CHAPTER 392

An Act to levy excise (sales and use) taxes on certain tobacco products,
to-wit, little cigars, cheroots, stogies, cigars, and cigarettes; to pro-
vide for the collection and distribution of such taxes and the admin-
istration of this act; and to prescribe penalties for violating this act.

(H 53]
Approved March 30, 1960

Be it enacted by the General Assembly of Virginia:
SUBDIVISION 1
SALES TAX

1. § 1. In addition to all other taxes now imposed by law, every person,
firm, corporation, or association, within this State, who sells or stores or
receives for the purpose of distribution to any person, firm, corporation,
or association within this State, little cigars, cheroots, stogies, cigars,
or cigarettes, either or all, shall pay to this State an excise tax as here-
inafter provided.

There is hereby levied an excise tax on articles containing tobacco
enumerated in this subdivision in the following amounts:

(1) Little cigars.—Upon cigars of all descriptions made of tobacco,
or any substitute therefor, and weighing not more than three pounds per
thousand, one cent for each ten cigars, or fractional part thereof.

(2) Cheroots, stogies, cigars, etc.—Upon cigars of all descriptions
made of tobacco, or any substitute therefor, retailing for three and one-
third cents each or less, one dollar per thousand.

(8) Cigars.—Upon cigars of all descriptions made of tobacco, or any
substitute therefor, retailing for more than three and one-third cents each
and not more than five cents each, two dollars per thousand.

(4) Cigars.—Upon cigars of all descriptions made of tobacco, or any
substitute therefor, retailing for more than five cents each and not exceed-
ing eight cents each, three dollars per thousand.

(5) Cigars.—Upon cigars of all descriptions made of tobacco, or any
substitute therefor, retailing for more than eight cents each and not
exceeding ten cents each, five dollars per thousand.

6) Cigars.—Upon cigars of all descriptions made of tobacco, or any
substitute therefor, retailing for more than ten cents and not exceeding
twenty cents each, ten dollars per thousand.

(7) Cigars.—Upon cigars of all descriptions made of tobacco, or any
substitute therefor, retailing for more than twenty cents each, thirteen
dollars and fifty cents per thousand.

_ (8) Cigarettes.—Upon all cigarettes made of tobacco, or any sub-
stitute therefor, one and one-half mills on each such cigarette.

Whenever in this act reference is made to any manufactured tobacco
products, manufactured or imported to sell at a certain price, as the basis
for computing the tax, it is intended to mean the ordinary, customary, or
usual price paid by the consumer for such tobacco products taxable under
this act. When the retail or selling price is referred to in this act as the
basis for computing the amount of stamps required on any article, it is
intended to mean the retail or selling price of the articles before adding
the amount of the tax. When any articles or commodities subject to tax
in this act are given as prizes or as premiums, etc., the tax shall be based
on the ordinary retail selling price of such articles.

The tax hereby levied shall not apply to free distribution of sample
cigarettes in packages containing five or fewer cigarettes; nor to any
package of cigarettes customarily donated free of charge by manufac-
turers of cigarettes to employees in factories where cigarettes are manu-
factured in this State, when such packages of cigarettes are not taxed by
the Federal government.

The tax herein levied shall be paid through the use of stamps herein
provided for. Stamps in denominations to the amount of the tax shall be
affixed to the box or other container from or in which tobacco products
taxed by this subdivision are normally sold at retail. The stamps shall be
affixed in such a manner that their removal will require continued appli-
cation of water or steam; and in case of cigars, and like manufac-
tured tobacco products, where sales are made from the original con-
tainer, the stamps shall be affixed to the box or container in such a
way that the stamps shall be torn in two or mutilated when such con-
tainers or boxes are opened for the sale of the tobacco products. In the
case of cigarettes, and like products, sold at retail in packages, the
required amount of stamps to cover the tax shall be affixed to each indi-
vidual package or container.

The Department of Taxation shall, by rules and regulations, provide
for the manner in which the taxes shall be paid on any unstamped tobacco
products as enumerated herein in the hands of wholesalers or retailers on
the effective date of this act.

