{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-1021.04_1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-1021.04_1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-1021.04_1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-1021.04_1.html"}],"law_id":69459,"edition_id":1,"section_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","history":"2005, c. 71; 2022, cc. 738, 779; 2024, cc. 796, 821; 2025, cc. 595, 596.","full_text":"A\n\n1. No person shall engage in the business of selling or dealing in tobacco products as a distributor in the Commonwealth without first having received a separate license from the Department for each location or place of business. Each application for a distributor’s license shall be accompanied by a fee to be prescribed by the Department. Every application for such license shall be made on a form prescribed by the Department and the following information shall be provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted; and\n\t\t\td. Such other information as the Department may require for the purpose of the administration of this article.2\n\nA person outside the Commonwealth who ships or transports tobacco products to retailers in the Commonwealth, to be sold by those retailers, may make application for license as a distributor, be granted such a license by the Department, and thereafter be subject to all the provisions of this article. Once a license is granted pursuant to this section, such person shall be entitled to act as a licensed distributor and, unless such person maintains a registered agent pursuant to Chapter 9 (§ 13.1-601 et seq.), 10 (§ 13.1-801 et seq.), 12 (§ 13.1-1000 et seq.), or 14 (§ 13.1-1200 et seq.) of Title 13.1 or Chapter 2.1 (§ 50-73.1 et seq.) or 2.2 (§ 50-73.79 et seq.) of Title 50, shall be deemed to have appointed the Clerk of the State Corporation Commission as the person’s agent for the purpose of service of process relating to any matter or issue involving the person and arising under the provisions of this article.\n\t\t\t\tThe Department shall conduct a background investigation, to include a Virginia criminal history records search, and fingerprints of the applicant, or the responsible principals, managers, and other persons engaged in handling tobacco products at the licensable locations, that shall be submitted to the Federal Bureau of Investigation if the Department deems a national criminal records search necessary, on applicants for licensure as tobacco products distributors. The Department may refuse to issue a distributor’s license or may suspend, revoke, or refuse to renew a distributor’s license issued to any person, partnership, corporation, limited liability company, or business trust if it determines that the principals, managers, and other persons engaged in handling tobacco products at the licensable location of the applicant have been (i) found guilty of any fraud or 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 who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a distributor’s license to the Department, is guilty of a Class 1 misdemeanor. The Department may establish an application or renewal fee not to exceed $750 to be retained by the Department to be applied to the administrative and other costs of processing distributor’s license applications, conducting background investigations, and issuing distributor’s licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury.3\n\nNo person inside or outside the Commonwealth shall make a remote retail sale of cigars or pipe tobacco to consumers in the Commonwealth without (i) completing an application for and being granted a license as a remote retail seller; (ii) determining whether economic nexus activity thresholds have been met to register for a dealer’s certificate under § 58.1-613; (iii) if economic nexus thresholds are met, collecting and remitting the excise tax pursuant to subsection A of § 58.1-1021.02; (iv) providing for age verification through an independent, third-party age verification service that compares information available from a commercially available database, or aggregate of databases, that is regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is of age; and (v) if economic nexus thresholds are met and excise tax is being remitted using the actual cost list method to calculate the excise tax, providing the remote retail seller’s certified actual cost list to the Department for each SKU to be offered for remote retail sale in the subsequent calendar year. The actual cost list shall be updated quarterly as new SKUs are added to a remote retail seller’s inventory. New SKUs will be added using the actual cost first paid for the SKU.B\n\nUpon receipt of an application in proper form and payment of the required license fee, the Department shall, unless otherwise provided by this article, issue to the applicant a license, which shall permit the licensee to engage in business as a distributor at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person. Distributor’s licenses issued pursuant to this section shall be valid for a period of three years from the date of issue unless revoked by the Department in the manner provided herein. The Department may at any time revoke the license issued to any distributor who is found guilty of violating or noncompliance with any of the provisions of this chapter or any of the rules of the Department adopted and promulgated under authority of this chapter. The Department shall suspend or revoke the license issued to any distributor who is found guilty of a second or subsequent violation of subsection A or B of § 18.2-371.2.C\n\n1. No person shall engage in the business of selling or dealing liquid nicotine or nicotine vapor products or shipping or transporting liquid nicotine or nicotine vapor products to retailers in the Commonwealth, to be sold by those retailers, as a manufacturer, distributor, or retail dealer in the Commonwealth without first having received a separate license from the Department for each location or place of business, and any person who violates such prohibition shall be subject to a penalty of $400 in addition to any other applicable taxes or fees. Each application for a manufacturer’s, distributor’s, or retail dealer’s liquid nicotine and nicotine vapor products license shall be accompanied by a fee to be prescribed by the Department. Any retail dealer who holds an approved Retail Sales and Use Tax Exemption Certificate for Stamped Cigarettes Purchased for Resale or an Other Tobacco Products (OTP) Distributor’s License issued by the Department shall not be required to obtain a license under this subsection. Every application for such liquid nicotine and nicotine vapor products license shall be made on a form prescribed by the Department and the following information shall be provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted; and\n\t\t\td. Such other information as the Department may require for the purpose of the administration of this article.2\n\nThe Department shall conduct a background investigation, to include a Virginia criminal history records search of the applicant, or the responsible principals and managers of liquid nicotine and nicotine vapor products at the licensable locations that shall be submitted to the Federal Bureau of Investigation if the Department deems a national criminal records search necessary, on applicants for licensure