§ 58.1-3832. Local ordinances to administer and enforce local taxes on saleor use of cigarettes.
Any county, city or town having a tax upon the sale or use of cigarettes mayby ordinance, provide for the administration and enforcement of any suchcigarette tax. Such local ordinance may:
1. Provide for the registration of any distributor, wholesaler, vendor,retailer or other person selling, storing or possessing cigarettes within ortransporting cigarettes within or into such taxing jurisdiction for sale oruse. Such registration may be conditioned upon the filing of a bond with asurety company authorized to do business in Virginia as surety, which bondshall not exceed one and one-half times the average monthly liability of suchtaxpayer. The county, city or town may revoke registration if such bond isimpaired, but for no other reason. Any such distributor, wholesaler, retaileror other person whose business and residence is outside the taxingjurisdiction, who shall sell, store or possess in the taxing jurisdictiontherein any cigarettes shall, by virtue of such sale, storage or possessionsubmit himself to its legal jurisdiction and appoint as his attorney for anyservice of lawful process such officer or person as may be designated in thelocal ordinance for that purpose. A copy of any such process served on thesaid officer or person shall be sent forthwith by registered mail to thedistributor, wholesaler or retailer.
2. Provide for the use of a tax stamp or meter impression as evidence ofpayment of the tax or other method or system of reporting payment andcollection of such tax.
3. Provide that tobacco products found in quantities of more than six cartonswithin the taxing jurisdiction shall be conclusively presumed for sale or usewithin the jurisdiction and may be seized and confiscated if:
a. They are in transit, and are not accompanied by a bill of lading or otherdocument indicating the true name and address of the consignor or seller andof the consignee or purchaser, and the brands and quantity of cigarettes sotransported, or are in transit and accompanied by a bill of lading or otherdocument which is false or fraudulent, in whole or in part; or
b. They are in transit and are accompanied by a bill of lading or otherdocument indicating:
(1) A consignee or purchaser in another state or the District of Columbia whois not authorized by the law of such other jurisdiction to receive or possesssuch tobacco products on which the taxes imposed by such other jurisdictionhave not been paid, unless the tax of the state or District of destinationhas been paid and the said products bear the tax stamps of that state orDistrict; or
(2) A consignee or purchaser in the Commonwealth of Virginia but outside thetaxing jurisdiction who does not possess a Virginia sales and use taxcertificate, a Virginia retail cigarette license and, where applicable, botha business license and retail cigarette license issued by the localjurisdiction of destination; or
c. They are not in transit and the tax has not been paid, nor have approvedarrangements for payment been made, provided that this subparagraph shall notapply to cigarettes in the possession of distributors or public warehouseswhich have filed notice and appropriate proof with the taxing jurisdictionthat those cigarettes are temporarily within the taxing jurisdiction and willbe sent to consignees or purchasers outside the jurisdiction in the normalcourse of business.
4. Provide that cigarettes and other property, other than motor vehicles,used in the furtherance of any illegal evasion of the tax so seized andconfiscated may be disposed of by sale or other method deemed appropriate bythe local taxing authority. No credit from any sale or other dispositionshall be allowed toward any tax or penalties owed.
5. Provide that persons violating any provision thereof shall be deemedguilty of a Class 1 misdemeanor, and require the payment of penalties forlate payment not to exceed ten percent per month, penalties for fraud orevasion of the tax not to exceed fifty percent, and interest not to exceedthree quarters of one percent per month, upon any tax found to be overdue andunpaid. The mere possession of untaxed cigarettes in quantities of not morethan six cartons shall not be a violation of any such ordinance.
6. Provide for the forfeiture and sale of any property seized; provided,however, that proper notice of such seizure shall be given to the knownholders of property interests in such property and shall include proceduresfor administrative appeal as well as affirmative defenses which may beasserted by such holders which procedures must be set forth in reasonabledetail.
