CHAPTER 357

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

[S 229}
Approved April 1, 1966

Be it enacted by the General Assembly of Virginia:

1. That §§ 4-40 and 4-108, as amended, of the Code of Virginia 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 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 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 manu-
factures 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 hun-
dred sixty and ending * August thirty-one, 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
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 six dollars per barrel of thirty-one gallons and a tax at

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 pre-
viously 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 hun-
dred sixty and ending * August thirty-one, 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 sub-

on.

(d) Contract with State Tax Commissioner.—No retail license au-
thorizing 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 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 Commissioner shall
promptly notify the board of each such bond filed, each such contract
or agreement entered into, and each amendment, alteration or cancellation

ereof.

(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 information 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
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 or aircraft.—The excise tax herein pro-
vided 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 con-
fines 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 constitutional grounds from the excise tax levied by this
section, or on any beer sold and delivered to foreign naval ships or on
any beer sold and delivered to ships or aircraft 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, pro-
vided 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) Manufacturers, bottlers and wholesalers who may have on hand
or in transit as of the close of business August 81, 1966, any Virginia
taxpaid crowns or lids, or any Virginia tax stamps designed for beer in
bottles, whether attached or unattached to containers, on which is in-
dicated that the higher rate of tax in force prior to September 1, 1966 was
patd to the State, may apply to the Department of Taxation, on forms
prescribed and furnished by it, for the issuance of tax credit certificates
to cover the difference between the higher rate of tax thus paid and the
lower rate of tax effective September 1, 1966, after taking into considera-
tion the allowance for losses as set out in § 4-48. Every such application
for a tax credit certificate shall be filed within ten days after September
1, 1966; tt shall state the pertinent facts existing at the close of busine:
August 81, 1966, and it shall be verified by the affidavit of the applican
If the Department of Taxation is satisfied that the application is in prope
form and substance, it shall issue a tax credit certificate to the applicar
in the correct amount as soon as practicable after the receipt of the aj
plication. Additional evidence may be required in any doubtful cas

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

§ 4-108. (a) Tax on beverages manufactured.—There is heret
levied on all beverages manufactured in Virginia an excise tax at tl
rate of six dollars per barrel of thirty-one gallons, and a tax at the sar
rate on such beverages in containers of more or less than thirty-or
gallons, but on such beverages in bottles of not more than seven ounce
each the tax shall be one and one-half cents per bottle and on suc
beverages in bottles of more than seven ounces each but not more tha
twelve ounces each the tax shall be two cents per bottle; and on suc
beverages in bottles of more than twelve ounces each, the tax shall be at tl
rate of one and two-thirds mills per ounce per bottle. Such tax shall |
paid by the person who manufactures the beverages.

(a-1) In lieu of the tax imposed by paragraph (a) of this sectio.
there is hereby levied for the period beginning July one, nineteen hundre
sixty and ending * August thirty- * one, nineteen hundred sixty- * st
on all beverages manufactured in Virginia an excise tax at the rate «
six dollars per barrel of thirty-one gallons, and a tax at the same rate c
such beverages in containers of more or less than thirty-one gallons, bi
on such beverages in bottles of not more than seven ounces each the ta
shall be one and seven-eighths cents per bottle, and on such beverages |
bottles of more than seven ounces each but not more than twelve ounc
each the tax shall be two and one-half cents per bottle; and on suc
beverages in bottles of more than twelve ounces each, the tax shall be :
the rate of two and one-twelfth mills per ounce per bottle. Such tax sha
be paid by the person who manufactures the beverages.

(b) Tax on beverages bottled or sold.—There is hereby levied on 2
beverages bottled in Virginia and on all beverages sold in Virginia, 2
excise tax at the rate of six dollars per barre] of thirty-one gallons, and
tax at the same rate on such beverages in containers of more or less tha
thirty-one gallons, but on such beverages in bottles of not more the
seven ounces each the tax shall be one and one-half cents per bottle, ar
on such beverages in bottles of more than seven ounces each but not mo!
than twelve ounces each the tax shall be two cents per bottle; and on suc
beverages in bottles of more than twleve ounces each, the tax shall be :
the rate of one and two-thirds mills per ounce per bottle. The tax here
levied shall be paid by the respective bottlers and wholesalers of suc
beverages, if not previously paid. No such tax shall be collected upon ar
beverages bottled or sold in Virginia when the State excise tax provide
in this chapter shall have been previously levied and paid thereon in ful
but if on beverages bottled in Virginia there shall have been paid by tl
manufacturer the excise tax herein levied, such bottler shall pay all adc
tional excise taxes which may be due on such beverages in bottled fort

(b-1) In lieu of the tax imposed by paragraph (b) of this sectio
there is hereby levied for the period beginning July one, nineteen hw
dred sixty and ending * August thirty-one, nineteen hundred sixty- ‘
siz, on all beverages bottled in Virginia and on al] beverages sold |
Virginia, an excise tax at the rate of six dollars per barrel of thirt
one gallons, and a tax at the same rate on such beverages in containe
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 pre-
viously 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
Commissioner by the purchase by such retailer of any beverages for re-
sale from any one other than a manufacturer, bottler, or wholesaler li-
censed 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 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 sub-
section 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 agree-
ment 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 pro-
vided for shall not be chargeable against any manufacturer, bottler or
wholesaler on any beverages shipped out of this State by such manufac-
turer, bottler or wholesaler for resale out of this State, or on any beverages
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 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
Commissioner 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.

(9) Manufacturers, bottlers and wholesalers who may have on hand
or in transit as of the close of business August 31, 1966, any Virginia
taxpaid crowns or lids, or any Virginia tax stamps designed for beverages
in bottles, whether attached or unattached to containers, on which its
indicated that the higher rate of tax in force prior to September 1, 1966
was paid to the State, may apply to the Department of Taxation, on forms
prescribed and furnished by it, for the issuance of tax credit certificates
to cover the difference between the higher rate of tax thus paid and the
lower rate of tax effective September 1, 1966, after taking into considera-
tion the allowance for losses as set out in § 4-110. Every such application
for a tax credit certificate shall be filed within ten days after September
1, 1966; t¢ shall state the pertinent facts existing at the close of business
August $1, 1966, and it shall be verified by the affidavit of the applicant.
If the Department of Taxation is satisfied that the application is in proper
form and substance, it shall issue a tax credit certificate to the applicant
in the correct amount as soon as practicable after the receipt of the
application. Additional evidence may be required in any doubtful case.

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