as a liquid nicotine and nicotine vapor products manufacturer, distributor, or retailer, as applicable. The Department may refuse to issue a license or may suspend, revoke, or refuse to renew a license issued to any person, partnership, corporation, limited liability company, or business trust if it determines that the principals and managers at the licensable location of the applicant have been (i) found guilty of any fraud or misrepresentation in any connection; (ii) convicted of robbery, extortion, burglary, larceny, embezzlement, fraudulent conversion, gambling, perjury, bribery, treason, tax evasion, or racketeering; or (iii) convicted of a felony within the last five years. Anyone who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a license to the Department is guilty of a Class 1 misdemeanor. The Department may establish an application or renewal fee to be retained by the Department to be applied to the administrative and other costs of processing license applications, conducting background investigations, and issuing licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury.3\n\nUpon receipt of an application in proper form and payment of the required license fee, the Department shall, unless otherwise provided by this article, issue to the applicant a liquid nicotine and nicotine vapor products license, which shall permit the licensee to engage in business as a manufacturer, distributor, or retail dealer at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person, partnership, corporation, limited liability company, or business trust; however, the Department may grant a temporary license to any applicant that has purchased the business of any manufacturer, distributor, or retail dealer licensed pursuant to this section while such applicant’s application for licensure is pending. Licenses, other than temporary licenses, issued pursuant to this section shall be valid for two years from the date of issue unless revoked by the Department in the manner provided in this section. The Department may at any time suspend or revoke the approved license, permit, or registration issued in accordance with this subsection to any person who is found guilty of violating or noncompliance with any of the provisions of this chapter or any of the rules of the Department adopted and promulgated under authority of this chapter. Any person authorized to sell liquid nicotine or nicotine vapor products pursuant to this subsection shall, as a condition of renewing or extending an approved license, permit, or registration, be required to submit to the Department an accurate record of any taxes paid on liquid nicotine pursuant to § 58.1-1021.02.4\n\nNo person shall make a sale of liquid nicotine or nicotine vapor products (i) to any person who has not attained the legal age for purchasing liquid nicotine or nicotine vapor products and (ii) without a valid liquid nicotine and nicotine vapor products license issued pursuant to this subsection. Any person who is found guilty of violating or noncompliance with this subdivision shall be subject to the following penalties:\n\t\t\t\ta. For the first violation in a 36-month period, a penalty of no less than $1,000;\n\t\t\t\tb. For a second violation in a 36-month period, a penalty of no less than $5,000 and a 30-day suspension of the liquid nicotine and nicotine vapor products license. If the person is found to be in violation of clause (i) of this subdivision 4, such person shall be required to verify that any consumer who appears to be under 30 years of age is of legal age by verifying such consumer’s government-issued photographic identification using fraud detection software, technology, or a scanner that confirms the authenticity of such identification; and\n\t\t\t\tc. For a third violation in a 36-month period, a penalty of no less than $10,000, revocation of the liquid nicotine and nicotine vapor products license, and ineligibility to possess a liquid nicotine and nicotine vapor products license for a period of three years from the date of the most recent violation.5\n\nNo person inside or outside the Commonwealth shall make a retail sale of liquid nicotine and nicotine vapor products without verifying that the consumer is of legal age by examining from any person who appears to be under 30 years of age a government-issued photographic identification that establishes that the person is of legal age or providing for age verification through an independent age verification service that compares information available from a commercially available database, or aggregate of databases, that is regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is of age.6\n\nFor any transaction between a distributor and a retail dealer involving liquid nicotine or nicotine vapor products, both the distributor and the retail dealer shall maintain and retain records of any invoice or sales receipt involved that shall include itemized lists of the types of products included in such transaction, the tax due on each product pursuant to subsection B of § 58.1-1021.02, and the total amount of taxes paid. Such records shall be produced and provided to the Department as necessary for auditing, compliance, and enforcement purposes.D\n\nThe Department shall compile and maintain a current list of licensed distributors and remote retail sellers of tobacco products and of manufacturers, distributors, and retail dealers of liquid nicotine and nicotine vapor products. The list shall be updated on a monthly basis and published on the Department’s website, available to any interested party.","order_by":null,"text":{"0":{"id":251161,"text":"1. No person shall engage in the business of selling or dealing in tobacco products as a distributor in the Commonwealth without first having received a separate license from the Department for each location or place of business. Each application for a distributor’s license shall be accompanied by a fee to be prescribed by the Department. Every application for such license shall be made on a form prescribed by the Department and the following information shall be provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted; and\n\t\t\td. Such other information as the Department may require for the purpose of the administration of this article.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":251162,"text":"A person outside the Commonwealth who ships or transports tobacco products to retailers in the Commonwealth, to be sold by those retailers, may make application for license as a distributor, be granted such a license by the Department, and thereafter be subject to all the provisions of this article. Once a license is granted pursuant to this section, such person shall be entitled to act as a licensed distributor and, unless such person maintains a registered agent pursuant to Chapter 9 (§ 13.1-601 et seq.), 10 (§ 13.1-801 et seq.), 12 (§ 13.1-1000 et seq.), or 14 (§ 13.1-1200 et seq.) of Title 13.1 or Chapter 2.1 (§ 50-73.1 et seq.) or 2.2 (§ 50-73.79 et seq.) of Title 50, shall be deemed to have appointed the Clerk of the State Corporation Commission as the person’s agent for the purpose of service of process relating to any matter or issue involving the person and arising under the provisions of this article.