{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-1021.02.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-1021.02.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-1021.02.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-1021.02.html"}],"law_id":77407,"edition_id":1,"section_id":77407,"structure_id":14718,"section_number":"58.1-1021.02","catch_line":"Tax on tobacco products and liquid nicotine","history":"2004, Sp. Sess. I, c. 3; 2005, c. 71; 2010, cc. 191, 804; 2022, cc. 738, 779; 2024, cc. 796, 821.","full_text":"A\n\nIn addition to all other taxes now imposed by law, there is hereby imposed a tax upon the privilege of selling or dealing in tobacco products and liquid nicotine in the Commonwealth by any person engaged in business as a distributor or remote retail seller thereof, at the following rates:1\n\nUpon each package of moist snuff, at the rate of $0.18 per ounce with a proportionate tax at the same rate on all fractional parts of an ounce. The tax shall be computed based on the net weight as listed by the manufacturer on the package in accordance with federal law.2\n\nFor purposes of the tax under this article, loose leaf tobacco shall be classified as loose leaf tobacco single-units, loose leaf tobacco half pound-units, and loose leaf tobacco pound-units. Such tax shall be imposed upon the distributor for loose leaf tobacco as follows:\n\t\t\t\ta. $0.21 for each loose leaf tobacco single-unit;\n\t\t\t\tb. $0.40 for each loose leaf tobacco half pound-unit;\n\t\t\t\tc. $0.70 for each loose leaf tobacco pound-unit; and\n\t\t\t\td. For any other unit, pouch, or package of loose leaf tobacco, the tax shall be by net weight and shall be $0.21 per unit, pouch, or package plus $0.21 for each increment of four ounces or portion thereof that the loose leaf tobacco exceeds 16 ounces.\n\t\t\t\tThe tax for each unit, pouch, or package of loose leaf tobacco shall be in accordance with the provisions of subdivisions a through d only and regardless of sales price.3\n\nExcept as otherwise provided, upon tobacco products other than moist snuff or loose leaf tobacco, at the rate of 10 percent of the manufacturer’s sales price of such tobacco products.\n\t\t\t\tUpon cigars and pipe tobacco products sold by remote retail sellers, the tax rates delineated in this subdivision shall apply to:\n\t\t\t\ta. The actual cost; or\n\t\t\t\tb. If the actual cost is not available, the average of the actual cost over the 12 calendar months before January 1 of the year in which the sale occurs.4\n\na. Upon the privilege of selling or dealing in liquid nicotine in the Commonwealth by any person engaged in business as a distributor of liquid nicotine, at the following rates:1\n\nUpon liquid nicotine in closed systems at the rate of $0.066 per milliliter beginning July 1, 2024, for taxable sales or purchases occurring on and after such date.2\n\nUpon liquid nicotine in open systems at the rate of 10 percent of the wholesale price beginning July 1, 2024, for taxable sales or purchases occurring on and after such date.\n\t\t\t\t\tb. For any transaction involving liquid nicotine between a distributor and a retail dealer, both the distributor and the retail dealer shall maintain and retain records of any invoice or sales receipt that shall include itemized lists of the types of products included in such transaction, the tax due on each product pursuant to this subsection, and the total amount of taxes paid. In every instance, a distributor shall be responsible for paying the tax on liquid nicotine pursuant to this subdivision 4 at the time of sale to a retail dealer. Such taxes shall apply only to liquid nicotine and not to any batteries, filters, or other mechanical or aesthetic components of liquid nicotine in a closed system or an open system.\n\t\t\t\t\tSuch tax shall be imposed at the time the remote retail seller located within or outside the Commonwealth makes a remote retail sale to a consumer within the Commonwealth. It is the intent and purpose of this subdivision that the remote retail seller be liable for the tax. It is further the intent and purpose of this article to impose the tax once, and only once on all tobacco products, including cigars and pipe tobacco sold in the Commonwealth.