None of the rules and regulations which the Department of Taxation
is authorized to promulgate under any provision of this act shall be
subject to Chapter 1.1 of Title 9 of the Code of Virginia, the short title
of which is “General Administrative Agencies Act”.

§ 2. The taxes imposed by this subdivision shall be paid by affixing
stamps in the manner and at the time herein set forth. In the case of
cigars and like products, the stamps shall be affixed to the box or
container in which or from which such products are normally sold at
retail. In the case of cigarettes and like products, the stamps shall be
affixed to each individual package, bag, box or can. Time allowed for
affixing stamps shall be as follows: Every wholesale or retail dealer in
this State shall immediately after receipt of any unstamped little cigars,
cheroots, stogies, cigars, or cigarettes, cause the same to have the requisite
denominations and amount of stamp or stamps to represent the tax
affixed as stated herein. The stamping of said little cigars, cheroots,
stogies, cigars, and cigarettes, shall actually begin within one hour after
receipt of said little cigars, cheroots, stogies, cigars, or cigarettes, in the
premises of the wholesale or retail dealer, and said stamping shall be con-
tinued with reasonable diligence by the wholesale or retail dealer until al
of the unstamped little cigars, cheroots, stogies, cigars, or cigarettes, have
been stamped; provided, that any wholesale dealer engaged in interstate
business who shall furnish surety bond in an amount and of tenor and
solvency satisfactory to the Department of Taxation shall be permitted
to set aside such a part of his stock as may be necessary for the conduct
of such interstate business without affixing the stamps required by this
subdivision. Said interstate stock shall be kept in an entirely separate
part of the building, separate and apart from stamped stock.

Every wholesale dealer shall at the time of shipping or delivering
any tobacco products as enumerated herein make a true duplicate invoice
of the same which shall show full and complete details of the sale or
delivery of the taxable article, and shall retain the same subject to the
use and inspection of the Department of Taxation or its duly authorized
agents for a period of three years. Wholesale and retail dealers shall also
keep a record of purchases of all tobacco products enumerated and defined
in this subdivision, and hold all books, records, and memoranda pertain-
ing to the purchase and sale of such tobacco products enumerated and
defined in this subdivision, open to the inspection of the Department of
Taxation or its duly authorized agents at any and all times.

Every wholesale dealer shall furnish to the Department of Taxation
a monthly report, between the first and tenth of each month for the pre-
ceding month, of all orders for tobacco products enumerated and defined in
this subdivision, purchased through said wholesale dealer from without
this State on a drop shipment and consigned direct to the person, firm,
corporation or association of persons ordering such tobacco products
from without this State through such wholesale dealer. If, upon examina-
tion of invoices of any wholesale or retail dealer, he is unable to furnish
evidence to the Department of Taxation of sufficient stamp purchases to
cover unstamped tobaccos as enumerated and defined in this subdivision,
purchased by him, the prima facie presumption shall arise that such to-
bacco products were sold without the proper stamps affixed thereto. Any
wholesaler or retailer who fails or refuses to comply with any or all the
above provisions, shall be guilty of a misdemeanor and upon conviction
shall be punished by a fine of not less than five hundred dollars, nor more
than one thousand dollars, or imprisonment in jail for a period of six
months, or both.

§ 3. Any retail dealer of tobacco products enumerated and defined
in this subdivision, purchasing, or receiving such commodities from with-
out the State, whether the same shall have been ordered or purchased
through a wholesaler in this State, or by drop shipment or otherwise,
shall within twelve hours of receipt of such tobacco products, mail by
registered mail a true duplicate invoice of all such purchases or receipts
to the Department of Taxation, said invoice carrying the name of the
person or firm from whom or through whom such purchases or shipments
of the tobacco products were so received, showing kinds and quantities.
Any retail dealer failing or refusing to furnish duplicate invoices, in both
the manner and time allowed, shall be guilty of a misdemeanor and upon
conviction shall be punished by a fine of not less than fifty dollars for
each offense, or imprisonment in jail for a period not exceeding sixty days,
or both.