\n\t\t\t\tThe Department shall conduct a background investigation, to include a Virginia criminal history records search, and fingerprints of the applicant, or the responsible principals, managers, and other persons engaged in handling tobacco products at the licensable locations, that shall be submitted to the Federal Bureau of Investigation if the Department deems a national criminal records search necessary, on applicants for licensure as tobacco products distributors. The Department may refuse to issue a distributor’s license or may suspend, revoke, or refuse to renew a distributor’s license issued to any person, partnership, corporation, limited liability company, or business trust if it determines that the principals, managers, and other persons engaged in handling tobacco products at the licensable location of the applicant have been (i) found guilty of any fraud or 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 who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a distributor’s license to the Department, is guilty of a Class 1 misdemeanor. The Department may establish an application or renewal fee not to exceed $750 to be retained by the Department to be applied to the administrative and other costs of processing distributor’s license applications, conducting background investigations, and issuing distributor’s licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"A3"},"2":{"id":251163,"text":"No person inside or outside the Commonwealth shall make a remote retail sale of cigars or pipe tobacco to consumers in the Commonwealth without (i) completing an application for and being granted a license as a remote retail seller; (ii) determining whether economic nexus activity thresholds have been met to register for a dealer’s certificate under § 58.1-613; (iii) if economic nexus thresholds are met, collecting and remitting the excise tax pursuant to subsection A of § 58.1-1021.02; (iv) providing for age verification through an independent, third-party age verification service that compares information available from a commercially available database, or aggregate of databases, that is regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is of age; and (v) if economic nexus thresholds are met and excise tax is being remitted using the actual cost list method to calculate the excise tax, providing the remote retail seller’s certified actual cost list to the Department for each SKU to be offered for remote retail sale in the subsequent calendar year. The actual cost list shall be updated quarterly as new SKUs are added to a remote retail seller’s inventory. New SKUs will be added using the actual cost first paid for the SKU.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"3":{"id":251164,"text":"Upon receipt of an application in proper form and payment of the required license fee, the Department shall, unless otherwise provided by this article, issue to the applicant a license, which shall permit the licensee to engage in business as a distributor at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person. Distributor’s licenses issued pursuant to this section shall be valid for a period of three years from the date of issue unless revoked by the Department in the manner provided herein. The Department may at any time revoke the license issued to any distributor who is found guilty of violating or noncompliance with any of the provisions of this chapter or any of the rules of the Department adopted and promulgated under authority of this chapter. The Department shall suspend or revoke the license issued to any distributor who is found guilty of a second or subsequent violation of subsection A or B of § 18.2-371.2.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"4":{"id":251165,"text":"1. No person shall engage in the business of selling or dealing liquid nicotine or nicotine vapor products or shipping or transporting liquid nicotine or nicotine vapor products to retailers in the Commonwealth, to be sold by those retailers, as a manufacturer, distributor, or retail dealer in the Commonwealth without first having received a separate license from the Department for each location or place of business, and any person who violates such prohibition shall be subject to a penalty of $400 in addition to any other applicable taxes or fees. Each application for a manufacturer’s, distributor’s, or retail dealer’s liquid nicotine and nicotine vapor products license shall be accompanied by a fee to be prescribed by the Department. Any retail dealer who holds an approved Retail Sales and Use Tax Exemption Certificate for Stamped Cigarettes Purchased for Resale or an Other Tobacco Products (OTP) Distributor’s License issued by the Department shall not be required to obtain a license under this subsection. Every application for such liquid nicotine and nicotine vapor products license shall be made on a form prescribed by the Department and the following information shall be provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted; and\n\t\t\td. Such other information as the Department may require for the purpose of the administration of this article.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"5":{"id":251166,"text":"The Department shall conduct a background investigation, to include a Virginia criminal history records search of the applicant, or the responsible principals and managers of liquid nicotine and nicotine vapor products at the licensable locations that shall be submitted to the Federal Bureau of Investigation if the Department deems a national criminal records search necessary, on applicants for licensure as a liquid nicotine and nicotine vapor products manufacturer, distributor, or retailer, as applicable. The Department may refuse to issue a license or may suspend, revoke, or refuse to renew a license issued to any person, partnership, corporation, limited liability company, or business trust if it determines that the principals and managers at the licensable location of the applicant have been (i) found guilty of any fraud or misrepresentation in any connection; (ii) convicted of robbery, extortion, burglary, larceny, embezzlement, fraudulent conversion, gambling, perjury, bribery, treason, tax evasion, or racketeering; or (iii) convicted of a felony within the last five years. Anyone who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a license to the Department is guilty of a Class 1 misdemeanor. The Department may establish an application or renewal fee to be retained by the Department to be applied to the administrative and other costs of processing license applications, conducting background investigations, and issuing licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"C3"},"6":{"id":251167,"text":"Upon receipt of an application in proper form and payment of the required license fee, the Department shall, unless otherwise provided by this article, issue to the applicant a liquid nicotine and nicotine vapor products license, which shall permit the licensee to engage in business as a manufacturer, distributor, or retail dealer at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person, partnership, corporation, limited liability company, or business trust; however, the Department may grant a temporary license to any applicant that has purchased the business of any manufacturer, distributor, or retail dealer licensed pursuant to this section while such applicant’s application for licensure is pending. Licenses, other than temporary licenses, issued pursuant to this section shall be valid for two years from the date of issue unless revoked by the Department in the manner provided in this section. The Department may at any time suspend or revoke the approved license, permit, or registration issued in accordance with this subsection to any person who is found guilty of violating or noncompliance with any of the provisions of this chapter or any of the rules of the Department adopted and promulgated under authority of this chapter. Any person authorized to sell liquid nicotine or nicotine vapor products pursuant to this subsection shall, as a condition of renewing or extending an approved license, permit, or registration, be required to submit to the Department an accurate record of any taxes paid on liquid nicotine pursuant to § 58.1-1021.02.