7. Provide that any coin-operated vending machine, in which any cigarettesare found, stored or possessed bearing a counterfeit or bogus cigarette taxstamp or impression or any unstamped tobacco products, or any cigarettes uponwhich the tax has not been paid, may be declared contraband property andshall be subject to confiscation and sale as provided in subsection 6. Whenany such vending machine is found containing such cigarettes it shall bepresumed that such cigarettes were intended for distribution, sale or usetherefrom. In lieu of immediate seizure and confiscation of any vendingmachines used in an illegal evasion of the tax it may be sealed byappropriate enforcement authorities to prevent continued illegal sale orremoval of any cigarettes, and may be left unmoved until other civil andcriminal penalties are imposed or waived. Notice requirements shall be thesame as if the machine had been seized. Such seal may be removed and themachine declared eligible for operation only by authorized enforcementauthorities. Nothing in this section shall prevent seizure and confiscationof a vending machine at any time after it is sealed.
8. Provide that any counterfeit stamps or counterfeit impression devices mayalso be seized and confiscated.
9. Any county, city or town may enact an ordinance which would delegate itsadministrative and enforcement authority under its cigarette tax ordinance toone agency or authority pursuant to the provisions of § 15.2-1300. Suchagency or authority may promulgate rules and regulations governing thedisplay of cigarette stamps in vending machines, tax liens against propertyof taxpayers hereunder, extend varying discount rates and establish differentclasses of taxpayers or those required to collect and remit the tax,requirements concerning keeping and production of records, administrative andjeopardy assessment of tax where reasonably justified, required notice toauthorities of sale of taxpayer's business, audit requirements and authority,and criteria for authority of distributors and others to possess untaxedcigarettes and any other provisions consistent with the powers granted bythis section or necessarily implied therefrom. Such ordinance may furtherprovide that such agency or authority created may issue a common revenuestamp, employ legal counsel, bring appropriate court action, in its own namewhere necessary to enforce payment of the cigarette taxes or penalties owedany member jurisdiction and provide cigarette tax agents, and the necessaryenforcement supplies and equipment needed to effectively enforce thecigarette tax ordinance promulgated by each such county, city or town. Anycigarette tax agents shall meet such requirements of training or experienceas may be promulgated from time to time by the enforcement authority whenperforming their duties and shall be required to carry proper identificationand may be armed for their own protection and for the enforcement of suchordinance. Any such agent shall have the power of arrest upon reasonable andprobable cause that a violation of any tobacco tax ordinance has beencommitted.
(Code 1950, § 58-757.29; 1974, c. 472; 1977, c. 595; 1984, c. 675.)
§ 58.1-3832. Local ordinances to administer and enforce local taxes on saleor use of cigarettes.
Any county, city or town having a tax upon the sale or use of cigarettes mayby ordinance, provide for the administration and enforcement of any suchcigarette tax. Such local ordinance may:
1. Provide for the registration of any distributor, wholesaler, vendor,retailer or other person selling, storing or possessing cigarettes within ortransporting cigarettes within or into such taxing jurisdiction for sale oruse. Such registration may be conditioned upon the filing of a bond with asurety company authorized to do business in Virginia as surety, which bondshall not exceed one and one-half times the average monthly liability of suchtaxpayer. The county, city or town may revoke registration if such bond isimpaired, but for no other reason. Any such distributor, wholesaler, retaileror other person whose business and residence is outside the taxingjurisdiction, who shall sell, store or possess in the taxing jurisdictiontherein any cigarettes shall, by virtue of such sale, storage or possessionsubmit himself to its legal jurisdiction and appoint as his attorney for anyservice of lawful process such officer or person as may be designated in thelocal ordinance for that purpose. A copy of any such process served on thesaid officer or person shall be sent forthwith by registered mail to thedistributor, wholesaler or retailer.
2. Provide for the use of a tax stamp or meter impression as evidence ofpayment of the tax or other method or system of reporting payment andcollection of such tax.
