CHAPTER 473

An Act to amend and reenact §§ 58-757.2, 58-757.9 and 58-757.27 of the
Code of Virginia, relating to taxes on tobacco products. rH 878]

Approved March 31, 1962

Be it enacted by the General Assembly of Virginia: oo
1. That §§ 58-757.2, 58-757.9 and 58-757.27 of the Code of Virginia be
amended and reenacted as follows:

§ 58-757.2. Affixing of stamps; records and reports of dealers.—
The taxes imposed by this article shall be paid by affixing stamps in the
manner and at the time herein set forth. In the case of cigars and like prod-
ucts, 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 cigar-
ettes, cause the same to have the requisite denominations and amount of
stamp or stamps to represent the tax affixed as stated herein. The stamp-
ing 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 continued with reasonable diligence by
the wholesale or retail dealer until all of the unstamped little cigars, che-
roots, stogies, cigars, or cigarettes, have been stamped; provided, that any
wholesale dealer engaged in interstate business * shall be permitted to set
aside such part of his stock as may be necessary for the conduct of such in-
terstate business without affixing the stamps required by this subdivision.
Said interstate stock shall be kept * entirely separate * and apart from
stamped stock in such a manner as to prevent the commingling of the in-
terstate stock with the 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 in-
spection 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
article, and hold all books, records, and memoranda pertaining to the pur-
chase and sale of such tobacco products enumerated and defined in this
article, 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 article, purchased through said wholesale dealer from without this
State on a drop shipment and consigned direct to the person, firm, cor-
poration or association of persons ordering such tobacco products from
without this State through such wholesale dealer. If, upon examination 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 un-
stamped tobaccos as enumerated and defined in this article, purchased by
him, the prima facie presumption shall arise that such tobacco 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.

§ 58-757.9. Sale of unstamped tobacco products by wholesale dealers.
—(a) A wholesaler as defined in § 58-757.10, and who is duly qualified as
such wholesaler under said section, may sell tobacco products enumera
herein without the Virginia revenue stamps affixed thereto, provided such
products are sold and shipped or delivered in interstate 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 Department, 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, contract 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 enu-
merated 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; provided, however, that any
such wholesaler with a place of business in a city located partly within
and partly without this State, or in a county adjoining such city, shall not
be required to obtain such receipt from a purchaser from such other state,
af such other state imposes a tobacco tax and if the tobacco tax in such
other state 1s at a higher rate than the tax imposed by the Commonwealth
of Virginia.

(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
the use or consumption by members of the armed services of the United
States, or when sold to the Veterans Canteen Service of the Veterans
Administration for resale to veterans of the armed services of the United
States who are hospitalized or domiciled in hospitals and homes of the
Veterans Administration, 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.
qualified wholesalers, without revenue stamps affixed thereto, when sold

(d) Tobacco products enumerated herein may be sold by such duly
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 prevent
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 chapter.

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

§ 58-757.27. Local taxes not prohibited; wse of dual die to evidence
payment of both a city tax and the State tax on cigarettes.—No provision
of this chapter 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.
The council of any city which levies a city cigarette tax and permits the
use of meter impressions to evidence its payment may authorize an officer
of the city to enter into an arrangement with the Department of Taxation
under which a tobacco wholesaler who so desires may use a dual die to
evidence the payment of both the city tax and the State tax, and the
Department of Taxation ts hereby authorized to enter into such an
arrangement. The procedure under such an arrangement shall be such as
may be agreed upon by and between the authorized city officer and the
Department of Taxation. |
2. An emergency exists and this act is in force from its passage.