\n\t\t\t\t\tExcept as otherwise provided, such tax shall be imposed on tobacco products (i) at the time of retail sale by a retail dealer or distributor; (ii) at the time the distributor makes, manufactures, or fabricates tobacco products in the Commonwealth for sale in the Commonwealth; or (iii) at the time the distributor ships or transports tobacco products to retailers in the Commonwealth to be sold by those retailers. It is the intent and purpose of this article that the distributor who first possesses the tobacco product subject to this tax in the Commonwealth shall be the distributor liable for the tax. It is further the intent and purpose of this article to impose the tax once and only once on all tobacco products for sale in the Commonwealth.B\n\nNo tax shall be imposed pursuant to this section upon tobacco products not within the taxing power of the Commonwealth under the Commerce Clause of the United States Constitution.C\n\nA distributor that calculates and pays the tax pursuant to subdivision A 1 or A 2 in good faith reliance on the net weight listed by the manufacturer on the package or on the manufacturer’s invoice shall not be liable for additional tax, or for interest or penalties, solely by reason of a subsequent determination that such weight information was incorrect.","order_by":null,"text":{"0":{"id":277677,"text":"In addition to all other taxes now imposed by law, there is hereby imposed a tax upon the privilege of selling or dealing in tobacco products and liquid nicotine in the Commonwealth by any person engaged in business as a distributor or remote retail seller thereof, at the following rates:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":277678,"text":"Upon each package of moist snuff, at the rate of $0.18 per ounce with a proportionate tax at the same rate on all fractional parts of an ounce. The tax shall be computed based on the net weight as listed by the manufacturer on the package in accordance with federal law.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":277679,"text":"For purposes of the tax under this article, loose leaf tobacco shall be classified as loose leaf tobacco single-units, loose leaf tobacco half pound-units, and loose leaf tobacco pound-units. Such tax shall be imposed upon the distributor for loose leaf tobacco as follows:\n\t\t\t\ta. $0.21 for each loose leaf tobacco single-unit;\n\t\t\t\tb. $0.40 for each loose leaf tobacco half pound-unit;\n\t\t\t\tc. $0.70 for each loose leaf tobacco pound-unit; and\n\t\t\t\td. For any other unit, pouch, or package of loose leaf tobacco, the tax shall be by net weight and shall be $0.21 per unit, pouch, or package plus $0.21 for each increment of four ounces or portion thereof that the loose leaf tobacco exceeds 16 ounces.\n\t\t\t\tThe tax for each unit, pouch, or package of loose leaf tobacco shall be in accordance with the provisions of subdivisions a through d only and regardless of sales price.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":277680,"text":"Except as otherwise provided, upon tobacco products other than moist snuff or loose leaf tobacco, at the rate of 10 percent of the manufacturer’s sales price of such tobacco products.\n\t\t\t\tUpon cigars and pipe tobacco products sold by remote retail sellers, the tax rates delineated in this subdivision shall apply to:\n\t\t\t\ta. The actual cost; or\n\t\t\t\tb. If the actual cost is not available, the average of the actual cost over the 12 calendar months before January 1 of the year in which the sale occurs.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":277681,"text":"a. Upon the privilege of selling or dealing in liquid nicotine in the Commonwealth by any person engaged in business as a distributor of liquid nicotine, at the following rates:","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A41"},"5":{"id":277682,"text":"Upon liquid nicotine in closed systems at the rate of $0.066 per milliliter beginning July 1, 2024, for taxable sales or purchases occurring on and after such date.","type":"section","prefixes":["A","4","1"],"prefix":"1","entire_prefix":"A41","prefix_anchor":"A41","level":3,"prior_prefix":"A4","next_prefix":"A42"},"6":{"id":277683,"text":"Upon liquid nicotine in open systems at the rate of 10 percent of the wholesale price beginning July 1, 2024, for taxable sales or purchases occurring on and after such date.