3. Provide that tobacco products found in quantities of more than six cartonswithin the taxing jurisdiction shall be conclusively presumed for sale or usewithin the jurisdiction and may be seized and confiscated if:
a. They are in transit, and are not accompanied by a bill of lading or otherdocument indicating the true name and address of the consignor or seller andof the consignee or purchaser, and the brands and quantity of cigarettes sotransported, or are in transit and accompanied by a bill of lading or otherdocument which is false or fraudulent, in whole or in part; or
b. They are in transit and are accompanied by a bill of lading or otherdocument indicating:
(1) A consignee or purchaser in another state or the District of Columbia whois not authorized by the law of such other jurisdiction to receive or possesssuch tobacco products on which the taxes imposed by such other jurisdictionhave not been paid, unless the tax of the state or District of destinationhas been paid and the said products bear the tax stamps of that state orDistrict; or
(2) A consignee or purchaser in the Commonwealth of Virginia but outside thetaxing jurisdiction who does not possess a Virginia sales and use taxcertificate, a Virginia retail cigarette license and, where applicable, botha business license and retail cigarette license issued by the localjurisdiction of destination; or
c. They are not in transit and the tax has not been paid, nor have approvedarrangements for payment been made, provided that this subparagraph shall notapply to cigarettes in the possession of distributors or public warehouseswhich have filed notice and appropriate proof with the taxing jurisdictionthat those cigarettes are temporarily within the taxing jurisdiction and willbe sent to consignees or purchasers outside the jurisdiction in the normalcourse of business.
4. Provide that cigarettes and other property, other than motor vehicles,used in the furtherance of any illegal evasion of the tax so seized andconfiscated may be disposed of by sale or other method deemed appropriate bythe local taxing authority. No credit from any sale or other dispositionshall be allowed toward any tax or penalties owed.
5. Provide that persons violating any provision thereof shall be deemedguilty of a Class 1 misdemeanor, and require the payment of penalties forlate payment not to exceed ten percent per month, penalties for fraud orevasion of the tax not to exceed fifty percent, and interest not to exceedthree quarters of one percent per month, upon any tax found to be overdue andunpaid. The mere possession of untaxed cigarettes in quantities of not morethan six cartons shall not be a violation of any such ordinance.
6. Provide for the forfeiture and sale of any property seized; provided,however, that proper notice of such seizure shall be given to the knownholders of property interests in such property and shall include proceduresfor administrative appeal as well as affirmative defenses which may beasserted by such holders which procedures must be set forth in reasonabledetail.
7. Provide that any coin-operated vending machine, in which any cigarettesare found, stored or possessed bearing a counterfeit or bogus cigarette taxstamp or impression or any unstamped tobacco products, or any cigarettes uponwhich the tax has not been paid, may be declared contraband property andshall be subject to confiscation and sale as provided in subsection 6. Whenany such vending machine is found containing such cigarettes it shall bepresumed that such cigarettes were intended for distribution, sale or usetherefrom. In lieu of immediate seizure and confiscation of any vendingmachines used in an illegal evasion of the tax it may be sealed byappropriate enforcement authorities to prevent continued illegal sale orremoval of any cigarettes, and may be left unmoved until other civil andcriminal penalties are imposed or waived. Notice requirements shall be thesame as if the machine had been seized. Such seal may be removed and themachine declared eligible for operation only by authorized enforcementauthorities. Nothing in this section shall prevent seizure and confiscationof a vending machine at any time after it is sealed.