§ 4. All common carriers, contract carriers, buses, and trucks trans-
porting tobacco products may be required under regulations to be pre-
scribed by the Department of Taxation to transmit to the Department of
Taxation a periodic statement of such consignments or deliveries of tobacco
products showing date, point of origin, point of delivery and to whom
delivered, and time of delivery, and all common carriers, buses and trucks
shall permit examination by the Department of Taxation, or its agents,
of their records relating to shipment or receipt of tobacco products. The
common carriers, buses and trucks shall permit the examination and in-
vestigation of their records of shipment or receipts relating to tobacco
products, when and wherever it is deemed advisable and necessary by the
Department of Taxation, or its agents, in the enforcement of this sub-
division. Inspectors and other duly authorized agents of the Department
of Taxation, on proper identification from and authorization by the De-
partment of Taxation, shall make such examination. Any person, firm,
corporation, or association of persons, who refuses to transmit to the De-
partment of Taxation the statement hereinabove provided for, or who
refuses to permit the examination of his records by the Department or its
duly authorized agents, shall be guilty of a misdemeanor and upon con-
viction shall be punished by a fine of not less than one hundred dollars,
nor more than five hundred dollars for each such offense.

§ 5. It shall be provided by regulations of the Department of Tax-
ation the methods of breaking packages, forms and kinds of containers
and methods of affixing stamps that shall be employed by persons, firms
or corporations subject to the tax imposed by this subdivision which will
make possible the enforcement of payment by inspection, and any person,
firm or corporation subject to this tax, engaging in or permitting such
practices as are prohibited by regulations of the Department of Taxation
or in any other practice which makes it difficult to enforce the provisions
of this subdivision by inspection, or if any person, firm or corporation,
agent or officer thereof, who shall upon demand of the Department of Tax-
ation, or any officer or agent of the Department of Taxation refuses to
allow full inspection of the premises or any part thereof, or who shall
hinder or in anywise delay or prevent such inspection when demand is
made therefor, or in any way interferes with any agent of the Department
of Taxation in the performance of his duties in enforcing this subdivision,
shall be deemed to be guilty of a misdemeanor and shall, upon conviction.
be fined not less than one hundred dollars, nor more than two hundred
dollars for each offense, or imprisonment in jail for a period not exceeding
ninety days, or both.

§ 6. It shall be the duty of every person, firm, corporation, or
association of persons, receiving, storing, selling or handling tobacco
products enumerated herein in any manner whatsoever, to keep and pre-
serve all invoices, books, papers, cancelled checks, or other memoranda
touching the purchase, sale, exchange or receipt of any and all tobacco
products enumerated herein for a period of three years. All such invoices,
books, papers, cancelled checks or other memoranda shall be subject to
audit and inspection by any duly authorized representative of the Depart-
ment of Taxation at any and all times. Any person, firm, corporation, or
association of persons who fails or refuses to keep and preserve the records
as herein required, or who upon request by a duly authorized agent of the
Department of Taxation fails or refuses to allow an audit or inspection of
records as hereinabove provided, shall be guilty of a misdemeanor and
shall upon conviction be punished by a fine of not less than fifty dollars.
nor more than two hundred dollars, or imprisonment in jail for a period
not to exceed ninety days for each offense.

§ 7. Each and every wholesaler qualifying as such with the Depart-
ment of Taxation shall be required to file a report between the first and
tenth of each month, covering the purchase or receipt by them of al]
tobacco products enumerated and defined herein, during the preceding
month. Said report shall give in detail the different kinds and quantities
of tobacco products so purchased or received by them during the preceding
month. Any wholesaler failing or refusing to file the above report in the
manner and time allowed, shall be guilty of a misdemeanor and upon con-
viction shall be fined not less than one hundred dollars, nor more than five
hundred dollars for each offense. ;

§ 8. The Department of Taxation is hereby authorized and directed
to have prepared and to sell stamps suitable for denoting the tax on all
articles enumerated herein. Any person, firm, corporation, or association
of persons, other than the Department of Taxation, who sells tobacco tax
stamps, not affixed to tobacco sold and delivered by them, whether the
said stamps be genuine or counterfeit, shall be guilty of a felony and
punishable as set out in section fourteen of this act. When wholesalers
have qualified as such with the Department of Taxation, as provided in
section ten of this act, and desire to purchase stamps as prescribed herein
for use on taxable tobaccos sold and delivered by them, the Department of
Taxation shall allow on such sales of tobacco tax stamps a discount of five
per cent.