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"7":{"id":251168,"text":"No person shall make a sale of liquid nicotine or nicotine vapor products (i) to any person who has not attained the legal age for purchasing liquid nicotine or nicotine vapor products and (ii) without a valid liquid nicotine and nicotine vapor products license issued pursuant to this subsection. Any person who is found guilty of violating or noncompliance with this subdivision shall be subject to the following penalties:\n\t\t\t\ta. For the first violation in a 36-month period, a penalty of no less than $1,000;\n\t\t\t\tb. For a second violation in a 36-month period, a penalty of no less than $5,000 and a 30-day suspension of the liquid nicotine and nicotine vapor products license. If the person is found to be in violation of clause (i) of this subdivision 4, such person shall be required to verify that any consumer who appears to be under 30 years of age is of legal age by verifying such consumer’s government-issued photographic identification using fraud detection software, technology, or a scanner that confirms the authenticity of such identification; and\n\t\t\t\tc. For a third violation in a 36-month period, a penalty of no less than $10,000, revocation of the liquid nicotine and nicotine vapor products license, and ineligibility to possess a liquid nicotine and nicotine vapor products license for a period of three years from the date of the most recent violation.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"8":{"id":251169,"text":"No person inside or outside the Commonwealth shall make a retail sale of liquid nicotine and nicotine vapor products without verifying that the consumer is of legal age by examining from any person who appears to be under 30 years of age a government-issued photographic identification that establishes that the person is of legal age or providing for age verification through an independent age verification service that compares information available from a commercially available database, or aggregate of databases, that is regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is of age.","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"9":{"id":251170,"text":"For any transaction between a distributor and a retail dealer involving liquid nicotine or nicotine vapor products, both the distributor and the retail dealer shall maintain and retain records of any invoice or sales receipt involved that shall include itemized lists of the types of products included in such transaction, the tax due on each product pursuant to subsection B of § 58.1-1021.02, and the total amount of taxes paid. Such records shall be produced and provided to the Department as necessary for auditing, compliance, and enforcement purposes.","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"D"},"10":{"id":251171,"text":"The Department shall compile and maintain a current list of licensed distributors and remote retail sellers of tobacco products and of manufacturers, distributors, and retail dealers of liquid nicotine and nicotine vapor products. The list shall be updated on a monthly basis and published on the Department’s website, available to any interested party.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C6"}},"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; 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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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-1021.04:1\/","history_text":"

This law was first created in 2005. The record of its establishment is cataloged in chapter 71<\/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. It has been modified 3 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 2022, chapters 738<\/a> and 779<\/a>; in 2024, chapters 796<\/a> and 821<\/a>; in 2025, chapters 595<\/a> and 596<\/a>.<\/p>","references":[{"id":68538,"section_number":"18.2-371.2","catch_line":"Prohibiting sale or distribution, etc. of retail tobacco products and hemp products intended for smoking by persons under 21 years of age; civil penalties","order_by":null,"url":"\/18.2-371.2\/"},{"id":84881,"section_number":"58.1-1021.04:2","catch_line":"Certain records required of distributor; access to premises","order_by":null,"url":"\/58.1-1021.04_2\/"},{"id":82919,"section_number":"58.1-1021.06","catch_line":"Delivery sales of liquid nicotine and nicotine vapor products","order_by":null,"url":"\/58.1-1021.06\/"},{"id":56399,"section_number":"58.1-1021.07","catch_line":"Retail sales of liquid nicotine and nicotine vapor products; identification and use by minors","order_by":null,"url":"\/58.1-1021.07\/"},{"id":55956,"section_number":"58.1-623.2","catch_line":"Cigarette exemption certificate","order_by":null,"url":"\/58.1-623.2\/"}],"refers_to":[{"id":53976,"section_number":"13.1-1000","catch_line":"Short title","order_by":null,"url":"\/13.1-1000\/"},{"id":63435,"section_number":"13.1-1200","catch_line":"Short title","order_by":null,"url":"\/13.1-1200\/"},{"id":62759,"section_number":"13.1-601","catch_line":"Short title","order_by":null,"url":"\/13.1-601\/"},{"id":76305,"section_number":"13.1-801","catch_line":"Short title","order_by":null,"url":"\/13.1-801\/"},{"id":80626,"section_number":"50-73.1","catch_line":"Definitions","order_by":null,"url":"\/50-73.1\/"},{"id":76467,"section_number":"50-73.79","catch_line":"Definitions","order_by":null,"url":"\/50-73.79\/"},{"id":77407,"section_number":"58.1-1021.02","catch_line":"Tax on tobacco products and liquid nicotine","order_by":null,"url":"\/58.1-1021.02\/"},{"id":67446,"section_number":"58.1-613","catch_line":"Dealers' certificates of registration","order_by":null,"url":"\/58.1-613\/"}],"permalink":{"id":252291,"object_type":"law","relational_id":69459,"identifier":"58.1-1021.04:1","token":"58.1\/I\/10\/2.1\/58.1-1021.04_1","url":"\/58.1-1021.04_1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-1021.04_1\/","token":"58.1\/I\/10\/2.1\/58.1-1021.04_1","dublin_core":{"Title":"Distributor’s or remote retail seller’s license; liquid nicotine and nicotine vapor products license; penalties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-1021.04:1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. No person<\/span> shall engage in the business of selling or dealing in tobacco products<\/span><\/span> as a distributor<\/span> in the Commonwealth without first having received a separate license from the Department<\/span> for each location or place of business. Each application for a distributor<\/span>’s license shall be accompanied by a fee to be prescribed by the Department<\/span>. Every application for such license shall be