CHAPTER 403

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

fH 143]
Approved March 30, 1960

Be it enacted by the General Assembly of Virginia:

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

§ 4-40. (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 of one and two-thirds mills per ounce
per bottle. Such tax shall be paid by the person who manufactures the beer.

(a-1) In lieu of the tax imposed by paragraph (a) of this section,
there is hereby levied for the period beginning July one, nineteen hundred
sixty and ending June thirty, nineteen hundred sixty-two, on all beer man-
ufactured in Virginia an excise tax at the rate of four dollars 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 14% 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 21% cents per bottle; and on such beer
an bottles of more than twelve ounces each the tax shall be at a rate of
2-1/12 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 previously 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 pre-
viously 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.

(b-1) In lieu of the tax imposed by paragraph (b) of this section,
there is hereby levied for the period beginning July one, nineteen hundred
sixty and ending June thirty, nineteen hundred sixty-two, on all beer
bottled in Virginia and on all beer sold in Virginia, an excise tax at the
rate of four dollars 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
1% 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 21% cents per
bottle; and on such beer in bottles of more than twelve ounces each, the
tax shall be at the rate of two and 1/12 mills per ounce per bottle. The tax
herein levied shall be paid by the respective bottlers and wholesalers of
the beer, if not previously 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
af on beer bottled in Virginia there shall have been paid by the manufac-
turer 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 author-
izing 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 agree-
ment 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 thou-
sand 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 preced-
ing month, the amount of tax, if any, for which such person is liable
under the provisions of this section, and containing such other informa-
tion 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 pro-
visions of this chapter on all such beer so manufactured 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
reports shall not be applicable to any person licensed hereunder to sell
beer at retail who purchased beer from manufacturers, bottlers or whole-
salers licensed in this State and from no one else; provided, such person
shall have duly filed with the State Tax Commissioner the contract or
agreement 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
resale 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 com-
merce 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 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 provided
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 § 4-41, but such sections
shall be read together.

(j) In order that the increases in the rates of the excise taxes levied
by this section, as hereby amended, may be made uniformly effective on
July first, nineteen hundred and sixty, the following provisions are hereby
enacted:

(1) Every wholesaler and retailer of beer in this State shall file with
the State Tax Commissioner after July first, nineteen hundred and sixty,
and before July fifteenth, nineteen hundred and sixty, a report under oath
on forms which shall be prescribed by the State Tax Commissioner which
report shall state in detail such wholesaler’s or retailer’s inventory of beer
on which the excise tax 1s increased by this section, as hereby amended,
on hand and in transit to him as of the beginning of July first, nineteen
hundred and sixty; and at the time of filing such report he shall pay to the
State Tax Commissioner the difference between the excise taxes which
have been already paid this State on such beer and the excise taxes at the
rates levied by this section, as hereby amended. Any wholesaler or retailer
failing or refusing to file such report and to pay such taxes within the
time prescribed hereby, shall be guilty of a misdemeanor, and on convic-
tion thereof, shall be punished accordingly; and, in addition, the State Tax
Commissioner shall proceed to collect such taxes by legal process.

(2) Every manufacturer and bottler of beer in this State and every
manufacturer, bottler and wholesaler of beer without this State, to whom
or on whose account any official crown or lid tax certificate has been at any
time issued before July first, nineteen hundred and sixty, or who has
purchased or acquired at any time before July first, nineteen hundred and
sixty, any tax stamps, shall file with the State Tax Commissioner after
July first, nineteen hundred and sixty, and before July fifteenth, nineteen
hundred and sixty, a report under oath on forms which shall be prescribed
by the State Tax Commissioner which report shall give in detail the
number and description of each class of official crowns, lids and tax
stamps for use on beer on which the excise tax 1s increased by this section,
as hereby amended, which such manufacturer, bottler or wholesaler may
have on hand or in transit to him as of the beginning of July first, nine-
teen hundred and sixty, and whether such official crowns, lids and tax
stamps be attached or unattached to containers; and at the time of filing
such report he shall pay to the State Tax Commissioner the difference
between the excise taxes which have been already paid this State on
account of such official crowns, lids and tax stamps and the excise taxes
at the rates levied by this section, as hereby amended. Any such manu-
facturer or bottler in this State failing or refusing to file such report and
to pay such taxes within the time prescribed hereby, shall be guilty of a
misdemeanor, and on conviction thereof, shall be punished accordingly;
and in addition, the State Tax Commissioner shall proceed to collect such
taxes by legal process. Any such manufacturer, bottler or wholesaler with-
out this State failing or refusing to file such report and to pay such taxes
within the time prescribed hereby, shall not be issued any official crown or
lid tax certificate or permitted to purchase any tax stamps so long as such
manufacturer, bottler or wholesaler may be in default, as aforesaid.