§ 9. (a) <A wholesaler as defined in section ten of this act, and who
is duly qualified as such wholesaler under said section, may sell tobacco
products enumerated herein without the Virginia revenue stamps affixed
thereto, provided such products are sold and shipped or delivered in inter-
state commerce to a person outside this State, and such wholesaler shall
have on file, for a period of three years, subject to inspection by the De-
partment, a record of such sale, and also the original purchase order, and
a copy of the invoice therefor, and a receipt from a common carrier, con-
tract carrier, or post office showing shipment for delivery in such other
State, or, if delivered by such dealer to the purchaser at a point outside
of this State, a receipt showing such delivery in addition to the record,
original purchase order and copy of the invoice relating to such sale.

(b) Such duly qualified wholesaler may sell tobacco products enum-
erated herein without the Virginia revenue stamps affixed thereto, pro-
vided: (1) Such products are sold to a person who is engaged in business
as a dealer in such products in another state; (2) such products are pur-
chased exclusively for resale in such other state; and (3) such products
are at the time of sale properly stamped by the Virginia wholesaler with
revenue stamps authorized and issued by such other state for use upon
such tobacco products, and such wholesaler shall have on file, for a period
of three years, subject to inspection by the Department, a record of such
sale, the original purchase order, and copy of invoice therefor, a receipt
from such purchaser showing that such purchase was made exclusively
for resale in such other state, and a record showing the purchase and use
of such revenue stamps of such other state.

(c) Tobacco products enumerated herein may be sold by such duly
qualified wholesalers, without revenue stamps affixed thereto, when sold
to the United States or to any instrumentality thereof for resale to or for
use or consumption by members of the armed services of the United States.
provided the books and records, including original purchase orders and
copy of invoices showing such sales are kept on file for a period of three
years, subject to inspection by the Department.

(d) Tobacco products enumerated herein may be sold by such duly
qualified wholesalers, without revenue stamps affixed thereto, when sold
and delivered to ships regularly engaged in foreign commerce or coast-wise
shipping between points in this State and points outside of this State for
resale to or for use or consumption upon such ship or in foreign commerce.

(e) The Department is authorized to adopt rules and regulations
with respect to the enforcement of the provisions of this section, to pre-
vent any evasion of the tax herein imposed.

A failure to comply with any provision of this section with respect
to any sale of unstamped tobacco products shall subject the wholesaler to
the payment of the tax thereon imposed by this act.

Any person, including any firm, corporation, or association of persons,
who violates any of the provisions of this section shall be guilty of a
misdemeanor, and upon conviction shall be punished by a fine of not less
than one hundred dollars nor more than five hundred dollars, or by impris-
onment in jail for a period not to exceed six months, either or both.

§ 10. The phrase “wholesale dealer”, as used in this subdivision,
shall include persons, firms, or corporations who sell at wholesale only
any one or more of the articles taxed herein to licensed retail dealers for
the purpose of resale only, or who sell at wholesale to institutional, com-
mercial or industrial users. The phrase also includes chain store distribut-
ing places licensed as provided by §§ 58-304 through 58-339 of the Code
of Virginia.

The phrase “retail dealer’, shall include every person, firm or corpo-
ration other than a wholesale dealer, as defined in this section, who shall
sell or offer for sale any one or more of the articles taxed herein, irrespec-
tive of quantity or amount, or the number of sales; and all persons operat-
ing under a retail dealer’s license.

The word “stamps”, as used herein, means the stamp or stamps by
the use of which the tax levied under this subdivision is paid and shall be
designated Virginia revenue stamps. The Department of Taxation is
hereby authorized to provide for the use of any type of stamp which will
effectuate the purposes of this Act including but not limited to decal-
comania and metering devices.