made on a form prescribed by the Department<\/span> and the following information shall be provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted; and\n\t\t\td. Such other information as the Department<\/span> may require for the purpose of the administration of this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A person<\/span> outside the Commonwealth who ships or transports tobacco products<\/span><\/span> to retailers in the Commonwealth, to be sold by those retailers, may make application for license as a distributor<\/span>, be granted such a license by the Department<\/span>, and thereafter be subject to all the provisions of this article. Once a license is granted pursuant to this section, such person<\/span> shall be entitled to act as a licensed distributor<\/span> and, unless such person<\/span> maintains a registered agent pursuant to Chapter 9 (§ 13.1-601<\/a> et seq.), 10 (§ 13.1-801<\/a> et seq.), 12 (§ 13.1-1000<\/a> et seq.), or 14 (§ 13.1-1200<\/a> et seq.) of Title 13.1 or Chapter 2.1 (§ 50-73.1<\/a> et seq.) or 2.2 (§ 50-73.79<\/a> et seq.) of Title 50, shall be deemed to have appointed the Clerk of the State Corporation Commission as the person<\/span>’s agent for the purpose of service of process<\/span> relating to any matter or issue<\/span> involving the person<\/span> and arising under the provisions of this article.\n\t\t\t\tThe Department<\/span> shall conduct a background investigation, to include a Virginia criminal history records search, and fingerprints of the applicant, or the responsible principals, managers, and other persons<\/span> engaged in handling tobacco products<\/span><\/span> at the licensable locations, that shall be submitted to the Federal Bureau of Investigation if the Department<\/span> deems a national criminal records search necessary, on applicants for licensure as tobacco products<\/span><\/span> distributors<\/span>. The Department<\/span> may refuse to issue<\/span> a distributor<\/span>’s license or may suspend, revoke, or refuse to renew a distributor<\/span>’s license issued to any person<\/span>, partnership, corporation, limited liability company, or business trust if it determines that the principals, managers, and other persons<\/span> engaged in handling tobacco products<\/span><\/span> at the licensable location of the applicant have been (i) found guilty of any fraud<\/span> or misrepresentation in any connection; (ii) convicted of robbery<\/span>, extortion, burglary<\/span>, larceny<\/span>, embezzlement<\/span>, fraudulent conversion, gambling, perjury<\/span>, bribery, treason, or racketeering; or (iii) convicted of a felony<\/span>. Anyone who knowingly and willfully falsifies, conceals, or misrepresents a material<\/span> fact<\/span> or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a distributor<\/span>’s license to the Department<\/span>, is guilty of a Class 1 misdemeanor<\/span>. The Department<\/span> may establish an application or renewal fee not to exceed $750 to be retained by the Department<\/span> to be applied to the administrative and other costs of processing distributor<\/span>’s license applications, conducting background investigations, and issuing distributor<\/span>’s licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No person<\/span> inside or outside the Commonwealth shall make a remote retail sale<\/span> of cigars<\/span> or pipe tobacco<\/span> to consumers<\/span> in the Commonwealth without (i) completing an application for and being granted a license as a remote retail seller<\/span>; (ii) determining whether economic nexus activity thresholds have been met to register for a dealer’s certificate under § 58.1-613<\/a>; (iii) if economic nexus thresholds are met, collecting and remitting the excise tax pursuant to subsection A of § 58.1-1021.02<\/a>; (iv) providing for age verification through an independent, third-party<\/span> age verification service that compares information available from a commercially available database, or aggregate of databases, that is regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is of age; and (v) if economic nexus thresholds are met and excise tax is being remitted using the actual cost<\/span> list method to calculate the excise tax, providing the remote retail seller<\/span>’s certified actual cost<\/span> list to the Department<\/span> for each SKU<\/span> to be offered for remote retail sale<\/span> in the subsequent calendar year. The actual cost<\/span> list shall be updated quarterly as new SKUs<\/span> are added to a remote retail seller<\/span>’s inventory. New SKUs<\/span> will be added using the actual cost<\/span> first paid for the SKU<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Upon receipt of an application in proper form and payment of the required license fee, the Department<\/span> shall, unless otherwise provided by this article, issue<\/span> to the applicant a license, which shall permit the licensee to engage in business as a distributor<\/span> at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person<\/span>. Distributor<\/span>’s licenses issued pursuant to this section shall be valid for a period of three years from the date of issue<\/span> unless revoked by the Department<\/span> in the manner provided herein. The Department<\/span> may at any time revoke the license issued to any distributor<\/span> who is found guilty of violating or noncompliance with any of the provisions of this chapter or any of the rules of the Department<\/span> adopted and promulgated under authority of this chapter. The Department<\/span> shall suspend or revoke the license issued to any distributor<\/span> who is found guilty of a second or subsequent violation of subsection A or B of § 18.2-371.2<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. No person<\/span> shall engage in the business of selling or dealing liquid nicotine<\/span> or nicotine vapor products<\/span> or shipping or transporting liquid nicotine<\/span> or nicotine vapor products<\/span> to retailers in the Commonwealth, to be sold by those retailers, as a manufacturer<\/span>, distributor<\/span>, or retail dealer<\/span> in the Commonwealth without first having received a separate license from the Department<\/span> for each location or place of business, and any person<\/span> who violates such prohibition shall be subject to a penalty<\/span> of $400 in addition to any other applicable taxes or fees. Each application for a manufacturer<\/span>’s, distributor<\/span>’s, or retail dealer<\/span>’s liquid nicotine<\/span> and nicotine vapor products<\/span> license shall be accompanied by a fee to be prescribed by the Department<\/span>. Any retail dealer<\/span> who holds an approved Retail Sales<\/span> and Use<\/span> Tax Exemption Certificate for Stamped Cigarettes<\/span> Purchased for Resale or an Other Tobacco Products<\/span><\/span> (OTP) Distributor<\/span>’s License issued by the Department<\/span> shall not be required to obtain a license under this subsection. Every application for such liquid nicotine<\/span> and nicotine vapor products<\/span> license shall be made on a form prescribed by the Department<\/span> and the following information shall be provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted; and\n\t\t\td. Such other information as the Department<\/span> may require for the purpose of the administration of