{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-1009.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-1009.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-1009.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-1009.html"}],"law_id":85003,"edition_id":1,"section_id":85003,"structure_id":13519,"section_number":"58.1-1009","catch_line":"Preparation, design, and sale of stamps; unlawful sale or purchase of stamps a felony; penalty","history":"Code 1950, \u00a7\u00a7 58-757.8, 58-757.10; 1960, c. 392, \u00a7\u00a7 8, 10; 1973, c. 3; 1984, c. 675; 2000, cc. 880, 901; 2002, cc. 683, 722, 821; 2004, c. 1029; 2004, Sp. Sess. I, c. 3; 2005, c. 925; 2013, cc. 311, 381, 389.","full_text":"A\n\nThe Department is hereby authorized and directed to have prepared and to sell stamps suitable for denoting the tax on all cigarettes. The Department shall design, adopt and promulgate the form and kind of stamps to be used and may allow for electronic purchase and payment when selling such stamps. Stamps so adopted and promulgated shall be known as and termed “Virginia revenue stamps,” and in any information or indictment, it shall be sufficient to describe the stamps as “Virginia revenue stamps.”\n\t\t\tAny person other than the Department who sells such revenue stamps, not affixed to cigarettes sold and delivered by them, whether the said stamps be genuine or counterfeit, shall be guilty of a Class 6 felony. Any person who purchases revenue stamps from anyone other than the Department, unless such stamps are already affixed to cigarettes being purchased by and delivered to him, or who uses or affixes, or causes to be used or affixed, any revenue stamps not purchased from the Department by the owner of the cigarettes being handled or stamped, whether such stamps are genuine or counterfeit, shall be guilty of a Class 6 felony. When stamping agents have qualified as such with the Department, as provided in § 58.1-1011, and purchase stamps as prescribed herein for use on taxable cigarettes sold and delivered by them, the Department shall allow to each stamping agent on such sales of revenue stamps a discount equal to two percent of the total charged to the stamping agent by the Department for the purchase of the revenue stamps. The Tax Commissioner shall prepare for each fiscal year an estimate of the total amount of all discounts allowed to stamping agents pursuant to this subsection and such amount shall be taken into consideration in preparing the official estimate of the total revenues to be collected during the fiscal year by the Virginia Health Care Fund established under § 32.1-366. Any reduction in funding available for programs financed by the Virginia Health Care Fund as a result of such discounts shall be made up by the general fund.\n\t\t\tAll stamps prescribed by the Department shall be designed and furnished in such a fashion as to permit identification of the wholesale dealer or retail dealer that affixed the stamp to the particular package of cigarettes, by means of a serial number or other mark on the stamp. The Department shall maintain for not less than three years information identifying which wholesale dealer or retail dealer affixed the revenue stamp to each package of cigarettes.B\n\n1. The Department shall provide Virginia revenue stamps to certain wholesale dealers holding a current permit issued pursuant to \u00a7 58.1-1011 prior to collecting the tax imposed under this chapter from such wholesale dealer. Such wholesale dealers shall be allowed to obtain the stamps from the Department without concurrent payment of the tax only if the conditions of this subsection are satisfied.\n\t\t\tIn order to obtain Virginia revenue stamps without concurrent payment of the tax imposed under this chapter, a wholesale dealer shall (i) file a bond with a corporate surety licensed to do business in Virginia, or (ii) file an irrevocable letter of credit satisfactory to the Tax Commissioner as to the bank or savings institution, the form and substance, and payable to the Commonwealth in a face amount determined by the Tax Commissioner to be satisfactory to cover possible losses resulting from the failure to remit taxes due but not exceeding two times the anticipated average monthly amount in purchases of Virginia revenue stamps by the wholesale dealer as determined by the Commissioner. The letter of credit shall be from a bank incorporated or authorized to conduct banking business under the laws of the Commonwealth or authorized to do business in the Commonwealth under the banking laws of the United States, or a federally insured savings institution located in the Commonwealth. Such bond or irrevocable letter of credit shall be conditioned upon payment of the tax imposed by this chapter relating to Virginia revenue stamps obtained by