8. Provide that any counterfeit stamps or counterfeit impression devices mayalso be seized and confiscated.
9. Any county, city or town may enact an ordinance which would delegate itsadministrative and enforcement authority under its cigarette tax ordinance toone agency or authority pursuant to the provisions of § 15.2-1300. Suchagency or authority may promulgate rules and regulations governing thedisplay of cigarette stamps in vending machines, tax liens against propertyof taxpayers hereunder, extend varying discount rates and establish differentclasses of taxpayers or those required to collect and remit the tax,requirements concerning keeping and production of records, administrative andjeopardy assessment of tax where reasonably justified, required notice toauthorities of sale of taxpayer's business, audit requirements and authority,and criteria for authority of distributors and others to possess untaxedcigarettes and any other provisions consistent with the powers granted bythis section or necessarily implied therefrom. Such ordinance may furtherprovide that such agency or authority created may issue a common revenuestamp, employ legal counsel, bring appropriate court action, in its own namewhere necessary to enforce payment of the cigarette taxes or penalties owedany member jurisdiction and provide cigarette tax agents, and the necessaryenforcement supplies and equipment needed to effectively enforce thecigarette tax ordinance promulgated by each such county, city or town. Anycigarette tax agents shall meet such requirements of training or experienceas may be promulgated from time to time by the enforcement authority whenperforming their duties and shall be required to carry proper identificationand may be armed for their own protection and for the enforcement of suchordinance. Any such agent shall have the power of arrest upon reasonable andprobable cause that a violation of any tobacco tax ordinance has beencommitted.
(Code 1950, § 58-757.29; 1974, c. 472; 1977, c. 595; 1984, c. 675.)
§ 58.1-3832. Local ordinances to administer and enforce local taxes on saleor use of cigarettes.
Any county, city or town having a tax upon the sale or use of cigarettes mayby ordinance, provide for the administration and enforcement of any suchcigarette tax. Such local ordinance may:
1. Provide for the registration of any distributor, wholesaler, vendor,retailer or other person selling, storing or possessing cigarettes within ortransporting cigarettes within or into such taxing jurisdiction for sale oruse. Such registration may be conditioned upon the filing of a bond with asurety company authorized to do business in Virginia as surety, which bondshall not exceed one and one-half times the average monthly liability of suchtaxpayer. The county, city or town may revoke registration if such bond isimpaired, but for no other reason. Any such distributor, wholesaler, retaileror other person whose business and residence is outside the taxingjurisdiction, who shall sell, store or possess in the taxing jurisdictiontherein any cigarettes shall, by virtue of such sale, storage or possessionsubmit himself to its legal jurisdiction and appoint as his attorney for anyservice of lawful process such officer or person as may be designated in thelocal ordinance for that purpose. A copy of any such process served on thesaid officer or person shall be sent forthwith by registered mail to thedistributor, wholesaler or retailer.
2. Provide for the use of a tax stamp or meter impression as evidence ofpayment of the tax or other method or system of reporting payment andcollection of such tax.
3. Provide that tobacco products found in quantities of more than six cartonswithin the taxing jurisdiction shall be conclusively presumed for sale or usewithin the jurisdiction and may be seized and confiscated if:
a. They are in transit, and are not accompanied by a bill of lading or otherdocument indicating the true name and address of the consignor or seller andof the consignee or purchaser, and the brands and quantity of cigarettes sotransported, or are in transit and accompanied by a bill of lading or otherdocument which is false or fraudulent, in whole or in part; or
b. They are in transit and are accompanied by a bill of lading or otherdocument indicating:
(1) A consignee or purchaser in another state or the District of Columbia whois not authorized by the law of such other jurisdiction to receive or possesssuch tobacco products on which the taxes imposed by such other jurisdictionhave not been paid, unless the tax of the state or District of destinationhas been paid and the said products bear the tax stamps of that state orDistrict; or
(2) A consignee or purchaser in the Commonwealth of Virginia but outside thetaxing jurisdiction who does not possess a Virginia sales and use taxcertificate, a Virginia retail cigarette license and, where applicable, botha business license and retail cigarette license issued by the localjurisdiction of destination; or
c. They are not in transit and the tax has not been paid, nor have approvedarrangements for payment been made, provided that this subparagraph shall notapply to cigarettes in the possession of distributors or public warehouseswhich have filed notice and appropriate proof with the taxing jurisdictionthat those cigarettes are temporarily within the taxing jurisdiction and willbe sent to consignees or purchasers outside the jurisdiction in the normalcourse of business.