The Department of Taxation shall design the form and kind of
stamps to be used and shall duly adopt and promulgate such form of
stamps. Such stamps so adopted and promulgated shall be known and
termed as “Virginia revenue stamp”, and in any information or indict-
ment, it shall be sufficient to describe the stamps as “Virginia revenue
stamps”. Provided, however, every wholesaler who desires to qualify as
such with the Department of Taxation shall make application to the
Department on blanks prescribed for this purpose, which shall be supplied
upon request. Said application blanks will require such information rela-
tive to the nature of business engaged in by said wholesaler, as the
Department deems necessary to the qualifying of said wholesaler, which
and when being received by the Department it believes said wholesaler to
be qualified, shall issue to said wholesaler a permit qualifying him as a
wholesaler, as defined in this subdivision and he shall be allowed the dis-
count on purchases of stamps as set out herein for wholesalers purchas-
ing stamps for their individual use. The Department of Taxation shall
not sell any stamps or allow any discount on any sale of stamps to any
wholesaler until said wholesaler shall have complied with all of the pro-
visions of this section. The Department of Taxation may at any time
revoke the permit issued to any wholesaler as hereinabove provided who
shall be guilty of violating any of the provisions of this act, or any of the
rules of the Department of Taxation adopted and promulgated under
authority of this subdivision, and refuse to sell any wholesaler any stamps
until such time as his permit shall be restored.

§ 11. Every wholesale dealer in this State shall before shipping,
delivering or sending out any one or more articles taxed herein, to any
dealer in this State or for sale in this State, cause the same to have the
requisite denominations and amount of stamp, or stamps, to represent the
tax affixed as stated herein, and every other wholesale dealer shall at the
time of shipping or delivering any one or more articles taxed herein make a
true duplicate invoice of the same, showing the date, amount and value of
each class of articles shipped or delivered and retain a duplicate thereof,
subject to the audit and inspection of the Department of Taxation, its
authorized agents and representatives, for three years. Wholesale dealers
in this State who ship, deliver, or send any one or more articles taxed
herein to the United States government, for sale or distribution to any
military, naval or marine reservation owned by the United States govern-
ment within this State, shall be required to carry out the provisions set
out in this subdivision for such sales or deliveries.

§ 12. Persons failing to properly affix the required stamps to any
little cigars, cheroots, stogies, cigars, or cigarettes, shall be required to
pay as part of the tax imposed hereunder, a penalty of not less than
twenty-five dollars, nor more than five hundred dollars, to be assessed and
collected by the Department of Taxation as other taxes are collected. And
each article or commodity not having proper stamps affixed thereto as
herein required shall be deemed a separate offense. Any little cigars,
cheroots, stogies, cigars, or cigarettes in the place of business of any
person required by the provisions of this subdivision to stamp the same
shall be prima facie evidence that they are intended for sale. The Depart-
ment of Taxation upon good cause shown may in its discretion remit a
part of the penalties prescribed above herein, but in no case shall it accept
less than the minimum penalty provided for each offense. Any person,
firm, corporation, or association of persons, who has been found guilty of
violating any of the provisions of this subdivision and who, after being
punished by fine, penalty, assessment or imprisonment, shall be guilty of
a@ second or subsequent violation of this subdivision shall upon being found
guilty of such second offense, have his or its permit or revenue license
revoked by the Department of Taxation, and no further license or permit
shall be issued or granted to such person, firm, corporation, or association
of persons for a period of one year from the date the license or permit
shall have been revoked.

§ 18. Each and every person, firm, corporation, or association of
persons transporting or distributing in any manner whatsoever, any
tobacco products as enumerated and defined herein within this State who
has not a permit issued under this act, shall, before transporting or dis-
tributing any of such tobacco products as enumerated and defined herein,
secure a permit from the Department of Taxation. The Department shall
before issuing said permit ascertain from the applicant the nature of his
business and the names of each county and city to which said applicant
desires to transport or distribute tobacco products as heretofore defined.
The permit provided herein shall be conspicuously displayed on the
vehicle for which it is issued. Failure to properly display the permit as
hereinbefore required shall be deemed a violation of this section. Any
person, firm, corporation, or association of persons having been issued a
permit who engages in any practices which are deemed by the Depart-
ment of Taxation to be injurious to the collection of the tax provided
herein, may have their permit revoked by the Department of Taxation
and no further permit shall be issued for six months and not then unless
the Department is satisfied it is advisable. Duplicate permit cards will be
issued to replace permits lost or damaged upon application and the pay-
ment of a fee of one dollar. Any person, firm, corporation, or association
of persons found transporting or distributing any tobacco products defined
herein, without first securing a permit as provided above, shall be guilty
of a misdemeanor and upon conviction shall be punished by a fine of not
more than one thousand dollars for each such offense.