the wholesale dealer from the Department (without concurrent payment of the tax) for which such tax, net of any applicable discount described in subsection A, shall be paid within the 30 days immediately following the date that the related revenue stamp or stamps were provided by the Department to such wholesale dealer. Any such bond shall be so written that, on timely payment of the premium thereon, it shall continue in force from year to year unless sooner terminated.2\n\nAny surety on a bond filed by any wholesale dealer shall be released and discharged from any and all liability to the Commonwealth accruing on such bond after the expiration of 60 days from the date upon which such surety shall have lodged with the Commissioner written request to be released and discharged. But such request shall not operate to relieve, release or discharge such surety from any liability already accrued or which shall accrue before the expiration of such 60-day period. The Commissioner shall, promptly on receipt of such notice, notify the wholesale dealer who furnished such bond. Unless such dealer on or before the expiration of such 60 days’ notice files with the Commissioner a new bond or letter of credit that meets all the conditions described in subdivision 1, the Commissioner shall forthwith require the wholesale dealer to pay the tax imposed under this chapter concurrent with obtaining revenue stamps from the Department.\n\t\t\t\tIn the event that liability upon the bond or letter of credit filed by the wholesale dealer with the Commissioner shall be discharged or reduced, whether by judgment rendered, payment made or otherwise, or if in the opinion of the Commissioner any surety on the bond becomes unsatisfactory or unacceptable, then the Commissioner may require the filing of a new bond or letter of credit. Unless such new bond or letter of credit meets all the conditions described in subdivision 1, the Commissioner shall forthwith require the wholesale dealer to pay the tax imposed under this chapter concurrent with obtaining revenue stamps from the Department.3\n\nNotwithstanding any other provision in this subsection, the Tax Commissioner, for good cause, shall require a wholesale dealer to pay the tax imposed under this chapter concurrent with obtaining revenue stamps from the Department, regardless of whether or not such dealer has filed or agreed to file the bond or letter of credit described in this subsection.C\n\nIn addition to any other penalties provided by law, the Department may revoke the permit issued, in accordance with § 58.1-1011, to any person who violates any provision of this section.","order_by":null,"text":{"0":{"id":304701,"text":"The Department is hereby authorized and directed to have prepared and to sell stamps suitable for denoting the tax on all cigarettes. The Department shall design, adopt and promulgate the form and kind of stamps to be used and may allow for electronic purchase and payment when selling such stamps. Stamps so adopted and promulgated shall be known as and termed “Virginia revenue stamps,” and in any information or indictment, it shall be sufficient to describe the stamps as “Virginia revenue stamps.”\n\t\t\tAny person other than the Department who sells such revenue stamps, not affixed to cigarettes sold and delivered by them, whether the said stamps be genuine or counterfeit, shall be guilty of a Class 6 felony. Any person who purchases revenue stamps from anyone other than the Department, unless such stamps are already affixed to cigarettes being purchased by and delivered to him, or who uses or affixes, or causes to be used or affixed, any revenue stamps not purchased from the Department by the owner of the cigarettes being handled or stamped, whether such stamps are genuine or counterfeit, shall be guilty of a Class 6 felony. When stamping agents have qualified as such with the Department, as provided in § 58.1-1011, and purchase stamps as prescribed herein for use on taxable cigarettes sold and delivered by them, the Department shall allow to each stamping agent on such sales of revenue stamps a discount equal to two percent of the total charged to the stamping agent by the Department for the purchase of the revenue stamps. The Tax Commissioner shall prepare for each fiscal year an estimate of the total amount of all discounts allowed to stamping agents pursuant to this subsection and such amount shall be taken into consideration in preparing the official estimate of the total revenues to be collected during the fiscal year by the Virginia Health Care Fund established under § 32.1-366. Any reduction in funding available for programs financed by the Virginia Health Care Fund as a result of such discounts shall be made up by the general fund.