\n\t\t\t\t\tb. For any transaction involving liquid nicotine between a distributor and a retail dealer, both the distributor and the retail dealer shall maintain and retain records of any invoice or sales receipt that shall include itemized lists of the types of products included in such transaction, the tax due on each product pursuant to this subsection, and the total amount of taxes paid. In every instance, a distributor shall be responsible for paying the tax on liquid nicotine pursuant to this subdivision 4 at the time of sale to a retail dealer. Such taxes shall apply only to liquid nicotine and not to any batteries, filters, or other mechanical or aesthetic components of liquid nicotine in a closed system or an open system.\n\t\t\t\t\tSuch tax shall be imposed at the time the remote retail seller located within or outside the Commonwealth makes a remote retail sale to a consumer within the Commonwealth. It is the intent and purpose of this subdivision that the remote retail seller be liable for the tax. It is further the intent and purpose of this article to impose the tax once, and only once on all tobacco products, including cigars and pipe tobacco sold in the Commonwealth.\n\t\t\t\t\tExcept as otherwise provided, such tax shall be imposed on tobacco products (i) at the time of retail sale by a retail dealer or distributor; (ii) at the time the distributor makes, manufactures, or fabricates tobacco products in the Commonwealth for sale in the Commonwealth; or (iii) at the time the distributor ships or transports tobacco products to retailers in the Commonwealth to be sold by those retailers. It is the intent and purpose of this article that the distributor who first possesses the tobacco product subject to this tax in the Commonwealth shall be the distributor liable for the tax. It is further the intent and purpose of this article to impose the tax once and only once on all tobacco products for sale in the Commonwealth.","type":"section","prefixes":["A","4","2"],"prefix":"2","entire_prefix":"A42","prefix_anchor":"A42","level":3,"prior_prefix":"A41","next_prefix":"B"},"7":{"id":277684,"text":"No tax shall be imposed pursuant to this section upon tobacco products not within the taxing power of the Commonwealth under the Commerce Clause of the United States Constitution.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A42","next_prefix":"C"},"8":{"id":277685,"text":"A distributor that calculates and pays the tax pursuant to subdivision A 1 or A 2 in good faith reliance on the net weight listed by the manufacturer on the package or on the manufacturer’s invoice shall not be liable for additional tax, or for interest or penalties, solely by reason of a subsequent determination that such weight information was incorrect.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14718,"edition_id":1,"name":"Tobacco Products Tax","identifier":"2.1","label":"article","depth":4,"order_by":1,"parent_id":13518,"metadata":{},"date_created":"2026-06-26 03:49:31","date_modified":"2026-06-26 03:49:31","permalink":{"id":252265,"object_type":"structure","relational_id":14718,"identifier":"2.1","token":"58.1\/I\/10\/2.1","url":"\/58.1\/I\/10\/2.1\/","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":73675,"structure_id":14718,"section_number":"58.1-1021.01","catch_line":"Definitions","url":"\/58.1-1021.01\/","token":"58.1\/I\/10\/2.1\/58.1-1021.01","metadata":false},{"id":77407,"structure_id":14718,"section_number":"58.1-1021.02","catch_line":"Tax on tobacco products and liquid nicotine","url":"\/58.1-1021.02\/","token":"58.1\/I\/10\/2.1\/58.1-1021.02","metadata":false},{"id":73926,"structure_id":14718,"section_number":"58.1-1021.02:1","catch_line":"Reports by manufacturers of tobacco products","url":"\/58.1-1021.02_1\/","token":"58.1\/I\/10\/2.1\/58.1-1021.02_1","metadata":false},{"id":69677,"structure_id":14718,"section_number":"58.1-1021.02:2","catch_line":"Records