CHAPTER 677

An Act to impose and provide for the collection of a license tax on
persons furnishing and supplying stamps, coupons, tickets or devices
redeemable for cash or goods, merchandise or commodities; to require
the keeping of records and the making of reports; and to confer
powers and impose duties on the State Tax Commissioner. CH 699]

Approved March 31, 1956

Be it enacted by the General Assembly of Virginia:
1. § 1. Every person, as defined in § 1-18.19 of the Code of Virginia
engaged in the business of furnishing or supplying, for any consideration
to others to use in, with or for the sale of goods, merchandise or com-
modities any stamps, coupons, tickets or similar devices (hereinafter
sometimes referred to as premio stamps”) which entitle the person
receiving the same with such sale to procure any goods, merchandise, or
commodities free of charge, or for less than the market price thereof, or
1036 ACTS OF ASSEMBLY [va., 1956

to receive cash for such premium stamps shall pay a license tax for the
privilege of doing business in this State to be measured by the value of
such premium stamps furnished or supplied during the next preceding
year.

§ 2. The amount of license tax to be paid by any such person shall
be as follows:

If the value of the premium stamps sold in such year did not exceed
ten thousand dollars, the amount shall be fifty dollars; when such value
exceeded ten thousand dollars, the amount shall be fifty dollars on the
first ten thousand dollars and twenty-five cents per one hundred dollars
upon all in excess of ten thousand dollars.

§ 3. As used herein the word “value” means the average value if
sold at retail of the goods, merchandise or commodities for which the
premium stamps may be redeemed, determined in accordance with regu-
lations which shall be promulgated by the State Tax Commissioner.

§ 4. Each person subject to the tax hereby imposed on the first day
of January of each year, or within ten days thereafter, shall make a
report in writing, under oath, to the commissioner of the revenue for the
county or city in which is located his place of business, showing the value
of premium stamps furnished or supplied during the next preceding calen-
dar year. The forms of the reports required by this section shall be pre-
pared by the Department of Taxation and furnished to each commissioner
of the revenue and by him distributed among such persons within his
county or city. When a person subject to the tax hereby imposed shall
have paid such license tax and any local license tax imposed by the city,
town or county in which is located an established place of business of such
person, no further license or license tax shall be required or imposed by
this State or any other city, town or county for the conduct of the busi-
ness of furnishing or supplying premium stamps or the redemption
thereof or the transfer of cash, goods, merchandise, commodities or other
property therefor.

§ 5. For the purpose of ascertaining the tax to be paid by a person
subject to the tax hereby imposed beginning business, he shall estimate
the value of the stamps which he will furnish or supply between the date
of the issuance of his license and the thirty-first of December following.
The license tax of every such person who was licensed for only a part of
the next preceding license year shall be computed for the then current
license year on the basis of an estimate of the value of the stamps which
he will furnish or supply throughout the then current license year. Every
underestimate under either of the two preceding sections shall be subject
to correction by the Department of Taxation, whose duty it shall be to
assess such person with such additional taxes as may be found to be due
after the close of the license year on the basis of the true value of stamps
furnished or supplied.

§ 6. Each person subject to the tax herein imposed shall keep such
records and make such reports as may be required by the State Tax Com-
missioner. All such records shall be available for inspection by the Com-
missioner or his agent during regular business hours.

. The provisions of this act shall not apply to any coupon, or
other similar device, issued by a manufacturer or packer and attached
by him to his goods which he manufactures or packs and which is redeem-
able in merchandise by a manufacturer or packer, or their independent
redemption agent.

2. This act shall be in force on and after January 1, 1957.