{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-1003.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-1003.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-1003.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-1003.1.html"}],"law_id":59885,"edition_id":1,"section_id":59885,"structure_id":13519,"section_number":"58.1-1003.1","catch_line":"Bad debt; deduction; definition","history":"2006, cc. 64, 229.","full_text":"A\n\nAny stamping agent may deduct the amount of bad debts from the tax imposed by this chapter. The amount deducted shall be charged off as uncollectible on the books of the stamping agent. If a person pays all or part of a bad debt that a stamping agent claimed as a deduction under this section, the stamping agent shall be liable for the amount of taxes deducted in connection with that portion of the debt for which payment is received and shall remit these taxes together with its next report to the Department pursuant to subsection C of § 58.1-1003.B\n\nAny claim for a bad debt deduction under this section shall be supported by all of the following:1\n\nA copy of the original invoice;2\n\nEvidence that the cigarettes described in the invoice were delivered to the person who ordered them; and3\n\nEvidence that the person who ordered and received the cigarettes did not pay the stamping agent for the cigarettes and that the stamping agent used reasonable collection practices in attempting to collect the debt.C\n\nAs used in this section, “bad debt” means the taxes under this chapter attributable to any portion of a debt that is related to a sale of cigarettes subject to tax under this chapter that is not otherwise deductible or excludable, that has become worthless or uncollectible in the time period between the date when taxes accrue to the Department for the stamping agents’ preceding tax return and the date when taxes accrue to the Department for the present return, and that is eligible to be claimed, or could be eligible to be claimed if the stamping agent kept accounts on an accrual basis, as a deduction pursuant to § 166 of the Internal Revenue Code. A bad debt shall not include (i) any interest on the wholesale price of cigarettes, (ii) uncollectible amounts on property that remains in the possession of the stamping agent until the full purchase price is paid, (iii) expenses incurred in attempting to collect any account receivable or any portion of the debt recovered, (iv) any accounts receivable that have been sold to a third party for collection, and (v) repossessed property.","order_by":null,"text":{"0":{"id":219361,"text":"Any stamping agent may deduct the amount of bad debts from the tax imposed by this chapter. The amount deducted shall be charged off as uncollectible on the books of the stamping agent. If a person pays all or part of a bad debt that a stamping agent claimed as a deduction under this section, the stamping agent shall be liable for the amount of taxes deducted in connection with that portion of the debt for which payment is received and shall remit these taxes together with its next report to the Department pursuant to subsection C of § 58.1-1003.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":219362,"text":"Any claim for a bad debt deduction under this section shall be supported by all of the following:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":219363,"text":"A copy of the original invoice;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":219364,"text":"Evidence that the cigarettes described in the invoice were delivered to the person who ordered them; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":219365,"text":"Evidence that the person who ordered and received the cigarettes did not pay the stamping agent for the cigarettes and that the stamping agent used reasonable collection practices in attempting to collect the debt.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":219366,"text":"As used in this section, “bad debt” means the taxes under this chapter attributable to any portion of a debt that is related to a sale of cigarettes subject to tax under this chapter that is not otherwise deductible or excludable, that has become worthless or uncollectible in the time period between the date when taxes accrue to the Department for the stamping agents’ preceding tax return and the date when taxes accrue to the Department for the present return, and that is eligible to be claimed, or could be eligible to be claimed if the stamping agent kept accounts on an accrual basis, as a deduction pursuant to § 166 of the Internal Revenue Code. A bad debt shall not include (i) any interest on the wholesale price of cigarettes, (ii) uncollectible amounts on property that remains in the possession of the stamping agent until the full purchase price is paid, (iii) expenses incurred in attempting to collect any account receivable or any portion of the debt recovered, (iv) any accounts receivable that have been sold to a third party for collection, and (v) repossessed property.