CHAPTER 182

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 3.2 beverages.
[H 150]

Approved March 6, 1962

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-*four, on all beer
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 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 7/8 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 214 cents per bottle; and
on such beer in bottles of more than twelve ounces each the tax shall be at
arate 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 previously 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-*four, 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 7/8
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 214 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 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.

(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
authorizing 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 agreement 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
-over the tax liability of such corporation, but in no event to be less than
one thousand 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 preceding month, the amount of tax, if any, for which such person is
liable under the provisions of this section, and containing such other in-
formation 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 provisions 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 re-
ports shall not be applicable to any person licensed hereunder to sell beer
at retail who purchased beer from manufacturers, bottlers or wholesalers
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
commerce between the United States and any of its possessions outside of
the several states and the District of Columbia, provided evidence satis-
factory 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 is increased by this section, as hereby amended, on
hand and in transit to him as of the beginning of July first, nineteen hun-
dred 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 conviction
thereof, shall be punished accordingly; and, in addition, the State Tax Com-
missioner 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
vy the State Tax Commissioner which report shall give in detail the number
and description of each class of official crowns, lids and tax stamp for use
on beer 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 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 manufacturer 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 without this State failing or re-
fusing 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 per-
mitted 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 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. Such
aX shall be paid by the person who manufactures the beverages.
| (a-1) In lieu of the tax imposed by paragraph (a) of this section,
here is hereby levied for the period beginning July one, nineteen hundred
ixty and ending June thirty, nineteen hundred sixty-*four, on all bever-
ages 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 bever-
ages 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 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 shail
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 manu-
factures 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 pre-
viously 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 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-*four, 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 1% 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 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. 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 manu-
facturer 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 agree-
ment 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 beverages on dining cars, buffet cars, club cars or boats
may in lieu of filing such a contract or agreement, file with the Commis-
sioner 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 thousand dollars. The violation of the terms of any
such contract or agreement between any such retailer and the Commis-
sioner by the purchase by such retailer of any beverages for resale from
any one other than a manufacturer, 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 beverages in Virginia shall file with the State Tax Commissioner
a report under oath on forms which shall be prescribed by the Com-
missioner 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 dur-
ing the preceding month, unless such taxes have been previously paid.
The provisions of this subsection as to the filing of such monthly re-
ports 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 mentioned 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 re-
servation, 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 reser-
vation 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
lax Commissioner be submitted to him in writing in each case that
uch beverages were so shipped.

_ , (£) Disposition of moneys collected.—All monevs collected by the
state Tax Commissioner under the provisions of this chapter shall be
romptly paid into the general fund of the State treasury.

. (g) In order that the increases in the rates of the excise taxes
vied by this section, as hereby amended, may be made uniformly effective

n July first, nineteen hundred and sixty, the following provisions are
ereby 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 Com-
missioner which report shall state in detail such wholesaler’s or retailer’s
inventory of beverages on which the excise tax is 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 pre-
scribed hereby, shall be guilty of a misdemeanor, and on conviction there-
of, shall be punished accordingly; and, in addition, the State Tax Com-
missioner 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 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 hun-
dred and sixty, any tax stamp, 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 de-
tail 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 whole-
saler, 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 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 ac-
count 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 mis-
demeanor, 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 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 purchase any tax stamps so long as such manu-
facturer, bottler or wholesaler mav be in default, as aforesaid.

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