to be kept and reports by remote retail sellers of cigars and pipe tobacco","url":"\/58.1-1021.02_2\/","token":"58.1\/I\/10\/2.1\/58.1-1021.02_2","metadata":false},{"id":85071,"structure_id":14718,"section_number":"58.1-1021.03","catch_line":"Monthly return and payments of tax","url":"\/58.1-1021.03\/","token":"58.1\/I\/10\/2.1\/58.1-1021.03","metadata":false},{"id":82424,"structure_id":14718,"section_number":"58.1-1021.04","catch_line":"Failure to file return; fraudulent return; penalties; interest; overpayment of tax","url":"\/58.1-1021.04\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04","metadata":false},{"id":69459,"structure_id":14718,"section_number":"58.1-1021.04:1","catch_line":"Distributor's or remote retail seller's license; liquid nicotine and nicotine vapor products license; penalties","url":"\/58.1-1021.04_1\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04_1","metadata":false},{"id":84881,"structure_id":14718,"section_number":"58.1-1021.04:2","catch_line":"Certain records required of distributor; access to premises","url":"\/58.1-1021.04_2\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04_2","metadata":false},{"id":66520,"structure_id":14718,"section_number":"58.1-1021.04:3","catch_line":"Unlawful importation, transportation, or possession of tobacco products; civil penalty","url":"\/58.1-1021.04_3\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04_3","metadata":false},{"id":66149,"structure_id":14718,"section_number":"58.1-1021.04:4","catch_line":"Purchase of tobacco products for resale","url":"\/58.1-1021.04_4\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04_4","metadata":false},{"id":83603,"structure_id":14718,"section_number":"58.1-1021.04:5","catch_line":"Tax Commissioner to establish guidelines and rules","url":"\/58.1-1021.04_5\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04_5","metadata":false},{"id":72156,"structure_id":14718,"section_number":"58.1-1021.05","catch_line":"Use of revenues","url":"\/58.1-1021.05\/","token":"58.1\/I\/10\/2.1\/58.1-1021.05","metadata":false},{"id":82919,"structure_id":14718,"section_number":"58.1-1021.06","catch_line":"Delivery sales of liquid nicotine and nicotine vapor products","url":"\/58.1-1021.06\/","token":"58.1\/I\/10\/2.1\/58.1-1021.06","metadata":false},{"id":56399,"structure_id":14718,"section_number":"58.1-1021.07","catch_line":"Retail sales of liquid nicotine and nicotine vapor products; identification and use by minors","url":"\/58.1-1021.07\/","token":"58.1\/I\/10\/2.1\/58.1-1021.07","metadata":false},{"id":79268,"structure_id":14718,"section_number":"58.1-1021.08","catch_line":"General requirements for liquid nicotine and nicotine vapor products sales and resale","url":"\/58.1-1021.08\/","token":"58.1\/I\/10\/2.1\/58.1-1021.08","metadata":false},{"id":58980,"structure_id":14718,"section_number":"58.1-1021.09","catch_line":"Safety requirements for liquid nicotine and nicotine vapor products","url":"\/58.1-1021.09\/","token":"58.1\/I\/10\/2.1\/58.1-1021.09","metadata":false}],"previous_section":{"id":73675,"structure_id":14718,"section_number":"58.1-1021.01","catch_line":"Definitions","url":"\/58.1-1021.01\/","token":"58.1\/I\/10\/2.1\/58.1-1021.01","metadata":false},"next_section":{"id":73926,"structure_id":14718,"section_number":"58.1-1021.02:1","catch_line":"Reports by manufacturers of tobacco products","url":"\/58.1-1021.02_1\/","token":"58.1\/I\/10\/2.1\/58.1-1021.02_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-1021.02\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 4 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 2005, chapter 71<\/a>; in 2010, chapters 191<\/a> and 804<\/a>; in 2022, chapters 738<\/a> and 779<\/a>; in 2024, chapters 796<\/a> and 821<\/a>.