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3"}},"ancestry":[{"id":13519,"edition_id":1,"name":"Excise Tax","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13518,"metadata":{},"date_created":"2026-06-26 03:45:07","date_modified":"2026-06-26 03:45:07","permalink":{"id":252141,"object_type":"structure","relational_id":13519,"identifier":"1","token":"58.1\/I\/10\/1","url":"\/58.1\/I\/10\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13518,"edition_id":1,"name":"Cigarette Tax","identifier":"10","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:45:07","date_modified":"2026-06-26 03:45:07","permalink":{"id":252139,"object_type":"structure","relational_id":13518,"identifier":"10","token":"58.1\/I\/10","url":"\/58.1\/I\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":77273,"structure_id":13519,"section_number":"58.1-1000","catch_line":"Definitions","url":"\/58.1-1000\/","token":"58.1\/I\/10\/1\/58.1-1000","metadata":false},{"id":66865,"structure_id":13519,"section_number":"58.1-1001","catch_line":"Tax levied; rate","url":"\/58.1-1001\/","token":"58.1\/I\/10\/1\/58.1-1001","metadata":false},{"id":59151,"structure_id":13519,"section_number":"58.1-1002","catch_line":"Exemptions","url":"\/58.1-1002\/","token":"58.1\/I\/10\/1\/58.1-1002","metadata":false},{"id":87038,"structure_id":13519,"section_number":"58.1-1003","catch_line":"How paid; affixing of stamps; records of stamping agents; civil penalties","url":"\/58.1-1003\/","token":"58.1\/I\/10\/1\/58.1-1003","metadata":false},{"id":59885,"structure_id":13519,"section_number":"58.1-1003.1","catch_line":"Bad debt; deduction; definition","url":"\/58.1-1003.1\/","token":"58.1\/I\/10\/1\/58.1-1003.1","metadata":false},{"id":81469,"structure_id":13519,"section_number":"58.1-1003.2","catch_line":"Roll-your-own tobacco cigarette excise tax; how paid; stamping process; records of stamping agents","url":"\/58.1-1003.2\/","token":"58.1\/I\/10\/1\/58.1-1003.2","metadata":false},{"id":54770,"structure_id":13519,"section_number":"58.1-1003.3","catch_line":"Roll-your-own cigarette machines","url":"\/58.1-1003.3\/","token":"58.1\/I\/10\/1\/58.1-1003.3","metadata":false},{"id":80220,"structure_id":13519,"section_number":"58.1-1004","catch_line":"Repealed","url":"\/58.1-1004\/","token":"58.1\/I\/10\/1\/58.1-1004","metadata":false},{"id":72178,"structure_id":13519,"section_number":"58.1-1006","catch_line":"Forms and kinds of containers, methods of breaking packages, and methods of affixing stamps; 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unlawful sale or purchase of stamps a felony; penalty","url":"\/58.1-1009\/","token":"58.1\/I\/10\/1\/58.1-1009","metadata":false},{"id":74606,"structure_id":13519,"section_number":"58.1-1010","catch_line":"Sale of unstamped cigarettes by wholesale dealers; penalty","url":"\/58.1-1010\/","token":"58.1\/I\/10\/1\/58.1-1010","metadata":false},{"id":71635,"structure_id":13519,"section_number":"58.1-1011","catch_line":"Qualification for permit to affix Virginia revenue stamps; penalty","url":"\/58.1-1011\/","token":"58.1\/I\/10\/1\/58.1-1011","metadata":false},{"id":65159,"structure_id":13519,"section_number":"58.1-1012","catch_line":"Duties of wholesale dealer, manufacturer and exclusive distributor on shipping, delivering or sending out cigarettes","url":"\/58.1-1012\/","token":"58.1\/I\/10\/1\/58.1-1012","metadata":false},{"id":69266,"structure_id":13519,"section_number":"58.1-1013","catch_line":"Penalty for failing to affix stamps; subsequent violations of article","url":"\/58.1-1013\/","token":"58.1\/I\/10\/1\/58.1-1013","metadata":false},{"id":84078,"structure_id":13519,"section_number":"58.1-1014","catch_line":"Repealed","url":"\/58.1-1014\/","token":"58.1\/I\/10\/1\/58.1-1014","metadata":false},{"id":75931,"structure_id":13519,"section_number":"58.1-1015","catch_line":"Removal, reuse, unauthorized sale, etc., of stamps; 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This law was first created in 2006. The record of its establishment is cataloged in chapters 64<\/a> and 229<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":87038,"section_number":"58.1-1003","catch_line":"How paid; affixing of stamps; records of stamping agents; civil penalties","order_by":null,"url":"\/58.1-1003\/"}],"refers_to":false,"permalink":{"id":252159,"object_type":"law","relational_id":59885,"identifier":"58.1-1003.1","token":"58.1\/I\/10\/1\/58.1-1003.1","url":"\/58.1-1003.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-1003.1\/","token":"58.1\/I\/10\/1\/58.1-1003.1","dublin_core":{"Title":"Bad debt; deduction; definition","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-1003.