§ 14. Whoever removes or otherwise prepares any Virginia revenue
stamp with intent to use, or cause the same to be used, after it has already
been used, or buys, sells, offers for sale, or gives away any such washed
or removed or restored stamps to any person for using or who used the
same, or has in his possession any washed or restored or removed or
altered stamp which has been removed from the article to which it has
been previously affixed, or whoever for the purpose of indicating the pay-
ment of any tax hereunder re-uses any stamp which has heretofore been
used for the purpose of paying any tax provided in this subdivision, or
whoever except the Department of Taxation sells any Virginia revenue
stamps not affixed to taxable tobaccos as provided herein, 1s guilty of a
felony and, upon conviction, shall be punished by imprisonment in the
penitentiary for not less than a year, nor more than five years, and in
addition may be fined not less than one thousand dollars, nor more than
five thousand dollars. Whoever manufactures, buys, sells, offers for sale, or
has in his or its possession any reproduction or counterfeit of the Virginia
revenue stamps provided for in this subdivision, is guilty of a felony and,
upon conviction, shall be punished by imprisonment in the penitentiary
for not less than a year, nor more than ten years, and in addition, may be
aa not less than two thousand dollars nor more than ten thousand
ollars.

§ 15. The Department of Taxation shall administer and enforce the
taxes imposed by this subdivision. It shall have the power to enter upon
the premises of any taxpayer and to examine, or cause to be examined, by
any agent or representative designated by it for that purpose, any books,
papers, records, or memoranda, etc., bearing upon the amount of taxes
payable, and to secure other information directly or indirectly concerned
in the enforcement of this subdivision.

. Any person, firm, corporation, or association of persons, who
shall re-use or refill with any tobacco products enumerated herein, any
box, package or container from which tobacco products theretofore taxpaid
have been removed, shall be guilty of a misdemeanor and upon conviction
shall be fined not less than one hundred dollars, nor more than five hun-
dred dollars or imprisoned not to exceed six months, either or both, at the
discretion of the court.

§ 17. It shall be unlawful for any person, firm or corporation, ex-
cept as otherwise provided by law, to sell, purchase, transport, receive or
possess any of the articles taxed under the provisions of this subdivision,
unless the same has been stamped in the manner required by law, for the
purpose of evading the payment of the taxes on such products. Any person,
firm or corporation violating the provisions of this section shall be guilty
of a misdemeanor and upon conviction shall be fined not less than twenty-
five dollars, to which a jail sentence of not less than thirty nor more than
sixty days may be added.

If a person, firm or corporation, who is not a regularly licensed
dealer in tobacco products, shall have in his possession within the State
more than thirty packages of unstamped cigarettes or more than one box
of unstamped cigars, such possession shall be presumed to be for the pur-
pose of evading the payment of the taxes due thereon.

SUBDIVISION 2
USE TAX

§ 18. The following words, terms and phrases when used in this
subdivision shall have the meaning ascribed to them in this section, ex-
cept where the context indicates a different meaning: (1) The term
“person” includes any individual, firm, company, partnership, association,
corporation, receiver or trustee, or any other group or combination acting
as a unit, and the plural as well as the singular number. (2) The term
“department” means the Department of Taxation. (3) The term “storage”
means and includes any keeping or retention in this State for any purpose
except sale in the regular course of business or subsequent use solely
outside this State of the commodities subject to the provisions of this
subdivision. (4) The term “use” means and includes the exercise of any
right or power over the commodities subject to the provisions of this sub-
division, incident to the ownership of those commodities or by any trans-
action where possession is given, except that it shall not include the sale
of those commodities in the regular course of business. (5) The term “in
this State’ means within the exterior limits of the Commonwealth of
Virginia, and includes all territory within such limits owned by or ceded
to the United States of America. (6) The term “tobacco product” includes
little cigars, cheroots, stogies, cigars, and cigarettes. (7) The term “retail
sale” or “sale at retail” shall include all sales except sales by wholesalers
to licensed retail dealers or other wholesalers for resale.