this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Department<\/span> shall conduct a background investigation, to include a Virginia criminal history records search of the applicant, or the responsible principals and managers of liquid nicotine<\/span> and nicotine vapor products<\/span> at the licensable locations that shall be submitted to the Federal Bureau of Investigation if the Department<\/span> deems a national criminal records search necessary, on applicants for licensure as a liquid nicotine<\/span> and nicotine vapor products<\/span> manufacturer<\/span>, distributor<\/span>, or retailer, as applicable. The Department<\/span> may refuse to issue<\/span> a license or may suspend, revoke, or refuse to renew a license issued to any person<\/span>, partnership, corporation, limited liability company, or business trust if it determines that the principals and managers at the licensable location of the applicant have been (i) found guilty of any fraud<\/span> or misrepresentation in any connection; (ii) convicted of robbery<\/span>, extortion, burglary<\/span>, larceny<\/span>, embezzlement<\/span>, fraudulent conversion, gambling, perjury<\/span>, bribery, treason, tax evasion, or racketeering; or (iii) convicted of a felony<\/span> within the last five years. Anyone who knowingly and willfully falsifies, conceals, or misrepresents a material<\/span> fact<\/span> or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a license to the Department<\/span> is guilty of a Class 1 misdemeanor<\/span>. The Department<\/span> may establish an application or renewal fee to be retained by the Department<\/span> to be applied to the administrative and other costs of processing license applications, conducting background investigations, and issuing licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Upon receipt of an application in proper form and payment of the required license fee, the Department<\/span> shall, unless otherwise provided by this article, issue<\/span> to the applicant a liquid nicotine<\/span> and nicotine vapor products<\/span> license, which shall permit the licensee to engage in business as a manufacturer<\/span>, distributor<\/span>, or retail dealer<\/span> at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person<\/span>, partnership, corporation, limited liability company, or business trust; however, the Department<\/span> may grant a temporary license to any applicant that has purchased the business of any manufacturer<\/span>, distributor<\/span>, or retail dealer<\/span> licensed pursuant to this section while such applicant’s application for licensure is pending. Licenses, other than temporary licenses, issued pursuant to this section shall be valid for two years from the date of issue<\/span> unless revoked by the Department<\/span> in the manner provided in this section. The Department<\/span> may at any time suspend or revoke the approved license, permit, or registration issued in accordance with this subsection to any person<\/span> who is found guilty of violating or noncompliance with any of the provisions of this chapter or any of the rules of the Department<\/span> adopted and promulgated under authority of this chapter. Any person<\/span> authorized to sell liquid nicotine<\/span> or nicotine vapor products<\/span> pursuant to this subsection shall, as a condition of renewing or extending an approved license, permit, or registration, be required to submit to the Department<\/span> an accurate record of any taxes paid on liquid nicotine<\/span> pursuant to § 58.1-1021.02<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> No person<\/span> shall make a sale of liquid nicotine<\/span> or nicotine vapor products<\/span> (i) to any person<\/span> who has not attained the legal age for purchasing liquid nicotine<\/span> or nicotine vapor products<\/span> and (ii) without a valid liquid nicotine<\/span> and nicotine vapor products<\/span> license issued pursuant to this subsection. Any person<\/span> who is found guilty of violating or noncompliance with this subdivision shall be subject to the following penalties:\n\t\t\t\ta. For the first violation in a 36-month period, a penalty<\/span> of no less than $1,000;\n\t\t\t\tb. For a second violation in a 36-month period, a penalty<\/span> of no less than $5,000 and a 30-day suspension of the liquid nicotine<\/span> and nicotine vapor products<\/span> license. If the person<\/span> is found to be in violation of clause (i) of this subdivision 4, such person<\/span> shall be required to verify that any consumer<\/span> who appears to be under 30 years of age is of legal age by verifying such consumer<\/span>’s government-issued photographic identification using fraud<\/span> detection software, technology, or a scanner that confirms the authenticity of such identification; and\n\t\t\t\tc. For a third violation in a 36-month period, a penalty<\/span> of no less than $10,000, revocation<\/span> of the liquid nicotine<\/span> and nicotine vapor products<\/span> license, and ineligibility to possess a liquid nicotine<\/span> and nicotine vapor products<\/span> license for a period of three years from the date of the most recent violation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> No person<\/span> inside or outside the Commonwealth shall make a retail sale of liquid nicotine<\/span> and nicotine vapor products<\/span> without verifying that the consumer<\/span> is of legal age by examining from any person<\/span> who appears to be under 30 years of age a government-issued photographic identification that establishes that the person<\/span> is of legal age or providing for age verification through an independent age verification service that compares information available from a commercially available database, or aggregate of databases, that is regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is of age. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> For any transaction between a distributor<\/span> and a retail dealer<\/span> involving liquid nicotine<\/span> or nicotine vapor products<\/span>, both the distributor<\/span> and the retail dealer<\/span> shall maintain and retain records of any invoice or sales receipt involved that shall include itemized lists of the types of products included in such transaction, the tax due on each product pursuant to subsection B of § 58.1-1021.02<\/a>, and the total amount of taxes paid. Such records shall be produced and provided to the Department<\/span> as necessary for auditing, compliance, and enforcement purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Department<\/span> shall compile and maintain a current list of licensed distributors<\/span> and remote retail sellers<\/span> of tobacco products<\/span><\/span> and of manufacturers<\/span>, distributors<\/span>, and retail dealers<\/span> of liquid nicotine<\/span> and nicotine vapor products<\/span>. The list shall be updated on a monthly basis and published on the Department<\/span>’s website, available to any interested party<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISTRIBUTOR’S OR REMOTE RETAIL SELLER’S LICENSE; LIQUID NICOTINE AND\nNICOTINE VAPOR PRODUCTS LICENSE; PENALTIES (\u00a7 58.1-1021.04:1)\n\nA. 1. No person shall engage in the business of selling or dealing in tobacco\nproducts as a distributor in the Commonwealth without first having received a\nseparate license from the Department for each location or place of business.