<\/p>","references":[{"id":69677,"section_number":"58.1-1021.02:2","catch_line":"Records to be kept and reports by remote retail sellers of cigars and pipe tobacco","order_by":null,"url":"\/58.1-1021.02_2\/"},{"id":85071,"section_number":"58.1-1021.03","catch_line":"Monthly return and payments of tax","order_by":null,"url":"\/58.1-1021.03\/"},{"id":69459,"section_number":"58.1-1021.04:1","catch_line":"Distributor's or remote retail seller's license; liquid nicotine and nicotine vapor products license; penalties","order_by":null,"url":"\/58.1-1021.04_1\/"},{"id":79268,"section_number":"58.1-1021.08","catch_line":"General requirements for liquid nicotine and nicotine vapor products sales and resale","order_by":null,"url":"\/58.1-1021.08\/"}],"refers_to":false,"permalink":{"id":252271,"object_type":"law","relational_id":77407,"identifier":"58.1-1021.02","token":"58.1\/I\/10\/2.1\/58.1-1021.02","url":"\/58.1-1021.02\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-1021.02\/","token":"58.1\/I\/10\/2.1\/58.1-1021.02","dublin_core":{"Title":"Tax on tobacco products and liquid nicotine","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-1021.02","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In addition to all other taxes now imposed by law<\/span>, there is hereby imposed a tax upon the privilege<\/span> of selling or dealing in tobacco products<\/span><\/span> and liquid nicotine<\/span> in the Commonwealth by any person<\/span> engaged in business as a distributor<\/span> or remote retail seller<\/span> thereof, at the following rates: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Upon each package of moist snuff<\/span>, at the rate of $0.18 per ounce with a proportionate tax at the same rate on all fractional parts of an ounce. The tax shall be computed based on the net weight as listed by the manufacturer<\/span> on the package in accordance with federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For purposes of the tax under this article, loose leaf tobacco<\/span> shall be classified as loose leaf tobacco<\/span> single-units<\/span>, loose leaf tobacco<\/span> half pound-units<\/span>, and loose leaf tobacco<\/span> pound-units<\/span>. Such tax shall be imposed upon the distributor<\/span> for loose leaf tobacco<\/span> as follows:\n\t\t\t\ta. $0.21 for each loose leaf tobacco<\/span> single-unit<\/span>;\n\t\t\t\tb. $0.40 for each loose leaf tobacco<\/span> half pound-unit<\/span>;\n\t\t\t\tc. $0.70 for each loose leaf tobacco<\/span> pound-unit<\/span>; and\n\t\t\t\td. For any other unit, pouch, or package of loose leaf tobacco<\/span>, the tax shall be by net weight and shall be $0.21 per unit, pouch, or package plus $0.21 for each increment of four ounces or portion thereof that the loose leaf tobacco<\/span> exceeds 16 ounces.\n\t\t\t\tThe tax for each unit, pouch, or package of loose leaf tobacco<\/span> shall be in accordance with the provisions of subdivisions a through d only and regardless of sales price. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Except as otherwise provided, upon tobacco products<\/span><\/span> other than moist snuff<\/span> or loose leaf tobacco<\/span>, at the rate of 10 percent of the manufacturer<\/span>’s sales price of such tobacco products<\/span><\/span>.\n\t\t\t\tUpon cigars<\/span> and pipe tobacco products<\/span><\/span> sold by remote retail sellers<\/span>, the tax rates delineated in this subdivision shall apply to:\n\t\t\t\ta. The actual cost<\/span>; or\n\t\t\t\tb. If the actual cost<\/span> is not available, the average of the actual cost<\/span> over the 12 calendar months before January 1 of the year in which the sale occurs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> a. Upon the privilege<\/span> of selling or dealing in liquid nicotine<\/span> in the Commonwealth by any person<\/span> engaged in business as a distributor<\/span> of liquid nicotine<\/span>, at the following rates: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Upon liquid nicotine<\/span> in closed systems<\/span> at the rate of $0.066 per milliliter beginning July 1, 2024, for taxable sales or purchases occurring on and after such date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Upon liquid nicotine<\/span> in open systems<\/span> at the rate of 10 percent of the wholesale price beginning July 1, 2024, for taxable sales or purchases occurring on and after such date.