4. Provide that cigarettes and other property, other than motor vehicles,used in the furtherance of any illegal evasion of the tax so seized andconfiscated may be disposed of by sale or other method deemed appropriate bythe local taxing authority. No credit from any sale or other dispositionshall be allowed toward any tax or penalties owed.
5. Provide that persons violating any provision thereof shall be deemedguilty of a Class 1 misdemeanor, and require the payment of penalties forlate payment not to exceed ten percent per month, penalties for fraud orevasion of the tax not to exceed fifty percent, and interest not to exceedthree quarters of one percent per month, upon any tax found to be overdue andunpaid. The mere possession of untaxed cigarettes in quantities of not morethan six cartons shall not be a violation of any such ordinance.
6. Provide for the forfeiture and sale of any property seized; provided,however, that proper notice of such seizure shall be given to the knownholders of property interests in such property and shall include proceduresfor administrative appeal as well as affirmative defenses which may beasserted by such holders which procedures must be set forth in reasonabledetail.
7. Provide that any coin-operated vending machine, in which any cigarettesare found, stored or possessed bearing a counterfeit or bogus cigarette taxstamp or impression or any unstamped tobacco products, or any cigarettes uponwhich the tax has not been paid, may be declared contraband property andshall be subject to confiscation and sale as provided in subsection 6. Whenany such vending machine is found containing such cigarettes it shall bepresumed that such cigarettes were intended for distribution, sale or usetherefrom. In lieu of immediate seizure and confiscation of any vendingmachines used in an illegal evasion of the tax it may be sealed byappropriate enforcement authorities to prevent continued illegal sale orremoval of any cigarettes, and may be left unmoved until other civil andcriminal penalties are imposed or waived. Notice requirements shall be thesame as if the machine had been seized. Such seal may be removed and themachine declared eligible for operation only by authorized enforcementauthorities. Nothing in this section shall prevent seizure and confiscationof a vending machine at any time after it is sealed.
8. Provide that any counterfeit stamps or counterfeit impression devices mayalso be seized and confiscated.
9. Any county, city or town may enact an ordinance which would delegate itsadministrative and enforcement authority under its cigarette tax ordinance toone agency or authority pursuant to the provisions of § 15.2-1300. Suchagency or authority may promulgate rules and regulations governing thedisplay of cigarette stamps in vending machines, tax liens against propertyof taxpayers hereunder, extend varying discount rates and establish differentclasses of taxpayers or those required to collect and remit the tax,requirements concerning keeping and production of records, administrative andjeopardy assessment of tax where reasonably justified, required notice toauthorities of sale of taxpayer's business, audit requirements and authority,and criteria for authority of distributors and others to possess untaxedcigarettes and any other provisions consistent with the powers granted bythis section or necessarily implied therefrom. Such ordinance may furtherprovide that such agency or authority created may issue a common revenuestamp, employ legal counsel, bring appropriate court action, in its own namewhere necessary to enforce payment of the cigarette taxes or penalties owedany member jurisdiction and provide cigarette tax agents, and the necessaryenforcement supplies and equipment needed to effectively enforce thecigarette tax ordinance promulgated by each such county, city or town. Anycigarette tax agents shall meet such requirements of training or experienceas may be promulgated from time to time by the enforcement authority whenperforming their duties and shall be required to carry proper identificationand may be armed for their own protection and for the enforcement of suchordinance. Any such agent shall have the power of arrest upon reasonable andprobable cause that a violation of any tobacco tax ordinance has beencommitted.
(Code 1950, § 58-757.29; 1974, c. 472; 1977, c. 595; 1984, c. 675.)