\nEach application for a distributor’s license shall be accompanied by a fee\nto be prescribed by the Department. Every application for such license shall be\nmade on a form prescribed by the Department and the following information shall\nbe provided on the application:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm,\npartnership, or association, the name and address of each of its members shall\nbe provided. If the applicant is a corporation, the name and address of each of\nits principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted;\nand\n\t\t\td. Such other information as the Department may require for the purpose of\nthe administration of this article.\n\n 2. A person outside the Commonwealth who ships or transports tobacco products\n to retailers in the Commonwealth, to be sold by those retailers, may make\n application for license as a distributor, be granted such a license by the\n Department, and thereafter be subject to all the provisions of this article.\n Once a license is granted pursuant to this section, such person shall be\n entitled to act as a licensed distributor and, unless such person maintains a\n registered agent pursuant to Chapter 9 (§ 13.1-601 et seq.), 10 (§\n 13.1-801 et seq.), 12 (§ 13.1-1000 et seq.), or 14 (§ 13.1-1200 et\n seq.) of Title 13.1 or Chapter 2.1 (§ 50-73.1 et seq.) or 2.2 (§\n 50-73.79 et seq.) of Title 50, shall be deemed to have appointed the Clerk of\n the State Corporation Commission as the person’s agent for the purpose\n of service of process relating to any matter or issue involving the person and\n arising under the provisions of this article.\n \t\t\t\tThe Department shall conduct a background investigation, to include a\n Virginia criminal history records search, and fingerprints of the applicant,\n or the responsible principals, managers, and other persons engaged in handling\n tobacco products at the licensable locations, that shall be submitted to the\n Federal Bureau of Investigation if the Department deems a national criminal\n records search necessary, on applicants for licensure as tobacco products\n distributors. The Department may refuse to issue a distributor’s license\n or may suspend, revoke, or refuse to renew a distributor’s license\n issued to any person, partnership, corporation, limited liability company, or\n business trust if it determines that the principals, managers, and other\n persons engaged in handling tobacco products at the licensable location of the\n applicant have been (i) found guilty of any fraud or misrepresentation in any\n connection; (ii) convicted of robbery, extortion, burglary, larceny,\n embezzlement, fraudulent conversion, gambling, perjury, bribery, treason, or\n racketeering; or (iii) convicted of a felony. Anyone who knowingly and\n willfully falsifies, conceals, or misrepresents a material fact or knowingly\n and willfully makes a false, fictitious, or fraudulent statement or\n representation in any application for a distributor’s license to the\n Department, is guilty of a Class 1 misdemeanor. The Department may establish\n an application or renewal fee not to exceed $750 to be retained by the\n Department to be applied to the administrative and other costs of processing\n distributor’s license applications, conducting background\n investigations, and issuing distributor’s licenses. Any amount collected\n pursuant to this section in excess of such costs as of June 30 in\n even-numbered years shall be reported to the State Treasurer and deposited\n into the state treasury.\n\n 3. No person inside or outside the Commonwealth shall make a remote retail\n sale of cigars or pipe tobacco to consumers in the Commonwealth without (i)\n completing an application for and being granted a license as a remote retail\n seller; (ii) determining whether economic nexus activity thresholds have been\n met to register for a dealer’s certificate under § 58.1-613; (iii)\n if economic nexus thresholds are met, collecting and remitting the excise tax\n pursuant to subsection A of § 58.1-1021.02; (iv) providing for age\n verification through an independent, third-party age verification service that\n compares information available from a commercially available database, or\n aggregate of databases, that is regularly used by government agencies and\n businesses for the purpose of age and identity verification to the personal\n information entered by the individual during the ordering process that\n establishes that the individual is of age; and (v) if economic nexus\n thresholds are met and excise tax is being remitted using the actual cost list\n method to calculate the excise tax, providing the remote retail seller’s\n certified actual cost list to the Department for each SKU to be offered for\n remote retail sale in the subsequent calendar year. The actual cost list shall\n be updated quarterly as new SKUs are added to a remote retail seller’s\n inventory. New SKUs will be added using the actual cost first paid for the\n SKU.\n\nB. Upon receipt of an application in proper form and payment of the required\nlicense fee, the Department shall, unless otherwise provided by this article,\nissue to the applicant a license, which shall permit the licensee to engage in\nbusiness as a distributor at the place of business shown on the license. Each\nlicense, or a copy thereof, shall be prominently displayed on the premises\ncovered by the license. No license shall be transferable to any other person.\nDistributor’s licenses issued pursuant to this section shall be valid for\na period of three years from the date of issue unless revoked by the Department\nin the manner provided herein. The Department may at any time revoke the license\nissued to any distributor who is found guilty of violating or noncompliance with\nany of the provisions of this chapter or any of the rules of the Department\nadopted and promulgated under authority of this chapter. The Department shall\nsuspend or revoke the license issued to any distributor who is found guilty of a\nsecond or subsequent violation of subsection A or B of § 18.2-371.2.\n\nC. 1. No person shall engage in the business of selling or dealing liquid\nnicotine or nicotine vapor products or shipping or transporting liquid nicotine\nor nicotine vapor products to retailers in the Commonwealth, to be sold by those\nretailers, as a manufacturer, distributor, or retail dealer in the Commonwealth\nwithout first having received a separate license from the Department for each\nlocation or place of business, and any person who violates such prohibition\nshall be subject to a penalty of $400 in addition to any other applicable taxes\nor fees. Each application for a manufacturer’s, distributor’s, or\nretail dealer’s liquid nicotine and nicotine vapor products license shall\nbe accompanied by a fee to be prescribed by the Department. Any retail dealer\nwho holds an approved Retail Sales and Use Tax Exemption Certificate for Stamped\nCigarettes Purchased for Resale or an Other Tobacco Products (OTP)\nDistributor’s License issued by the Department shall not be required to\nobtain a license under this subsection. Every application for such liquid\nnicotine and nicotine vapor products license shall be made on a form prescribed\nby the Department and the following information shall be provided on the\napplication:\n\t\t\ta. The name and address of the applicant. If the applicant is a firm,\npartnership, or association, the name and address of each of its members shall\nbe provided. If the applicant is a corporation, the name and address of each of\nits principal officers shall be provided;\n\t\t\tb. The address of the applicant’s principal place of business;\n\t\t\tc. The place or places where the business to be licensed is to be conducted;\nand\n\t\t\td. Such other information as the Department may require for the purpose of\nthe administration of this article.