\n\t\t\tAll stamps prescribed by the Department shall be designed and furnished in such a fashion as to permit identification of the wholesale dealer or retail dealer that affixed the stamp to the particular package of cigarettes, by means of a serial number or other mark on the stamp. The Department shall maintain for not less than three years information identifying which wholesale dealer or retail dealer affixed the revenue stamp to each package of cigarettes.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":304702,"text":"1. The Department shall provide Virginia revenue stamps to certain wholesale dealers holding a current permit issued pursuant to \u00a7 58.1-1011 prior to collecting the tax imposed under this chapter from such wholesale dealer. Such wholesale dealers shall be allowed to obtain the stamps from the Department without concurrent payment of the tax only if the conditions of this subsection are satisfied.\n\t\t\tIn order to obtain Virginia revenue stamps without concurrent payment of the tax imposed under this chapter, a wholesale dealer shall (i) file a bond with a corporate surety licensed to do business in Virginia, or (ii) file an irrevocable letter of credit satisfactory to the Tax Commissioner as to the bank or savings institution, the form and substance, and payable to the Commonwealth in a face amount determined by the Tax Commissioner to be satisfactory to cover possible losses resulting from the failure to remit taxes due but not exceeding two times the anticipated average monthly amount in purchases of Virginia revenue stamps by the wholesale dealer as determined by the Commissioner. The letter of credit shall be from a bank incorporated or authorized to conduct banking business under the laws of the Commonwealth or authorized to do business in the Commonwealth under the banking laws of the United States, or a federally insured savings institution located in the Commonwealth. Such bond or irrevocable letter of credit shall be conditioned upon payment of the tax imposed by this chapter relating to Virginia revenue stamps obtained by the wholesale dealer from the Department (without concurrent payment of the tax) for which such tax, net of any applicable discount described in subsection A, shall be paid within the 30 days immediately following the date that the related revenue stamp or stamps were provided by the Department to such wholesale dealer. Any such bond shall be so written that, on timely payment of the premium thereon, it shall continue in force from year to year unless sooner terminated.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":304703,"text":"Any surety on a bond filed by any wholesale dealer shall be released and discharged from any and all liability to the Commonwealth accruing on such bond after the expiration of 60 days from the date upon which such surety shall have lodged with the Commissioner written request to be released and discharged. But such request shall not operate to relieve, release or discharge such surety from any liability already accrued or which shall accrue before the expiration of such 60-day period. The Commissioner shall, promptly on receipt of such notice, notify the wholesale dealer who furnished such bond. Unless such dealer on or before the expiration of such 60 days’ notice files with the Commissioner a new bond or letter of credit that meets all the conditions described in subdivision 1, the Commissioner shall forthwith require the wholesale dealer to pay the tax imposed under this chapter concurrent with obtaining revenue stamps from the Department.\n\t\t\t\tIn the event that liability upon the bond or letter of credit filed by the wholesale dealer with the Commissioner shall be discharged or reduced, whether by judgment rendered, payment made or otherwise, or if in the opinion of the Commissioner any surety on the bond becomes unsatisfactory or unacceptable, then the Commissioner may require the filing of a new bond or letter of credit. Unless such new bond or letter of credit meets all the conditions described in subdivision 1, the Commissioner shall forthwith require the wholesale dealer to pay the tax imposed under this chapter concurrent with obtaining revenue stamps from the Department.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":304704,"text":"Notwithstanding any other provision in this subsection, the Tax Commissioner, for good cause, shall require a wholesale dealer to pay the tax imposed under this chapter concurrent with obtaining revenue stamps from the Department, regardless of whether or not such dealer has filed or agreed to file the bond or letter of credit described in this subsection.