58.1-1011 - Qualification for permit to affix Virginia revenue stamps; penalty.
§ 58.1-1011. Qualification for permit to affix Virginia revenue stamps;penalty.
Only manufacturers, wholesale dealers and retail dealers may be permitted asstamping agents. It shall be unlawful for any person to purchase, possess oraffix Virginia revenue stamps without first obtaining a permit to do so fromthe Department. Every manufacturer, wholesale dealer or retail dealer whodesires to qualify as a stamping agent with the Department shall makeapplication to the Department on forms prescribed for this purpose, whichshall be supplied upon request. The application forms will require suchinformation relative to the nature of business engaged in by the applicant asthe Department deems necessary to the qualifying of the applicant as astamping agent. The Department shall conduct a background investigation, toinclude a Virginia Criminal History Records search, and fingerprints of theapplicant, or its responsible principals, managers, and other persons engagedin handling and stamping cigarettes at the licensable locations, that shallbe submitted to the Federal Bureau of Investigation if the Departmentdetermines a National Criminal Records search is necessary, on applicants forlicensure as cigarette tax stamping agents. The Department may refuse toissue a stamping permit or may suspend, revoke or refuse to renew a stampingpermit issued to any person, partnership, corporation, limited liabilitycompany or business trust, if it determines that the principals, managers,and other persons engaged in handling and stamping cigarettes at thelicensable location of the applicant has been (i) found guilty of any fraudor misrepresentation in any connection, (ii) convicted of robbery, extortion,burglary, larceny, embezzlement, fraudulent conversion, gambling, perjury,bribery, treason, or racketeering, or (iii) convicted of a felony. Anyone whoknowingly and willfully falsifies, conceals or misrepresents a material factor knowingly and willfully makes a false, fictitious or fraudulent statementor representation in any application for a stamping permit to the Departmentshall be guilty of a Class 1 misdemeanor. The Department may establish anapplication or renewal fee not to exceed $750 to be retained by theDepartment to be applied to the administrative and other costs of processingstamping agent applications, conducting background investigations and issuingstamping permits. Any application or renewal fees collected pursuant to thissection in excess of such costs as of June 30 in even numbered years shall bereported to the State Treasurer and deposited into the state treasury. If theDepartment after review of his application, believes the manufacturer,wholesale dealer or retail dealer to be qualified, the Department shall issueto the applicant a permit qualifying him as a stamping agent, as defined inthis chapter, and he shall be allowed the discount on purchases of Virginiarevenue stamps as set out herein for stamping agents purchasing stamps fortheir individual use. Such stamping agent shall be authorized to affixVirginia revenue stamps, and in addition, if the applicant qualifies as awholesale dealer, that shall be so noted on the permit issued by theDepartment. Permits issued pursuant to this section shall be valid for aperiod of three years from the date of issue unless revoked by the Departmentin the manner provided herein. The Department shall not sell Virginia revenuestamps to any person or entity unless and until the Department has issuedthat person or entity a permit to affix Virginia revenue stamps. TheDepartment may promulgate regulations governing the issuance, suspension andrevocation of stamping agent permits. The Department may at any time revokethe permit issued to any stamping agent as herein provided who is not incompliance with any of the provisions of this chapter, or any of the rules ofthe Department adopted and promulgated under authority of this chapter.
(Code 1950, § 58-757.10; 1960, c. 392, § 10; 1984, c. 675; 2004, c. 1029;2005, c. 28.)