§ 58.1-439.15:01. Tax incentives for use of domestic tobacco.
A. Definitions. - As used in this section, unless the context requires adifferent meaning:
"Domestic tobacco" means tobacco grown, produced, and processed entirelywithin the United States of America.
"Master Settlement Agreement" means the same as that term is defined in §3.2-4200.
"Small tobacco product manufacturer" means an entity making an assignmentpursuant to § 3.2-4202 that directly (and not exclusively through anyaffiliate) manufactures fewer than 5 billion cigarettes in the calendar yearin which the assignment is made, whose manufactured cigarettes contain aminimum of 75 percent domestic tobacco, who is not participating in theMaster Settlement Agreement, who is in compliance with all obligationsimposed pursuant to Article 1 (§ 3.2-4200 et seq.) and Article 3 (§ 3.2-4204et seq.) of Chapter 42 of Title 3.2, and who has executed an assignment andpayment to the Commonwealth in accordance with Article 2 (§ 3.2-4202 et seq.)of Chapter 42 of Title 3.2.
B. Any small tobacco product manufacturer who intends to apply for incentivepayments pursuant to this section shall, by January 31 of the applicableyear, provide in a written certification to the Department such informationas the Department may require to establish: (i) the percentage of domestictobacco contained in cigarettes produced by such manufacturer; and (ii) theamount paid for domestic tobacco purchased by the manufacturer on or afterJanuary 1, 2005, which was used by the manufacturer in manufacturingcigarettes in the immediately preceding year. For all such certificationsmade by an eligible manufacturer that are approved by the Department, theDepartment shall cause incentive payments to be made to the small tobaccoproduct manufacturer. Incentive payments shall first be made pursuant to thissection in calendar year 2007 for calendar year 2006 manufacturing.
The Tax Commissioner shall, as soon as practicable but no later than 30 daysafter the manufacturer's certification, make a written certification to theComptroller of the amount of the incentive payment to be made to the smalltobacco product manufacturer. As soon as practicable after receipt of the TaxCommissioner's certification, but no later than 15 days after receipt of suchcertification, the Comptroller shall draw his warrant from funds in theappropriate escrow account pursuant to §§ 3.2-4201 and 3.2-4203 on theTreasurer of Virginia in the proper amount in favor of the small tobaccoproduct manufacturer.
C. 1. For incentive payments made in 2007 for calendar year 2006, theincentive payments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2006, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 25 percent of the amount that themanufacturer paid in calendar year 2005 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2 net of any escrow funds released and reverted back to the small tobaccoproduct manufacturer that are attributable to calendar year 2005 escrowpayments pursuant to subdivision B 2 of § 3.2-4201 as it was in effect onJune 30, 2005. The amount paid into a qualified escrow account in calendaryear 2005 shall also include the amount that the small tobacco productmanufacturer paid into a qualified escrow account for all calendar yearsprior to 2005 net of any escrow funds released and reverted back to themanufacturer for such years pursuant to subdivision B 2 of § 3.2-4201 as itwas in effect on June 30, 2005.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $9 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $9 million limitation is in excess of $9 million, the share of the $9million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
2. For incentive payments made in 2008 for calendar year 2007, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2007, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 20 percent of the amount that themanufacturer paid in calendar year 2006 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $8 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $8 million limitation is in excess of $8 million, the share of the $8million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
3. For incentive payments made in 2009 for calendar year 2008, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2008, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 15 percent of the amount that themanufacturer paid in calendar year 2007 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $6 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $6 million limitation is in excess of $6 million, the share of the $6million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
4. For incentive payments made in 2010 for calendar year 2009, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2009, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 10 percent of the amount that themanufacturer paid in calendar year 2008 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $4 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $4 million limitation is in excess of $4 million, the share of the $4million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
5. For incentive payments made in 2011 for calendar year 2010, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2010, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to five percent of the amount that themanufacturer paid in calendar year 2009 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $3 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $3 million limitation is in excess of $3 million, the share of the $3million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
6. For incentive payments made in 2012 for calendar year 2011, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2011, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to five percent of the amount that themanufacturer paid in calendar year 2010 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $3 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $3 million limitation is in excess of $3 million, the share of the $3million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
