CHAPTER 393

An Act to amend the Code of Virginia by adding a section numbered
4-15.1, to levy a State tax upon certain alcoholic beverages, providing
for the collection of such tax and the payment thereof into the
State treasury.

[H 54]

Approved March 30, 1960

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a section numbered
4-15.1 as follows:

§ 4-15.1. (a) There is hereby levied a State tax (1) upon all alco-
holic beverages sold either by or through the Virginia Alcoholic Beverage
Control Board, and (2) upon all other wine sold to persons licensed under
the provisions of this chapter to sell such wine at retail, subject to the
provisions hereafter in this section contained. The State tax hereby levied
shall be collected by the Board as to each sale of alcoholic beverages made
either by or through the Board from the purchaser of such alcoholic
beverages at the time of or prior to such sale; and the State tax hereby
levied shall be collected by the Board as to each sale of wine made by a
wholesale wine distributor to a retail licensee from the person making
such sale. In establishing the prices for items sold by it, the Board shall
add the amount of the tax hereby levied to the price of each package of
alcoholic beverages; provided, however, that the final price for each pack-
age may be established so as to be divisible by five. As to sales by or
through the Board, the tax provided for by this section shall be computed
by the Board on all net sales for each quarter by dividing the total net
sales for the quarter by 1.10 and multiplying the result by ten per centum.

b) On all wine sold to retail licensees, the State tax imposed hereby
shall be ten per centum of the price charged such retail licensees; on all
wine sold by the Board to persons other than retail licensees, the State
tax shall be ten per centum of the price charged for such wine.

(c) On all other alcoholic beverages sold by or through the Board,
the State tax shall be ten per centum of the price charged by the Board.

(d) To enable the Board to collect the State tax hereby levied from
wholesale wine distributors, such distributors shall make such reports in
such manner and at such times as the Board may from time to time
require and shall pay the State tax hereby levied to the Board at or prior
to each sale of wine to a retail licensee or at such other time or times as
the Board shall require.

(e) The amount of tax collected under this section during each
quarter shall, within fifty days after the close of such quarter, be certified
to the Comptroller by the Board and shall be transferred by him from
the special fund described in § 4-28 of the Code of Virginia to the general
fund of the State treasury.

(f) The provisions of this section shall not apply to (1) sales of wine
to wholesale wine distributors for resale to retail licensees, but the provi-
sions of this section shall apply to such resale, (2) sales, other than by or
through Government stores, of alcoholic beverages for manufacturing and
industrial purposes, or either of such purposes, (3) sales, other than by
or through Government stores, of alcohol for hospital and laboratory pur-
poses, or either of such purposes, (4) alcoholic beverages shipped from
Virginia to points outside Virginia for resale outside Virginia, (5) sales
to any instrumentality of the federal government, and (6) beer.

(¢g) 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 chapter. The term “retail licensee’, as used in this
section, means one who is licensed under this act to sell wine at retail.
As used in this section, the term “net sales” shall mean gross sales less
refunds to customers. The definitions contained in this chapter shall apply
to the words and terms used in this section.

(h) Provided, however, that the counties, cities and towns shall in
no event receive from the profits from the sale of alcoholic beverages less
cash revenue than was received by such counties, cities and towns for the
year ending June thirtieth, nineteen hundred sixty.

2. This section shall be in force from July one, nineteen hundred and
sixty, until June thirty, nineteen hundred sixty-two.