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"4":{"id":304705,"text":"In addition to any other penalties provided by law, the Department may revoke the permit issued, in accordance with § 58.1-1011, to any person who violates any provision of this section.","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; penalty for interfering with enforcement of article","url":"\/58.1-1006\/","token":"58.1\/I\/10\/1\/58.1-1006","metadata":false},{"id":79368,"structure_id":13519,"section_number":"58.1-1007","catch_line":"Documents touching purchase, sale, etc., of cigarettes to be kept for three years, subject to inspection; penalty","url":"\/58.1-1007\/","token":"58.1\/I\/10\/1\/58.1-1007","metadata":false},{"id":79929,"structure_id":13519,"section_number":"58.1-1008","catch_line":"Monthly reports of stamping agents; penalty","url":"\/58.1-1008\/","token":"58.1\/I\/10\/1\/58.1-1008","metadata":false},{"id":69294,"structure_id":13519,"section_number":"58.1-1008.1","catch_line":"Monthly reports of tobacco product manufacturers","url":"\/58.1-1008.1\/","token":"58.1\/I\/10\/1\/58.1-1008.1","metadata":false},{"id":73457,"structure_id":13519,"section_number":"58.1-1008.2","catch_line":"Materially false statements in reports","url":"\/58.1-1008.2\/","token":"58.1\/I\/10\/1\/58.1-1008.2","metadata":false},{"id":85003,"structure_id":13519,"section_number":"58.1-1009","catch_line":"Preparation, design, and sale of stamps; 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; counterfeit stamps; seizure and forfeiture; penalties","url":"\/58.1-1015\/","token":"58.1\/I\/10\/1\/58.1-1015","metadata":false},{"id":54487,"structure_id":13519,"section_number":"58.1-1016","catch_line":"Administration and enforcement of tax","url":"\/58.1-1016\/","token":"58.1\/I\/10\/1\/58.1-1016","metadata":false},{"id":61506,"structure_id":13519,"section_number":"58.1-1017","catch_line":"Sale, purchase, possession, etc., of cigarettes for purpose of evading tax; penalties","url":"\/58.1-1017\/","token":"58.1\/I\/10\/1\/58.1-1017","metadata":false},{"id":83402,"structure_id":13519,"section_number":"58.1-1017.1","catch_line":"Possession with intent to distribute tax-paid, contraband cigarettes; penalties","url":"\/58.1-1017.1\/","token":"58.1\/I\/10\/1\/58.1-1017.1","metadata":false},{"id":55198,"structure_id":13519,"section_number":"58.1-1017.2","catch_line":"Sealed pack labeled as cigarettes; prima facie evidence of cigarettes","url":"\/58.1-1017.2\/","token":"58.1\/I\/10\/1\/58.1-1017.2","metadata":false},{"id":66807,"structure_id":13519,"section_number":"58.1-1017.3","catch_line":"Fraudulent purchase of cigarettes; penalties","url":"\/58.1-1017.3\/","token":"58.1\/I\/10\/1\/58.1-1017.3","metadata":false},{"id":82681,"structure_id":13519,"section_number":"58.1-1017.4","catch_line":"Documents to be provided at purchase","url":"\/58.1-1017.4\/","token":"58.1\/I\/10\/1\/58.1-1017.4","metadata":false}],"previous_section":{"id":73457,"structure_id":13519,"section_number":"58.1-1008.2","catch_line":"Materially false statements in reports","url":"\/58.1-1008.2\/","token":"58.1\/I\/10\/1\/58.1-1008.2","metadata":false},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-1009\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 8 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1960, chapter 392; in 1973, chapter 3; in 1984, chapter 675; in 2000, chapters 880<\/a> and 901<\/a>; in 2002, chapters 683<\/a>, 722<\/a>, and 821<\/a>; in 2004, chapter 1029<\/a>; in 2005, chapter 925<\/a>; in 2013, chapters 311<\/a>, 381<\/a>, and 389<\/a>.<\/p>","references":false,"refers_to":[{"id":73778,"section_number":"32.1-366","catch_line":"Virginia Health Care Fund established","order_by":null,"url":"\/32.1-366\/"},{"id":71635,"section_number":"58.1-1011","catch_line":"Qualification for permit to affix Virginia revenue stamps; penalty","order_by":null,"url":"\/58.1-1011\/"}],"permalink":{"id":252195,"object_type":"law","relational_id":85003,"identifier":"58.1-1009","token":"58.1\/I\/10\/1\/58.1-1009","url":"\/58.1-1009\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-1009\/","token":"58.1\/I\/10\/1\/58.1-1009","dublin_core":{"Title":"Preparation, design, and sale of stamps; unlawful sale or purchase of stamps a felony; penalty","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-1009","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Department<\/span> is hereby authorized and directed to have prepared and to sell stamps<\/span> suitable for denoting the tax on all cigarettes<\/span>. The Department<\/span> shall design, adopt and promulgate the form and kind of stamps<\/span> to be used and may allow for electronic purchase and payment when selling such stamps<\/span>. Stamps<\/span> so adopted and promulgated shall be known as and termed “Virginia revenue stamps<\/span>,” and in any information or indictment<\/span>, it shall be sufficient to describe the stamps<\/span> as “Virginia revenue stamps<\/span>.”