That § 4-41 of the Code of Virginia be amended and reenacted as

ollows:

§ 4-41. (a) Containers other than bottles—The payment of the
taxes imposed by the preceding section shall be evidenced, as to containers
other than bottles, 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, 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) Manufacturers or bottlers.—Except as may be otherwise pro-
vided herein, each manufacturer or bottler of beer in this State shall,
within twenty-four hours after the beer is placed in an original container
or bottles, and prior to delivery of any container of beer to any whole-
saler, jobber, retailer, distributor or any other person 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) Wholesalers.—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 whole-
saler in this State-within twenty-four hours after such beer comes into
the possession of such wholesaler and prior to the delivery of any con-
tainer thereof to any retailer or other person in this State, and stamps
wherever used, shall be cancelled by writing or stamping across the face
thereof the name of such wholesaler and the date of such cancellation.

(d) Retailers—Each retailer in this State immediately upon the
receipt of any beer at his pace of business, and prior to disposing of the
same in any way, shall affix such stamps, crowns and lids to each con-
tainer thereof unless such stamps, crowns or lids shall have been pre-
viously 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) Commissioner to provide for stamps, crowns and lids.—The
State Tax Commissioner shall prescribe, prepare, furnish and sell the
stamps provided for in this section, in such denominations and quantities
as may be necessary for the payment of the tax imposed by the preceding
section. The crowns and lids provided for in this section shall be pre-
scribed by the Commissioner, and under rules and regulations prescribed
by him. They shall be purchased by the manufacturer or other person,
after the payment of the tax imposed by this chapter, only from such
persons, firms or corporations as may be designated as manufacturers of
such crowns and lids by the Commissioner. The Commissioner is author-
ized to enter into contracts on behalf of the State with one or more manu-
facturers for the manufacture, sale and distribution of such crowns or
lids, and shall require of such persons, firms and corporations so manu-
facturing, 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, in such penalty and upon such conditions as in the
opinion of the Commissioner will adequately protect the State. The crowns
gut lids shall be manufactured, sold and distributed at the cost of the

xpayer.

The Commissioner shall prescribe crowns of different colors for malt
beverages in the lower-price classification from colors prescribed for malt
beverages in the higher-price classification, and in releasing such crowns
shall act on representations made by the manufacturer as to the expected
or probable retail selling prices of his products.

Invoices of manufacturers and wholesalers.—At the time of
delivering beer to any person, each manufacturer and wholesaler in this
State shall make a true duplicate invoice 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 years, subject to the use and inspection of the Alco-
holic Beverage Control Board, the State Tax Commissioner, and their
agents or the agents of either of them.

(g) Records and reports of operators of boats and dining cars.—
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 prescribe
and shall submit monthly reports of such sales to the Commissioner upon
a form prescribed therefor by him and shall pay the tax levied under
§ 4-40 at the time such reports are filed.

(h) Stamps, crowns and lids affixed to original containers.—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) Penalties for violations in general—Any manufacturer or other
person, except as herein provided, who shall sell beer to wholesalers,
retailers or consumers, without affixing to the containers the stamps,
crowns or lids required by this section, and any person, except as herein

rovided, who shall purchase, receive, transport, store or sell any beer
in containers to which such stamps, crowns or lids are not affixed, shall
be deemed guilty of a misdemeanor, and, upon conviction thereof, shall
be punished by being fined not less than one hundred dollars nor more
than five hundred dollars, or by being confined in jail for a term not
exceeding six months, or by both such fine and confinement in jail in the
CH. 418] ACTS OF ASSEMBLY 479

discretion of the jury, of the trial justice or of the court trying the case
without a jury. In addition such person shall be liable for the taxes due
under the preceding section with interest at the rate of twelve per centum
per annum from the date such taxes were due and payable. The State

‘ax Commissioner shall have authority to assess such taxes and interest
and to cause the same to be collected in the same manner provided for
the collection of taxes generally.

(j) Beer from without State.——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 transported for delivery in this State.

(k) Beer shipped out of State—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 manufacturers and bottlers for resale out of this State.

(1) Forging, etc., stamps, crowns and lids; using more than once.—
Any person who falsely or fraudulently makes, forges, alters or counter-
feits any stamps, crowns or lids prescribed by the State Tax Commis-
sioner 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 wilfully 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 section, for the purpose of evading the tax imposed under
the preceding section, or for the purpose of aiding and abetting others
to evade such tax, shall be guilty of a felony, and, upon conviction thereof,
shall be punished by confinement in the penitentiary for not less than two
years nor more than five years.

(m) ecco | containers without stamps, etc.; failure to produce
invoice.—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 purchased or received by
him within two years prior to such demand, unless upon satisfactory
proof it is shown that such nonproduction is due to providential or other
causes beyond his control, shall be guilty of a misdemeanor and upon con-
viction thereof be fined not less than twenty-five dollars, nor more than
one hundred dollars.

(n) Penalties for other violations—Any person who shall fail, neg-
lect 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 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, hottled, stored, sold, offered
for sale or held for sale, shall be guilty of a misdemeanor, and upon con-
viction thereof, shall be fined not less than one hundred dollars nor more
than five hundred dollars, or confined in jail not more than six months,
or both, in the discretion of the jury, of the trial justice or of the court
trying the case without a jury.

(o) Commissioner to enforce section.—The State Tax Commissioner
is hereby charged with the enforcement of the provisions of this section,
and is hereby authorized to prescribe. adopt, promulgate and enforce rules
and regulations relating to any matter or thing pertaining to the adminis-
tration and enforcement of the provisions of this section and the collection
of taxes, penalties, and interest imposed by the preceding section.

(p) Regulations relating to transportation—The State Tax Com-
missioner is hereby authorized to prescribe, adopt, promulgate and en-
force rules and regulations relating to the transportation of beer through
this State and from points outside of this State to points within this
State, including a regulation to prohibit the direct shipment of beer from
points outside of Virginia to a United States military or naval reservation
within the geographical confines of Virginia for resale on such military
or naval reservation, 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) Waiver by Commissioner.—The State Tax Commissioner may
waive so much of subsection (e) of § 4-40 as he may regard unnecessary
for the efficient administration of this law.

(r) When taxes collected as provided in preceding section.— In the
event that the method prescribed in this section for the payment and col-
lection of the taxes imposed by § 4-40 shall become inoperative at any
time then such taxes shall be paid and collected as provided in § 4-40, 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 § 4-40. _.

(s) When stamps, etc., used on beer exempt from tax; obtaining
tax free supply. Whenever it is proved 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 § 4-40, the Commissioner shall
issue a certificate to said person whereby said person 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 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.