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any stamping agent<\/span> may deduct the amount of bad debts<\/span> from the tax imposed by this chapter. The amount deducted shall be charged off as uncollectible on the books of the stamping agent<\/span>. If a person pays all or part of a bad debt<\/span> that a stamping agent<\/span> claimed as a deduction under this section, the stamping agent<\/span> shall be liable for the amount of taxes deducted in connection with that portion of the debt for which payment is received and shall remit these taxes together with its next report to the Department<\/span> pursuant to subsection C of § 58.1-1003<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any claim for a bad debt<\/span> deduction under this section shall be supported by all of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A copy of the original invoice; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Evidence<\/span> that the cigarettes<\/span> described in the invoice were delivered to the person who ordered them; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Evidence<\/span> that the person who ordered and received the cigarettes<\/span> did not pay the stamping agent<\/span> for the cigarettes<\/span> and that the stamping agent<\/span> used reasonable collection practices in attempting to collect the debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> As used in this section, “bad debt<\/span>” means the taxes under this chapter attributable to any portion of a debt that is related to a sale of cigarettes<\/span> subject to tax under this chapter that is not otherwise deductible or excludable, that has become worthless or uncollectible in the time period between the date when taxes accrue to the Department<\/span> for the stamping agents<\/span>’ preceding tax return and the date when taxes accrue to the Department<\/span> for the present return, and that is eligible to be claimed, or could be eligible to be claimed if the stamping agent<\/span> kept accounts on an accrual basis, as a deduction pursuant to § 166 of the Internal Revenue Code. A bad debt<\/span> shall not include (i) any interest on the wholesale price of cigarettes<\/span>, (ii) uncollectible amounts on property that remains in the possession<\/span> of the stamping agent<\/span> until the full purchase price is paid, (iii) expenses incurred in attempting to collect any account receivable or any portion of the debt recovered, (iv) any accounts receivable that have been sold to a third party<\/span> for collection, and (v) repossessed property. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBAD DEBT; DEDUCTION; DEFINITION (\u00a7 58.1-1003.1)\n\nA. Any stamping agent may deduct the amount of bad debts from the tax imposed by\nthis chapter. The amount deducted shall be charged off as uncollectible on the\nbooks of the stamping agent. If a person pays all or part of a bad debt that a\nstamping agent claimed as a deduction under this section, the stamping agent\nshall be liable for the amount of taxes deducted in connection with that portion\nof the debt for which payment is received and shall remit these taxes together\nwith its next report to the Department pursuant to subsection C of §\n58.1-1003.\n\nB. Any claim for a bad debt deduction under this section shall be supported by\nall of the following:\n\n 1. A copy of the original invoice;\n\n 2. Evidence that the cigarettes described in the invoice were delivered to the\n person who ordered them; and\n\n 3. Evidence that the person who ordered and received the cigarettes did not\n pay the stamping agent for the cigarettes and that the stamping agent used\n reasonable collection practices in attempting to collect the debt.\n\nC. As used in this section, “bad debt” means the taxes under this\nchapter attributable to any portion of a debt that is related to a sale of\ncigarettes subject to tax under this chapter that is not otherwise deductible or\nexcludable, that has become worthless or uncollectible in the time period\nbetween the date when taxes accrue to the Department for the stamping\nagents’ preceding tax return and the date when taxes accrue to the\nDepartment for the present return, and that is eligible to be claimed, or could\nbe eligible to be claimed if the stamping agent kept accounts on an accrual\nbasis, as a deduction pursuant to § 166 of the Internal Revenue Code. A bad\ndebt shall not include (i) any interest on the wholesale price of cigarettes,\n(ii) uncollectible amounts on property that remains in the possession of the\nstamping agent until the full purchase price is paid, (iii) expenses incurred in\nattempting to collect any account receivable or any portion of the debt\nrecovered, (iv) any accounts receivable that have been sold to a third party for\ncollection, and (v) repossessed property.\n\nHISTORY: 2006, cc. 64, 229.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}