\n\t\t\tAny person other than the Department<\/span> who sells such revenue stamps<\/span>, not affixed to cigarettes<\/span> sold and delivered by them, whether the said stamps<\/span> be genuine or counterfeit, shall be guilty of a Class 6 felony<\/span>. Any person who purchases revenue stamps<\/span> from anyone other than the Department<\/span>, unless such stamps<\/span> are already affixed to cigarettes<\/span> being purchased by and delivered to him, or who uses<\/span> or affixes, or causes to be used or affixed, any revenue stamps<\/span> not purchased from the Department<\/span> by the owner of the cigarettes<\/span> being handled or stamped, whether such stamps<\/span> are genuine or counterfeit, shall be guilty of a Class 6 felony<\/span>. When stamping agents<\/span> have qualified as such with the Department<\/span>, as provided in § 58.1-1011<\/a>, and purchase stamps<\/span> as prescribed herein for use<\/span> on taxable cigarettes<\/span> sold and delivered by them, the Department<\/span> shall allow to each stamping agent<\/span> on such sales of revenue stamps<\/span> a discount equal to two percent of the total charged to the stamping agent<\/span> by the Department<\/span> for the purchase of the revenue stamps<\/span>. The Tax Commissioner<\/span> shall prepare for each fiscal year an estimate of the total amount of all discounts allowed to stamping agents<\/span> pursuant to this subsection and such amount shall be taken into consideration in preparing the official estimate of the total revenues to be collected during the fiscal year by the Virginia Health Care Fund established under § 32.1-366<\/a>. Any reduction in funding available for programs financed by the Virginia Health Care Fund as a result of such discounts shall be made up by the general fund.\n\t\t\tAll stamps<\/span> prescribed by the Department<\/span> shall be designed and furnished in such a fashion as to permit identification of the wholesale dealer<\/span> or retail dealer<\/span> that affixed the stamp to the particular package of cigarettes<\/span>, by means of a serial number or other mark on the stamp. The Department<\/span> shall maintain for not less than three years information identifying which wholesale dealer<\/span> or retail dealer<\/span> affixed the revenue stamp to each package of cigarettes<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. The Department<\/span> shall provide Virginia revenue stamps<\/span> to certain wholesale dealers<\/span> holding a current permit issued pursuant to \u00a7 58.1-1011<\/a> prior to collecting the tax imposed under this chapter from such wholesale dealer<\/span>. Such wholesale dealers<\/span> shall be allowed to obtain the stamps<\/span> from the Department<\/span> without concurrent payment of the tax only if the conditions of this subsection are satisfied.\n\t\t\tIn order<\/span> to obtain Virginia revenue stamps<\/span> without concurrent payment of the tax imposed under this chapter, a wholesale dealer<\/span> shall (i) file a bond<\/span> with a corporate surety<\/span> licensed to do business in Virginia, or (ii) file an irrevocable letter of credit satisfactory to the Tax Commissioner<\/span> as to the bank or savings institution, the form and substance, and payable to the Commonwealth in a face amount determined by the Tax Commissioner<\/span> to be satisfactory to cover possible losses resulting from the failure to remit taxes due but not exceeding two times the anticipated average monthly amount in purchases of Virginia revenue stamps<\/span> by the wholesale dealer<\/span> as determined by the Commissioner. The letter of credit shall be from a bank incorporated or authorized to conduct banking business under the laws<\/span> of the Commonwealth or authorized to do business in the Commonwealth under the banking laws<\/span> of the United States, or a federally insured savings institution located in the Commonwealth. Such bond<\/span> or irrevocable letter of credit shall be conditioned upon payment of the tax imposed by this chapter relating to Virginia revenue stamps<\/span> obtained by the wholesale dealer<\/span> from the Department<\/span> (without concurrent payment of the tax) for which such tax, net of any applicable discount described in subsection A, shall be paid within the 30 days immediately following the date that the related revenue stamp or stamps<\/span> were provided by the Department<\/span> to such wholesale dealer<\/span>. Any such bond<\/span> shall be so written that, on timely payment of the premium thereon, it shall continue in force from year to year unless sooner terminated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any surety<\/span> on a bond<\/span> filed by any wholesale dealer<\/span> shall be released and discharged from any and all liability to the Commonwealth accruing on such