§ 19. An excise tax is hereby imposed on the storage, use or other
consumption in this State of tobacco products purchased at retail in an
amount equal to that set out in section one of subdivision one of this act.
Every person storing, using or otherwise consuming in this State tobacco
products purchased at retail shall be liable for the tax imposed by this
subdivision, and the liability shall not be extinguished until the tax has
been paid to this State; provided, however, if said tobacco products have
attached thereto the stamps provided in said subdivision one of this act,
or if said tax imposed by said subdivision one of this act, has been paid by
the seller of such tobacco products, then the tax imposed by this subdivision
shall not be due.

§ 20. Every person owning or having in his possession or custody
tobacco products, the storage, use or other consumption of which is subject
to the tax imposed by this subdivision, shall on or before the tenth day of
the month following file with the Department a return for the preceding
month in such form as may be prescribed by the Department showing the
tobacco products purchased by such person, and such other information
as the Department may deem necessary for the proper administration of
this subdivision. The return shall be accompanied by a remittance of the
amount of tax herein imposed.

§ 21. In case any person subject to the tax imposed by this subdi-
vision fails to make such a return, or makes an incorrect return, the De-
partment, from the best information available to it, shall assess the amount
of tax due from such person and mail notice thereof to the taxpayer. Col-
lection of such assessment may be enforced by legal process.

§ 22. It shall be the duty of every person storing, using or other-
wise consuming in this State tobacco products subject to the provisions
of this subdivision to keep and preserve all invoices, books, papers, can-
celled checks, or other memoranda touching the purchase, sale, exchange,
receipt, ownership, storage, use or other consumption of such tobacco
product for a period of three years. All such invoices, books, papers, can-
celled checks, or other memoranda shall be subject to audit and inspection
by any duly authorized representative of the Department at any and all
reasonable times. Any person who fails or refuses to keep and preserve
the records as herein required, or who upon request by a duly authorized
agent of the Department fails or refuses to allow an audit or inspection
of the records as herein provided, shall be guilty of a misdemeanor and
upon conviction be punished accordingly.

SUBDIVISION 3
GENERAL PROVISIONS

§ 23. Erroneous assessments under this act may be corrected and
refunds ordered by the Department of Taxation, and the provisions of
§§ 58-1118 through 58-1121 of the Code of Virginia shall be applicable
thereto. Aggrieved taxpayers may also apply to the appropriate court
for the correction of any erroneous assessments under this act, and
§§ 58-1130 through 58-1132 and §§ 58-1134 through 58-1139, of the Code
of Virginia shall be applicable thereto.

§ 2 All revenue collected under this act by the Department of
Taxation shall be promptly paid into the general fund of the State
treasury.

§ 25. The cost of administering this act shall be paid out of the
general fund of the State treasury, and there is hereby appropriated to
the Department of Taxation, out of the general fund of the State treasury,
for such purpose, for each year of the biennium beginning July first, nine-
teen hundred sixty, a sum sufficient.

§ 26. Unless adequate office space is provided in a State-owned
building for the administration of this act, the Department of Taxation is
hereby authorized to rent quarters for the purpose and the cost thereof
shall be paid as a part of the cost of administering this act.

2 No provision of this act shall be construed to deprive counties,
cities and towns of the right to levy taxes upon the sale or use of tobacco
or tobacco products.

§ 28. This act shall be in force for all purposes from August first,
nineteen hundred and sixty, until June thirty, nineteen hundred sixty-two;
provided, however, that all necessary preparations for administering and
complying with this act shall be made before that date, and §§ twenty-five
and twenty-six of this act shall be in force from July one, nineteen hundred
sixty, until June thirty, nineteen hundred sixty-two.