\n\n 2. The Department shall conduct a background investigation, to include a\n Virginia criminal history records search of the applicant, or the responsible\n principals and managers of liquid nicotine and nicotine vapor products at the\n licensable locations that shall be submitted to the Federal Bureau of\n Investigation if the Department deems a national criminal records search\n necessary, on applicants for licensure as a liquid nicotine and nicotine vapor\n products manufacturer, distributor, or retailer, as applicable. The Department\n may refuse to issue a license or may suspend, revoke, or refuse to renew a\n license issued to any person, partnership, corporation, limited liability\n company, or business trust if it determines that the principals and managers\n at the licensable location of the applicant have been (i) found guilty of any\n fraud or misrepresentation in any connection; (ii) convicted of robbery,\n extortion, burglary, larceny, embezzlement, fraudulent conversion, gambling,\n perjury, bribery, treason, tax evasion, or racketeering; or (iii) convicted of\n a felony within the last five years. Anyone who knowingly and willfully\n falsifies, conceals, or misrepresents a material fact or knowingly and\n willfully makes a false, fictitious, or fraudulent statement or representation\n in any application for a license to the Department is guilty of a Class 1\n misdemeanor. The Department may establish an application or renewal fee to be\n retained by the Department to be applied to the administrative and other costs\n of processing license applications, conducting background investigations, and\n issuing licenses. Any amount collected pursuant to this section in excess of\n such costs as of June 30 in even-numbered years shall be reported to the State\n Treasurer and deposited into the state treasury.\n\n 3. Upon receipt of an application in proper form and payment of the required\n license fee, the Department shall, unless otherwise provided by this article,\n issue to the applicant a liquid nicotine and nicotine vapor products license,\n which shall permit the licensee to engage in business as a manufacturer,\n distributor, or retail dealer at the place of business shown on the license.\n Each license, or a copy thereof, shall be prominently displayed on the\n premises covered by the license. No license shall be transferable to any other\n person, partnership, corporation, limited liability company, or business\n trust; however, the Department may grant a temporary license to any applicant\n that has purchased the business of any manufacturer, distributor, or retail\n dealer licensed pursuant to this section while such applicant’s\n application for licensure is pending. Licenses, other than temporary licenses,\n issued pursuant to this section shall be valid for two years from the date of\n issue unless revoked by the Department in the manner provided in this section.\n The Department may at any time suspend or revoke the approved license, permit,\n or registration issued in accordance with this subsection to any person who is\n found guilty of violating or noncompliance with any of the provisions of this\n chapter or any of the rules of the Department adopted and promulgated under\n authority of this chapter. Any person authorized to sell liquid nicotine or\n nicotine vapor products pursuant to this subsection shall, as a condition of\n renewing or extending an approved license, permit, or registration, be\n required to submit to the Department an accurate record of any taxes paid on\n liquid nicotine pursuant to § 58.1-1021.02.\n\n 4. No person shall make a sale of liquid nicotine or nicotine vapor products\n (i) to any person who has not attained the legal age for purchasing liquid\n nicotine or nicotine vapor products and (ii) without a valid liquid nicotine\n and nicotine vapor products license issued pursuant to this subsection. Any\n person who is found guilty of violating or noncompliance with this subdivision\n shall be subject to the following penalties:\n \t\t\t\ta. For the first violation in a 36-month period, a penalty of no less than\n $1,000;\n \t\t\t\tb. For a second violation in a 36-month period, a penalty of no less than\n $5,000 and a 30-day suspension of the liquid nicotine and nicotine vapor\n products license. If the person is found to be in violation of clause (i) of\n this subdivision 4, such person shall be required to verify that any consumer\n who appears to be under 30 years of age is of legal age by verifying such\n consumer’s government-issued photographic identification using fraud\n detection software, technology, or a scanner that confirms the authenticity of\n such identification; and\n \t\t\t\tc. For a third violation in a 36-month period, a penalty of no less than\n $10,000, revocation of the liquid nicotine and nicotine vapor products\n license, and ineligibility to possess a liquid nicotine and nicotine vapor\n products license for a period of three years from the date of the most recent\n violation.\n\n 5. No person inside or outside the Commonwealth shall make a retail sale of\n liquid nicotine and nicotine vapor products without verifying that the\n consumer is of legal age by examining from any person who appears to be under\n 30 years of age a government-issued photographic identification that\n establishes that the person is of legal age or providing for age verification\n through an independent age verification service that compares information\n available from a commercially available database, or aggregate of databases,\n that is regularly used by government agencies and businesses for the purpose\n of age and identity verification to the personal information entered by the\n individual during the ordering process that establishes that the individual is\n of age.\n\n 6. For any transaction between a distributor and a retail dealer involving\n liquid nicotine or nicotine vapor products, both the distributor and the\n retail dealer shall maintain and retain records of any invoice or sales\n receipt involved that shall include itemized lists of the types of products\n included in such transaction, the tax due on each product pursuant to\n subsection B of § 58.1-1021.02, and the total amount of taxes paid. Such\n records shall be produced and provided to the Department as necessary for\n auditing, compliance, and enforcement purposes.\n\nD. The Department shall compile and maintain a current list of licensed\ndistributors and remote retail sellers of tobacco products and of manufacturers,\ndistributors, and retail dealers of liquid nicotine and nicotine vapor products.\nThe list shall be updated on a monthly basis and published on the\nDepartment’s website, available to any interested party.\n\nHISTORY: 2005, c. 71; 2022, cc. 738, 779; 2024, cc. 796, 821; 2025, cc. 595,\n596.","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}}