CHAPTER 456
An Act to amend and reenact § 59-10 of the Code of Virginia, as amended,
relating to definitions of unfair sales, so as to provide that State and
local sales taxes shall constitute cost to the wholesaler. CH 308]

Approved March 31, 1962

Be it enacted by the General Assembly of Virginia:

1. That § 59-10 of the Code of Virginia, as amended, be amended and
reenacted as follows:

§ 59-10. When used in this chapter, unless otherwise stated and
unless the context or subject matter clearly indicates otherwise:

(1) “Merchandise” shall mean any tangible personal property the
subject of commerce.

(2) “Cost to the retailer’ shall mean the invoice cost of the mer-
chandise to the retailer or the replacement cost of the merchandise to the
retailer within thirty days prior to the date of sale, in the quantity last
purchased, whichever is lower; less all trade discounts except customary
discounts for cash; to which shall be added (a) freight charges not other-
wise included in the cost of the merchandise, (b) cartage to retail outlet
if done or paid for by the retailer, which cartage cost shall be deemed to
be no more than the lowest published common carrier rate available for
such merchandise and in the absence of such published rate such cartage
cost shall be deemed to be not less than three-fourths of one per centum of
the cost of the merchandise to the retailer as herein defined, unless the
retailer claims and proves a lower cartage cost, and ‘(c) a mark-up to
cover in part the cost of doing business, which mark-up in the absence of
proof of a lesser cost, shall be not less than six per centum of the total
cost at retail outlet.

(3) “Cost to the wholesaler” shall mean the invoice cost of the mer-
chandise to the wholesaler or the replacement cost of the merchandise to
the wholesaler within thirty days prior to date of sale, in the quantity
last purchased, whichever is lower; less all trade discounts except cus-
tomary discounts for cash; to which shall be added (a) State and local
sales taxes paid by the wholesaler with respect to such merchandise, (b)
freight charges not otherwise included in the cost of the merchandise, (c)
cartage to the retail outlet if done or paid for by the wholesaler, which
cartage cost shall be deemed to be no more than the lowest published
common carrier rate available for such merchandise and in the absence
of such published rate such cartage cost shall be deemed to be not less
than three-fourths of one per centum of the cost of the merchandise to
the wholesaler as herein defined, unless said wholesaler claims and proves
a lower cartage cost, and (d) a mark-up to cover in part the cost of doing
business, which mark-up, in the absence of proof of a lower cost, shall be
not less than two per centum of the total cost of the merchandise at whole-
sale warehouse or outlet.

(4) “Cost to the retailer’ and “‘cost to the wholesaler” as defined in
subsections (2) and (3) shall mean bona fide costs.

(5) “Sell at retail’, “sales at retail’ and “retail sale” shall mean and
include any transfer for a valuable consideration, made in the ordinary
course of trade or in the usual prosecution of the seller’s business of title
to merchandise to the purchaser for consumption or use other than resale
or further processing or manufacturing. The above terms shall include
any transfer of such property where title is retained by the seller as
security for the payment of such purchase price.

(6) “Sell at wholesale’, ‘‘sales at wholesale’ and “wholesale sales”
shall mean and include any transfer for a valuable consideration made in
the ordinary course of trade or the usual prosecution of the seller’s busi-
ness, of title to merchandise to the purchaser for purposes of resale or
further processing or manufacturing. The above terms shall include any
such transfer of property where title is retained by the seller as security
for the payment of the purchase price.

(7) “Retailer” shall mean and include every person, partnership.
corporation or association engaged in the business of making sales at
retail within the State; provided that, in the case of a person, partner.
ship, corporation or association engaged in the business of making sales
both at retail and at wholesale such term shall be applied only to the retai
portion of such business.

(8) “Wholesaler” shall mean and include every person, partnership
corporation or association engaged in the business of making sales at
wholesale within the State; provided that, in the case of a person, part-
nership, corporation or association engaged in the business of making
sales both at wholesale and at retail, such terms shall be applied only tc
the wholesale portion of such business.