7. No incentive payments shall be made in calendar years subsequent to 2012.
D. If the aggregate amount of the incentive payments to all small tobaccoproduct manufacturers to be made in any calendar year exceeds the aggregatelimitation for incentive payments for the year, the payment to eachqualifying small tobacco product manufacturer for such year shall be a prorata share of such aggregate limitation based upon the amount of theincentive payment that would have been made to each qualifying manufacturerfor such year if there were no such aggregate limitation.
E. A small tobacco product manufacturer shall not be eligible for anyincentive payment under this section for purchases of domestic tobacco thatis grown by an agent or director of the small tobacco product manufacturer.
F. The provisions of Chapter 18 (§ 58.1-1800 et seq.) shall apply to theadministration of this section, mutatis mutandis.
§ 58.1-439.15:01. Tax incentives for use of domestic tobacco.
A. Definitions. - As used in this section, unless the context requires adifferent meaning:
"Domestic tobacco" means tobacco grown, produced, and processed entirelywithin the United States of America.
"Master Settlement Agreement" means the same as that term is defined in §3.2-4200.
"Small tobacco product manufacturer" means an entity making an assignmentpursuant to § 3.2-4202 that directly (and not exclusively through anyaffiliate) manufactures fewer than 5 billion cigarettes in the calendar yearin which the assignment is made, whose manufactured cigarettes contain aminimum of 75 percent domestic tobacco, who is not participating in theMaster Settlement Agreement, who is in compliance with all obligationsimposed pursuant to Article 1 (§ 3.2-4200 et seq.) and Article 3 (§ 3.2-4204et seq.) of Chapter 42 of Title 3.2, and who has executed an assignment andpayment to the Commonwealth in accordance with Article 2 (§ 3.2-4202 et seq.)of Chapter 42 of Title 3.2.
B. Any small tobacco product manufacturer who intends to apply for incentivepayments pursuant to this section shall, by January 31 of the applicableyear, provide in a written certification to the Department such informationas the Department may require to establish: (i) the percentage of domestictobacco contained in cigarettes produced by such manufacturer; and (ii) theamount paid for domestic tobacco purchased by the manufacturer on or afterJanuary 1, 2005, which was used by the manufacturer in manufacturingcigarettes in the immediately preceding year. For all such certificationsmade by an eligible manufacturer that are approved by the Department, theDepartment shall cause incentive payments to be made to the small tobaccoproduct manufacturer. Incentive payments shall first be made pursuant to thissection in calendar year 2007 for calendar year 2006 manufacturing.
The Tax Commissioner shall, as soon as practicable but no later than 30 daysafter the manufacturer's certification, make a written certification to theComptroller of the amount of the incentive payment to be made to the smalltobacco product manufacturer. As soon as practicable after receipt of the TaxCommissioner's certification, but no later than 15 days after receipt of suchcertification, the Comptroller shall draw his warrant from funds in theappropriate escrow account pursuant to §§ 3.2-4201 and 3.2-4203 on theTreasurer of Virginia in the proper amount in favor of the small tobaccoproduct manufacturer.
