CHAPTER 11

An Act to amend and reenact § 4-15.1, as amended, of the Code of Virginia,
relating to the State tax on certain alcoholic beverages. a
[S 89]

Approved February 7, 1968
Be it enacted by the General Assembly of Virginia:

1. That § 4-15.1, as amended, of the Code of Virginia be amended and
reenacted as follows:

§ 4-15.1. State tax on certain alcoholic beverages.—(a) There is
hereby levied a State tax (1) upon all alcoholic beverages sold either by or
through the Virginia Alcoholic Beverage Control Board, and (2) upon all
other wine sold to persons licensed under the provisions of this chapter to
sell such wine at retail, subject to the provisions hereafter in this section
contained. The State tax hereby levied shall be collected by the Board as to
each sale of alcoholic beverages made either by or through the Board from
the purchaser of such alcoholic beverages at the time of or prior to such
sale; and the State tax hereby levied shal] be collected by the Board as to
each sale of wine made by a wholesale wine distributor to a retail
licensee from the person making such sale. In establishing the prices for
items sold by it, the Board shall add the amount of the tax hereby levied
to the price of each package of alcoholic beverages; provided, however,
that the final price for each package may be established so as to be
divisible by five. As to sales by or through the Board, the tax provided for
by this section shall be computed by the Board on all net sales for each
quarter by dividing the total net sales for the quarter by 1.10 and
multiplying the result by ten per centum.

(b) On all wine sold to retail licensees, the State tax imposed hereby
shall be ten per centum of the price charged such retail licensees; on all
wine sold by the Board to persons other than retail licensees, the State tax
shall be ten per centum of the price charged for such wine.

(c) On all other alcoholic beverages sold by or through the Board,
the State tax shall be ten per centum of the price charged by the Board.

(d) To enable the Board to collect the State tax hereby levied from
wholesale wine distributors, such distributors shall make such reports in
such manner and at such times as the Board may from time to time
require and shall pay the State tax hereby levied to the Board at or prior
to each sale of wine to a retail licensee or at such other time or times as the
Board shall require.

(e) The amount of tax col’ected under this section during each quarter
shall, within fifty days after the close of such quarter, be certified to the
Comptroller by the Board and shall be transferred by him from the special
fund described in § 4-23 of the Code of Virginia to the general fund of
the State treasury ; provided, however, that in the month of June, nineteen
hundred and sixty-nine, and in the month of June of every year there-
after, the Board shall, not later than the twentieth day of the month,
estimate the yield of the tax imposed by this section for the quarter ending
June thirtieth and certify the amount of such estimate to the Comptroller,
whereupon the Comptroller shall, before the end of the month, transfer
the amount of such estimate from the special fund described in § 4-28 of
the Code of Virginia to the general fund of the State treasury, subject to
such adjustment on account of an over-estimate or an under-estimate as
may be indicated within fifty days after the close of the quarter ending
on June thirtieth.

(f) The provisions of this section shall not apply to (1) sales of wine
to wholesale wine distributors for resale to retail licensees, but the pro-
visions of this section shall apply to such resale, (2) sales, other than by
or through government stores, of alcoholic beverages for manufacturing
and industrial purposes, or either of such purposes, (3) sales, other than
by or through government stores, of alcohol for hospital and laboratory
purposes, or either of such purposes, (4) alcoholic beverages shipped from
Virginia to points outside Virginia for resale outside Virginia, (5) sales
to any instrumentality of the federal government, and (6) beer.

(z) The term “wholesale wine distributor”, as used in this section,
means one who holds a wholesale wine distributor’s license issued under
the provisions of this chapter. The term “retail licensee’, as used in this
section, means one who is licensed under this chapter to sell wine at retail.
As used in this section, the term ‘‘net sales” shall mean gross sales less
refunds to customers. The definitions contained in this chapter shall apply
to the words and terms used in this section.

(h) Provided, however, that the counties, cities and towns shall in no
event receive from the profits from the sale of alcoholic beverages less cash
revenue than was received by such counties, cities and towns for the year
ending June thirtieth, nineteen hundred sixty-four.

(i) *This section, as hereby amended, shall be in force * until other-
wise provided by law.