58.1-1003 - How paid; affixing of stamps; records of stamping agents; civil penalties.
§ 58.1-1003. How paid; affixing of stamps; records of stamping agents; civilpenalties.
A. Except as otherwise specifically provided pursuant to § 58.1-1003.2, thetaxes imposed by this chapter shall be paid by affixing stamps equaling theamount of the tax in the manner set forth. The stamps shall be affixed toeach individual package, bag, box or can in such a manner that their removalwill require continued application of water or steam. Every stamping agent inthe Commonwealth shall affix to any unstamped cigarettes the requisitedenominations and amount of stamp or stamps that represent the proper taxlevied by this chapter prior to shipping to other wholesale dealers or retailoutlets.
B. Every wholesale dealer shall at the time of shipping or delivering anycigarettes make and retain a true duplicate invoice of the same which shallshow full and complete details of the sale or delivery of the taxablearticle. All stamping agents shall also keep a record of purchases of allcigarettes, and retain all books, records, and memoranda pertaining to thepurchase and sale of such cigarettes for a period of five years, and suchrecords shall be subject to examination by the Department upon request.
C. Every stamping agent shall be required to file a report between the firstand twentieth of each month, covering all revenue stamps the stamping agentaffixed to cigarettes during the preceding month. The report shall (i) listall brands of cigarettes to which the Virginia revenue stamp was affixed andthe quantity, measured in packs, of all such brands to which the Virginiarevenue stamp was affixed; (ii) list the name and address of both themanufacturer of the cigarettes and the entity from which the cigarettes wereobtained; and (iii) include the required documentation for and detail theamount and source of any bad debt deductions being taken pursuant to §58.1-1003.1.
D. 1. For the purpose of compensating stamping agents for accounting for thetax imposed under this article on roll-your-own tobacco, such stamping agentsshall be allowed when filing a monthly return and paying the tax to deduct 2%of the tax otherwise due if the amount due was not delinquent at the time ofpayment.
2. The Tax Commissioner shall prepare for each fiscal year an estimate of thetotal amount of all discounts allowed to stamping agents pursuant to thissubsection and such amount shall be taken into consideration in preparing theofficial estimate of the total revenues to be collected during the fiscalyear by the Virginia Health Care Fund established under § 32.1-366. Anyreduction in funding available for programs financed by the Virginia HealthCare Fund as a result of such discounts shall be made up by the general fund.
E. Any stamping agent who fails or refuses to comply with any of the aboveprovisions shall have such agent's permit to affix revenue stamps revoked bythe Commissioner. Additionally, a stamping agent may be subject to a civilpenalty of $500 for each day after the due date that an agent fails orrefuses to file a report required under subsection C. The penalty shall beassessed and collected by the Department as other taxes are collected.
(Code 1950, §§ 58-757.1, 58-757.2; 1960, c. 392, §§ 1, 2; 1962, c. 473; 1980,c. 633; 1984, c. 675; 2004, c. 1029; 2005, c. 28; 2006, cc. 64, 229, 768;2010, c. 701.)