C. 1. For incentive payments made in 2007 for calendar year 2006, theincentive payments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2006, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 25 percent of the amount that themanufacturer paid in calendar year 2005 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2 net of any escrow funds released and reverted back to the small tobaccoproduct manufacturer that are attributable to calendar year 2005 escrowpayments pursuant to subdivision B 2 of § 3.2-4201 as it was in effect onJune 30, 2005. The amount paid into a qualified escrow account in calendaryear 2005 shall also include the amount that the small tobacco productmanufacturer paid into a qualified escrow account for all calendar yearsprior to 2005 net of any escrow funds released and reverted back to themanufacturer for such years pursuant to subdivision B 2 of § 3.2-4201 as itwas in effect on June 30, 2005.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $9 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $9 million limitation is in excess of $9 million, the share of the $9million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
2. For incentive payments made in 2008 for calendar year 2007, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2007, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 20 percent of the amount that themanufacturer paid in calendar year 2006 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $8 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $8 million limitation is in excess of $8 million, the share of the $8million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
3. For incentive payments made in 2009 for calendar year 2008, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2008, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 15 percent of the amount that themanufacturer paid in calendar year 2007 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $6 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $6 million limitation is in excess of $6 million, the share of the $6million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
4. For incentive payments made in 2010 for calendar year 2009, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2009, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 10 percent of the amount that themanufacturer paid in calendar year 2008 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $4 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $4 million limitation is in excess of $4 million, the share of the $4million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
5. For incentive payments made in 2011 for calendar year 2010, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2010, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to five percent of the amount that themanufacturer paid in calendar year 2009 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $3 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $3 million limitation is in excess of $3 million, the share of the $3million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
6. For incentive payments made in 2012 for calendar year 2011, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2011, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to five percent of the amount that themanufacturer paid in calendar year 2010 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $3 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $3 million limitation is in excess of $3 million, the share of the $3million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
7. No incentive payments shall be made in calendar years subsequent to 2012.
D. If the aggregate amount of the incentive payments to all small tobaccoproduct manufacturers to be made in any calendar year exceeds the aggregatelimitation for incentive payments for the year, the payment to eachqualifying small tobacco product manufacturer for such year shall be a prorata share of such aggregate limitation based upon the amount of theincentive payment that would have been made to each qualifying manufacturerfor such year if there were no such aggregate limitation.
E. A small tobacco product manufacturer shall not be eligible for anyincentive payment under this section for purchases of domestic tobacco thatis grown by an agent or director of the small tobacco product manufacturer.
F. The provisions of Chapter 18 (§ 58.1-1800 et seq.) shall apply to theadministration of this section, mutatis mutandis.
§ 58.1-439.15:01. Tax incentives for use of domestic tobacco.
A. Definitions. - As used in this section, unless the context requires adifferent meaning:
"Domestic tobacco" means tobacco grown, produced, and processed entirelywithin the United States of America.
"Master Settlement Agreement" means the same as that term is defined in §3.2-4200.
"Small tobacco product manufacturer" means an entity making an assignmentpursuant to § 3.2-4202 that directly (and not exclusively through anyaffiliate) manufactures fewer than 5 billion cigarettes in the calendar yearin which the assignment is made, whose manufactured cigarettes contain aminimum of 75 percent domestic tobacco, who is not participating in theMaster Settlement Agreement, who is in compliance with all obligationsimposed pursuant to Article 1 (§ 3.2-4200 et seq.) and Article 3 (§ 3.2-4204et seq.) of Chapter 42 of Title 3.2, and who has executed an assignment andpayment to the Commonwealth in accordance with Article 2 (§ 3.2-4202 et seq.)of Chapter 42 of Title 3.2.
B. Any small tobacco product manufacturer who intends to apply for incentivepayments pursuant to this section shall, by January 31 of the applicableyear, provide in a written certification to the Department such informationas the Department may require to establish: (i) the percentage of domestictobacco contained in cigarettes produced by such manufacturer; and (ii) theamount paid for domestic tobacco purchased by the manufacturer on or afterJanuary 1, 2005, which was used by the manufacturer in manufacturingcigarettes in the immediately preceding year. For all such certificationsmade by an eligible manufacturer that are approved by the Department, theDepartment shall cause incentive payments to be made to the small tobaccoproduct manufacturer. Incentive payments shall first be made pursuant to thissection in calendar year 2007 for calendar year 2006 manufacturing.