(k) This section, as hereby amended, shall be in force on and after
July first, nineteen hundred and sixty.

§ 4-108. (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 bever-
ages 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.

(a-1) In lieu of the tax imposed by paragraph (a) of this section,
there 1s hereby levied for the period beginning July one, nineteen hundred
sixty and ending June thirty, nineteen hundred sixty-two, on all beverages
manufactured in Virginia an excise tax at the rate of four dollars 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
an bottles of not more than seven ounces each the tax shall be 1% 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 214 cents per
bottle; and on such beverages in bottles of more than twelve ounces each,
the tax shall be at the rate of two and 1/12 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
provided 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 additional excise taxes which may be due on such beverages in bottled
orm.

(b-1) In lieu of the tax imposed by paragraph (b) of this section,
there is hereby levied for the period beginning July one, nineteen hundred
sixty and ending June thirty, nineteen hundred sixty-two, on all bever-
ages bottled in Virginia and on all beverages sold in Virginia, an excise
tax at the rate of four dollars 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 17% cents per bottle, and on such beverages
an bottles of more than seven ounces each but not more than twelve ounces
each the tax shall be 21% cents per bottle and on such beverages in
bottles of more than twelve ounces each, the tax shall be at the rate of two
and 1/12 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 provided in this chapter shall have
been previously levied and paid thereon in full; but if on beverages bottled
an Virginia there shall have been paid by the manufacturer the excise
tax herein levied, such bottler shall pay all additional 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 for sale 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 bever-
ages 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 thou-
sand dollars. The violation of the terms of any such contract or agreement
between any such retailer and the Commissioner by the purchase by such
retailer of any beverages for resale from any one other than a manufac-
turer, 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 bever-
ages 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 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 subsection 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 agreement men-
tioned 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 whole-
saler 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 geo-
graphical confines of Virginia for resale on such military or naval reserva-
tion, 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 Com-
missioner 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.

(g) In order that the increases in the rates of the excise taxes levied
by this section, as hereby amended, may be made uniformly effective on
July first, nineteen hundred and sixty, the following provisions are hereby
enacted:

(1) Every wholesaler and retailer of beverages in this State shall file
with the State Tax Commissioner after July first, nineteen hundred and
sixty and before July fifteenth, nineteen hundred and sixty, a report under
oath on forms which shall be prescribed by the State Tax Commissioner
which report shall state in detail such wholesaler’s or retailer's inventory
of beverages on which the excise tax 1s increased by this section, as hereby
amended, on hand and in transit to him as of the beginning of July first,
nineteen hundred and sixty; and at the time of filing such report he shall
pay to the State Tax Commissioner the difference between the excise taxes
which have been already paid this State on such beverages and the excise
taxes at the rates levied by this section, as hereby amended. Any such
wholesaler or retailer failing or refusing to file such report and to pay
such taxes within the time prescribed hereby, shall be guilty of a misde-
meanor, and on conviction thereof, shall be punished accordingly; and, in
addition, the State Tax Commissioner shall proceed to collect such taxes
by legal process.

(2) Every manufacturer and bottler of beverages in this State and
every manufacturer, bottler and wholesaler of beverages without this
State, to whom or on whose account any official crown or lid tax certifi-
cate has been at any time issued before July first, nineteen hundred and
sixty, or who has purchased or acquired at any time before July first, nine-
teen hundred and sixty, any tax stamps, shall file with the State Tax
Commissioner after July first, nineteen hundred and sixty and before
July fifteenth, nineteen hundred and sixty, a report under oath on forms
which shall be prescribed by the State Tax Commissioner which report
shall give in detail the number and description of each class of official
crowns, lids and tax stamps for use on beverages on which the excise tax
is increased by this section, as hereby amended, which such manufacturer,
bottler or wholesaler, may have on hand or in transit to him as of the
beginning of July first, nineteen hundred and sixty, and whether such
official crowns, lids and tax stamps be attached or unattached to con-
tainers; and at the time of filing such report he shall pay to the State
Tax Commissioner the difference between the excise taxes which have been
already paid this State on account of such official crowns, lids and tax
stamps and the excise taxes at the rates levied by this section, as hereby
amended. Any such manufacturer or bottler in this State failing or refus-
ing to file such report and to pay such taxes within the time prescribed
hereby, shall be guilty of a misdemeanor, and on conviction thereof, shall
be punished accordingly; and, in addition, the State Tax Commissioner
shall proceed to collect such taxes by legal process. Any such manufac-
turer, bottler or wholesaler without this State failing or refusing to file
such report and to pay such taxes within the time prescribed hereby, shall
not be issued any official crown or lid tax certificate or permitted to pur-
chase any tax stamps so long as such manufacturer, bottler or wholesaler
may be in default, as aforesaid.

(h) This section, as hereby amended, shall be in force on and after
July first, nineteen hundred and sixty.