\n\t\t\t\t\tb. For any transaction involving liquid nicotine<\/span> between a distributor<\/span> and a retail dealer<\/span>, both the distributor<\/span> and the retail dealer<\/span> shall maintain and retain records of any invoice or sales receipt that shall include itemized lists of the types of products included in such transaction, the tax due on each product pursuant to this subsection, and the total amount of taxes paid. In every instance, a distributor<\/span> shall be responsible for paying the tax on liquid nicotine<\/span> pursuant to this subdivision 4 at the time of sale to a retail dealer<\/span>. Such taxes shall apply only to liquid nicotine<\/span> and not to any batteries, filters, or other mechanical or aesthetic components of liquid nicotine<\/span> in a closed system<\/span> or an open system<\/span>.\n\t\t\t\t\tSuch tax shall be imposed at the time the remote retail seller<\/span> located within or outside the Commonwealth makes a remote retail sale<\/span> to a consumer<\/span> within the Commonwealth. It is the intent<\/span> and purpose of this subdivision that the remote retail seller<\/span> be liable for the tax. It is further the intent<\/span> and purpose of this article to impose the tax once, and only once on all tobacco products<\/span><\/span>, including cigars<\/span> and pipe tobacco<\/span> sold in the Commonwealth.\n\t\t\t\t\tExcept as otherwise provided, such tax shall be imposed on tobacco products<\/span><\/span> (i) at the time of retail sale by a retail dealer<\/span> or distributor<\/span>; (ii) at the time the distributor<\/span> makes, manufactures, or fabricates tobacco products<\/span><\/span> in the Commonwealth for sale in the Commonwealth; or (iii) at the time the distributor<\/span> ships or transports tobacco products<\/span><\/span> to retailers in the Commonwealth to be sold by those retailers. It is the intent<\/span> and purpose of this article that the distributor<\/span> who first possesses the tobacco product<\/span> subject to this tax in the Commonwealth shall be the distributor<\/span> liable for the tax. It is further the intent<\/span> and purpose of this article to impose the tax once and only once on all tobacco products<\/span><\/span> for sale in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No tax shall be imposed pursuant to this section upon tobacco products<\/span><\/span> not within the taxing power of the Commonwealth under the Commerce Clause of the United States Constitution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A distributor<\/span> that calculates and pays the tax pursuant to subdivision A 1 or A 2 in good faith reliance on the net weight listed by the manufacturer<\/span> on the package or on the manufacturer<\/span>’s invoice shall not be liable for additional tax, or for interest or penalties, solely by reason of a subsequent determination that such weight information was incorrect. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTAX ON TOBACCO PRODUCTS AND LIQUID NICOTINE (\u00a7 58.1-1021.02)\n\nA. In addition to all other taxes now imposed by law, there is hereby imposed a\ntax upon the privilege of selling or dealing in tobacco products and liquid\nnicotine in the Commonwealth by any person engaged in business as a distributor\nor remote retail seller thereof, at the following rates:\n\n 1. Upon each package of moist snuff, at the rate of $0.18 per ounce with a\n proportionate tax at the same rate on all fractional parts of an ounce. The\n tax shall be computed based on the net weight as listed by the manufacturer on\n the package in accordance with federal law.\n\n 2. For purposes of the tax under this article, loose leaf tobacco shall be\n classified as loose leaf tobacco single-units, loose leaf tobacco half\n pound-units, and loose leaf tobacco pound-units. Such tax shall be imposed\n upon the distributor for loose leaf tobacco as follows:\n \t\t\t\ta. $0.21 for each loose leaf tobacco single-unit;\n \t\t\t\tb. $0.40 for each loose leaf tobacco half pound-unit;\n \t\t\t\tc. $0.70 for each loose leaf tobacco pound-unit; and\n \t\t\t\td. For any other unit, pouch, or package of loose leaf tobacco, the tax\n shall be by net weight and shall be $0.21 per unit, pouch, or package plus\n $0.21 for each increment of four ounces or portion thereof that the loose leaf\n tobacco exceeds 16 ounces.