bond<\/span> after the expiration of 60 days from the date upon which such surety<\/span> shall have lodged with the Commissioner written request to be released and discharged. But such request shall not operate to relieve, release or discharge such surety<\/span> from any liability already accrued or which shall accrue before the expiration of such 60-day period. The Commissioner shall, promptly on receipt of such notice, notify the wholesale dealer<\/span> who furnished such bond<\/span>. Unless such dealer on or before the expiration of such 60 days’ notice files with the Commissioner a new bond<\/span> or letter of credit that meets all the conditions described in subdivision 1, the Commissioner shall forthwith require the wholesale dealer<\/span> to pay the tax imposed under this chapter concurrent with obtaining revenue stamps<\/span> from the Department<\/span>.\n\t\t\t\tIn the event that liability upon the bond<\/span> or letter of credit filed by the wholesale dealer<\/span> with the Commissioner shall be discharged or reduced, whether by judgment<\/span> rendered, payment made or otherwise, or if in the opinion<\/span> of the Commissioner any surety<\/span> on the bond<\/span> becomes unsatisfactory or unacceptable, then the Commissioner may require the filing of a new bond<\/span> or letter of credit. Unless such new bond<\/span> or letter of credit meets all the conditions described in subdivision 1, the Commissioner shall forthwith require the wholesale dealer<\/span> to pay the tax imposed under this chapter concurrent with obtaining revenue stamps<\/span> from the Department<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Notwithstanding any other provision in this subsection, the Tax Commissioner<\/span>, for good cause, shall require a wholesale dealer<\/span> to pay the tax imposed under this chapter concurrent with obtaining revenue stamps<\/span> from the Department<\/span>, regardless of whether or not such dealer has filed or agreed to file the bond<\/span> or letter of credit described in this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In addition to any other penalties provided by law<\/span>, the Department<\/span> may revoke the permit issued, in accordance with § 58.1-1011<\/a>, to any person who violates any provision of this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPREPARATION, DESIGN, AND SALE OF STAMPS; UNLAWFUL SALE OR PURCHASE OF STAMPS A\nFELONY; PENALTY (\u00a7 58.1-1009)\n\nA. The Department is hereby authorized and directed to have prepared and to sell\nstamps suitable for denoting the tax on all cigarettes. The Department shall\ndesign, adopt and promulgate the form and kind of stamps to be used and may\nallow for electronic purchase and payment when selling such stamps. Stamps so\nadopted and promulgated shall be known as and termed “Virginia revenue\nstamps,” and in any information or indictment, it shall be sufficient to\ndescribe the stamps as “Virginia revenue stamps.”\n\t\t\tAny person other than the Department who sells such revenue stamps, not\naffixed to cigarettes sold and delivered by them, whether the said stamps be\ngenuine or counterfeit, shall be guilty of a Class 6 felony. Any person who\npurchases revenue stamps from anyone other than the Department, unless such\nstamps are already affixed to cigarettes being purchased by and delivered to\nhim, or who uses or affixes, or causes to be used or affixed, any revenue stamps\nnot purchased from the Department by the owner of the cigarettes being handled\nor stamped, whether such stamps are genuine or counterfeit, shall be guilty of a\nClass 6 felony. When stamping agents have qualified as such with the Department,\nas provided in § 58.1-1011, and purchase stamps as prescribed herein for\nuse on taxable cigarettes sold and delivered by them, the Department shall allow\nto each stamping agent on such sales of revenue stamps a discount equal to two\npercent of the total charged to the stamping agent by the Department for the\npurchase of the revenue stamps. The Tax Commissioner shall prepare for each\nfiscal year an estimate of the total amount of all discounts allowed to stamping\nagents pursuant to this subsection and such amount shall be taken into\nconsideration in preparing the official estimate of the total revenues to be\ncollected during the fiscal year by the Virginia Health Care Fund established\nunder § 32.1-366. Any reduction in funding available for programs financed\nby the Virginia Health Care Fund as a result of such discounts shall be made up\nby the general fund.\n\t\t\tAll stamps prescribed by the Department shall be designed and furnished in\nsuch a fashion as to permit identification of the wholesale dealer or retail\ndealer that affixed the stamp to the particular package of cigarettes, by means\nof a serial number or other mark on the stamp. The Department shall maintain for\nnot less than three years information identifying which wholesale dealer or\nretail dealer affixed the revenue stamp to each package of cigarettes.