The Tax Commissioner shall, as soon as practicable but no later than 30 daysafter the manufacturer's certification, make a written certification to theComptroller of the amount of the incentive payment to be made to the smalltobacco product manufacturer. As soon as practicable after receipt of the TaxCommissioner's certification, but no later than 15 days after receipt of suchcertification, the Comptroller shall draw his warrant from funds in theappropriate escrow account pursuant to §§ 3.2-4201 and 3.2-4203 on theTreasurer of Virginia in the proper amount in favor of the small tobaccoproduct manufacturer.
C. 1. For incentive payments made in 2007 for calendar year 2006, theincentive payments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2006, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 25 percent of the amount that themanufacturer paid in calendar year 2005 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2 net of any escrow funds released and reverted back to the small tobaccoproduct manufacturer that are attributable to calendar year 2005 escrowpayments pursuant to subdivision B 2 of § 3.2-4201 as it was in effect onJune 30, 2005. The amount paid into a qualified escrow account in calendaryear 2005 shall also include the amount that the small tobacco productmanufacturer paid into a qualified escrow account for all calendar yearsprior to 2005 net of any escrow funds released and reverted back to themanufacturer for such years pursuant to subdivision B 2 of § 3.2-4201 as itwas in effect on June 30, 2005.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $9 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $9 million limitation is in excess of $9 million, the share of the $9million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
2. For incentive payments made in 2008 for calendar year 2007, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2007, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 20 percent of the amount that themanufacturer paid in calendar year 2006 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $8 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $8 million limitation is in excess of $8 million, the share of the $8million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
3. For incentive payments made in 2009 for calendar year 2008, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2008, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 15 percent of the amount that themanufacturer paid in calendar year 2007 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $6 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $6 million limitation is in excess of $6 million, the share of the $6million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
4. For incentive payments made in 2010 for calendar year 2009, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2009, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to 10 percent of the amount that themanufacturer paid in calendar year 2008 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $4 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $4 million limitation is in excess of $4 million, the share of the $4million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
5. For incentive payments made in 2011 for calendar year 2010, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2010, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to five percent of the amount that themanufacturer paid in calendar year 2009 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $3 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $3 million limitation is in excess of $3 million, the share of the $3million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
6. For incentive payments made in 2012 for calendar year 2011, the incentivepayments shall equal the amount paid by the small tobacco productmanufacturer for domestic tobacco that was purchased by the manufacturer onor after January 1, 2005, and was used by the manufacturer in manufacturingcigarettes in 2011, provided that the aggregate incentive payments for whicha small tobacco product manufacturer may be eligible for such purchases shallnot exceed a total sum equal to five percent of the amount that themanufacturer paid in calendar year 2010 into a qualified escrow accountestablished pursuant to Article 1 (§ 3.2-4200 et seq.) of Chapter 42 of Title3.2.
The aggregate amount of incentive payments to all small tobacco productmanufacturers pursuant to this subdivision shall not exceed $3 million.However, if the amount of the incentive payments computed by the TaxCommissioner pursuant to the provisions of this subdivision without regard tosuch $3 million limitation is in excess of $3 million, the share of the $3million to be paid to each qualifying small tobacco product manufacturershall be determined as provided in subsection D.
7. No incentive payments shall be made in calendar years subsequent to 2012.
D. If the aggregate amount of the incentive payments to all small tobaccoproduct manufacturers to be made in any calendar year exceeds the aggregatelimitation for incentive payments for the year, the payment to eachqualifying small tobacco product manufacturer for such year shall be a prorata share of such aggregate limitation based upon the amount of theincentive payment that would have been made to each qualifying manufacturerfor such year if there were no such aggregate limitation.
E. A small tobacco product manufacturer shall not be eligible for anyincentive payment under this section for purchases of domestic tobacco thatis grown by an agent or director of the small tobacco product manufacturer.
F. The provisions of Chapter 18 (§ 58.1-1800 et seq.) shall apply to theadministration of this section, mutatis mutandis.