\n \t\t\t\tThe tax for each unit, pouch, or package of loose leaf tobacco shall be in\n accordance with the provisions of subdivisions a through d only and regardless\n of sales price.\n\n 3. Except as otherwise provided, upon tobacco products other than moist snuff\n or loose leaf tobacco, at the rate of 10 percent of the manufacturer’s\n sales price of such tobacco products.\n \t\t\t\tUpon cigars and pipe tobacco products sold by remote retail sellers, the\n tax rates delineated in this subdivision shall apply to:\n \t\t\t\ta. The actual cost; or\n \t\t\t\tb. If the actual cost is not available, the average of the actual cost\n over the 12 calendar months before January 1 of the year in which the sale\n occurs.\n\n 4. a. Upon the privilege of selling or dealing in liquid nicotine in the\n Commonwealth by any person engaged in business as a distributor of liquid\n nicotine, at the following rates:\n\n 1. Upon liquid nicotine in closed systems at the rate of $0.066 per\n milliliter beginning July 1, 2024, for taxable sales or purchases occurring\n on and after such date.\n\n 2. Upon liquid nicotine in open systems at the rate of 10 percent of the\n wholesale price beginning July 1, 2024, for taxable sales or purchases\n occurring on and after such date.\n \t\t\t\t\tb. For any transaction involving liquid nicotine between a distributor\n and a retail dealer, both the distributor and the retail dealer shall\n maintain and retain records of any invoice or sales receipt that shall\n include itemized lists of the types of products included in such\n transaction, the tax due on each product pursuant to this subsection, and\n the total amount of taxes paid. In every instance, a distributor shall be\n responsible for paying the tax on liquid nicotine pursuant to this\n subdivision 4 at the time of sale to a retail dealer. Such taxes shall apply\n only to liquid nicotine and not to any batteries, filters, or other\n mechanical or aesthetic components of liquid nicotine in a closed system or\n an open system.\n \t\t\t\t\tSuch tax shall be imposed at the time the remote retail seller located\n within or outside the Commonwealth makes a remote retail sale to a consumer\n within the Commonwealth. It is the intent and purpose of this subdivision\n that the remote retail seller be liable for the tax. It is further the\n intent and purpose of this article to impose the tax once, and only once on\n all tobacco products, including cigars and pipe tobacco sold in the\n Commonwealth.\n \t\t\t\t\tExcept as otherwise provided, such tax shall be imposed on tobacco\n products (i) at the time of retail sale by a retail dealer or distributor;\n (ii) at the time the distributor makes, manufactures, or fabricates tobacco\n products in the Commonwealth for sale in the Commonwealth; or (iii) at the\n time the distributor ships or transports tobacco products to retailers in\n the Commonwealth to be sold by those retailers. It is the intent and purpose\n of this article that the distributor who first possesses the tobacco product\n subject to this tax in the Commonwealth shall be the distributor liable for\n the tax. It is further the intent and purpose of this article to impose the\n tax once and only once on all tobacco products for sale in the Commonwealth.\n\nB. No tax shall be imposed pursuant to this section upon tobacco products not\nwithin the taxing power of the Commonwealth under the Commerce Clause of the\nUnited States Constitution.\n\nC. A distributor that calculates and pays the tax pursuant to subdivision A 1 or\nA 2 in good faith reliance on the net weight listed by the manufacturer on the\npackage or on the manufacturer’s invoice shall not be liable for\nadditional tax, or for interest or penalties, solely by reason of a subsequent\ndetermination that such weight information was incorrect.\n\nHISTORY: 2004, Sp. Sess. I, c. 3; 2005, c. 71; 2010, cc. 191, 804; 2022, cc.\n738, 779; 2024, cc. 796, 821.","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}}