CHAPTER 397

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.

[H 187]
Approved March 31, 1964

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 * siz 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 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- * six, on all beer
manufactured in Virginia an excise tax at the rate of * six 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 one and seven-
eighths 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
and one-half cents per bottle; and on such beer in bottles of more than
twelve ounces each the tax shall be at a rate of two and one-twelfth mills
per ounce per bottle. Such tax shall be paid by the person who manufac-
tures 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 * siz 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 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 tax
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- * six, on all beer
bottled in Virginia and on all beer sold in Virginia, an excise tax at the
rate of * six 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 one and seven-eighths 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 and one-half 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
one-twelfth 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 tax
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 preceding month, the amount of tax, if any, for which such person is
liable under the provisions of this section, and containing such other infor-
mation 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 agai
him under the provisions of this chapter on all such beer so manufactured
or gord 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 ship
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 satisfacto
to the State Tax Commissioner be submitted to him in writing in ea
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) This section, as hereby amended, shall be in force on and after
July first, nineteen hundred and sixty * -four.

§ 4-108. (a) Tax on beverages manufactured.—There is hereby
levied on all beverages manufactured in Virginia an excise tax at the rate
of * six 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 gal-
lons, 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 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 is hereby levied for the period beginning July one, nineteen hundred
sixty and ending June thirty, nineteen hundred sixty- * siz, on all bever-
ages manufactured in Virginia an excise tax at the rate of * six 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
one and seven-eighths 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 and one-half 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 one-twelfth 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 * siz 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 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 addi-
tional 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- * siz, on all bever-
ages bottled in Virginia and on all beverages sold in Virginia, an excise
tax at the rate of * siz dollars per barrel of thirty-one gallons, and a tax
at the same rate on such beverages in containers of more or less
thirty-one gallons, but on such beverages in bottles of not more than
seven ounces each the tax shall be one and seven-eighths 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 and one-half 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 one-twelfth 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 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 beverages
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 thousand
dollars. The violation of the terms of any such contract or agreement be-
tween any such retailer and the Commissioner by the purchase by such re-
tailer 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 bev-
erages in Virginia shall file with the State Tax Commissioner a report
under oath on forms which shall be prescribed by the Commissioner show-
ing 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 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 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 Dis-
trict 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) This section, as hereby amended, shall be in force on and after
July first, nineteen hundred and sixty * -fouwr.