\n\nB. 1. The Department shall provide Virginia revenue stamps to certain wholesale\ndealers holding a current permit issued pursuant to \u00a7 58.1-1011 prior to\ncollecting the tax imposed under this chapter from such wholesale dealer. Such\nwholesale dealers shall be allowed to obtain the stamps from the Department\nwithout concurrent payment of the tax only if the conditions of this subsection\nare satisfied.\n\t\t\tIn order to obtain Virginia revenue stamps without concurrent payment of the\ntax imposed under this chapter, a wholesale dealer shall (i) file a bond with a\ncorporate surety licensed to do business in Virginia, or (ii) file an\nirrevocable letter of credit satisfactory to the Tax Commissioner as to the bank\nor savings institution, the form and substance, and payable to the Commonwealth\nin a face amount determined by the Tax Commissioner to be satisfactory to cover\npossible losses resulting from the failure to remit taxes due but not exceeding\ntwo times the anticipated average monthly amount in purchases of Virginia\nrevenue stamps by the wholesale dealer as determined by the Commissioner. The\nletter of credit shall be from a bank incorporated or authorized to conduct\nbanking business under the laws of the Commonwealth or authorized to do business\nin the Commonwealth under the banking laws of the United States, or a federally\ninsured savings institution located in the Commonwealth. Such bond or\nirrevocable letter of credit shall be conditioned upon payment of the tax\nimposed by this chapter relating to Virginia revenue stamps obtained by the\nwholesale dealer from the Department (without concurrent payment of the tax) for\nwhich such tax, net of any applicable discount described in subsection A, shall\nbe paid within the 30 days immediately following the date that the related\nrevenue stamp or stamps were provided by the Department to such wholesale\ndealer. Any such bond shall be so written that, on timely payment of the premium\nthereon, it shall continue in force from year to year unless sooner terminated.\n\n 2. Any surety on a bond filed by any wholesale dealer shall be released and\n discharged from any and all liability to the Commonwealth accruing on such\n bond after the expiration of 60 days from the date upon which such surety\n shall have lodged with the Commissioner written request to be released and\n discharged. But such request shall not operate to relieve, release or\n discharge such surety from any liability already accrued or which shall accrue\n before the expiration of such 60-day period. The Commissioner shall, promptly\n on receipt of such notice, notify the wholesale dealer who furnished such\n bond. Unless such dealer on or before the expiration of such 60 days’\n notice files with the Commissioner a new bond or letter of credit that meets\n all the conditions described in subdivision 1, the Commissioner shall\n forthwith require the wholesale dealer to pay the tax imposed under this\n chapter concurrent with obtaining revenue stamps from the Department.\n \t\t\t\tIn the event that liability upon the bond or letter of credit filed by the\n wholesale dealer with the Commissioner shall be discharged or reduced, whether\n by judgment rendered, payment made or otherwise, or if in the opinion of the\n Commissioner any surety on the bond becomes unsatisfactory or unacceptable,\n then the Commissioner may require the filing of a new bond or letter of\n credit. Unless such new bond or letter of credit meets all the conditions\n described in subdivision 1, the Commissioner shall forthwith require the\n wholesale dealer to pay the tax imposed under this chapter concurrent with\n obtaining revenue stamps from the Department.\n\n 3. Notwithstanding any other provision in this subsection, the Tax\n Commissioner, for good cause, shall require a wholesale dealer to pay the tax\n imposed under this chapter concurrent with obtaining revenue stamps from the\n Department, regardless of whether or not such dealer has filed or agreed to\n file the bond or letter of credit described in this subsection.\n\nC. In addition to any other penalties provided by law, the Department may revoke\nthe permit issued, in accordance with § 58.1-1011, to any person who\nviolates any provision of this section.\n\nHISTORY: Code 1950, \u00a7\u00a7 58-757.8, 58-757.10; 1960, c. 392, \u00a7\u00a7 8, 10; 1973, c.\n3; 1984, c. 675; 2000, cc. 880, 901; 2002, cc. 683, 722, 821; 2004, c. 1029;\n2004, Sp. Sess. I, c. 3; 2005, c. 925; 2013, cc. 311, 381, 389.","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}}