{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-623.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-623.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-623.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-623.2.html"}],"law_id":55956,"edition_id":1,"section_id":55956,"structure_id":12899,"section_number":"58.1-623.2","catch_line":"Cigarette exemption certificate","history":"2017, cc. 112, 453.","full_text":"A\n\n1. Notwithstanding any other provision of law, all sales of cigarettes, as defined in \u00a7 58.1-1031, bearing Virginia revenue stamps in the Commonwealth shall be subject to the tax until the contrary is established. The burden of proving that a sale is not taxable is upon the dealer unless he takes from the taxpayer a cigarette exemption certificate issued by the Department to the taxpayer to the effect that the cigarettes are exempt under this chapter for the purposes of resale in the Commonwealth.2\n\nThe cigarette exemption certificate mentioned in this section shall relieve the person who takes such certificate from any liability for the payment or collection of the tax on the sale of cigarettes, except upon notice from the Tax Commissioner or the taxpayer that such certificate is no longer acceptable.3\n\nIf a taxpayer who gives a cigarette exemption certificate under this section makes any use of the property other than an exempt use or retention, demonstration, or display while holding the property for resale or distribution in the regular course of business, such use shall be deemed a taxable sale by the taxpayer as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price of such retail sale.B\n\n1. Prior to issuing a cigarette exemption certificate under this section, the Department shall conduct a background investigation on the taxpayer for the certificate. The Department shall not issue a cigarette exemption certificate until at least 30 days have passed from the receipt of the application, unless the taxpayer qualifies for the expedited process set forth in subdivision 3, or any other expedited process set forth in guidelines issued pursuant to subsection L. If the taxpayer does not qualify for the expedited process, the Department shall inspect each location listed in the application and verify that any location that resells cigarettes meets the requirements prescribed in subsection E.2\n\nA taxpayer shall be required to pay an application fee, not to exceed $50, to the Department for a cigarette exemption certificate.3\n\nA taxpayer shall be eligible for an expedited process to receive a cigarette exemption certificate if the taxpayer possesses, at the time of filing an application for a cigarette exemption certificate, (i) an active license, in good standing, issued by the Department of Alcoholic Beverage Control pursuant to Title 4.1, as verified by electronic or other means by the Department, or (ii) an active tobacco products tax distributor’s license, in good standing, issued by the Department pursuant to § 58.1-1021.04:1. The Department may identify other categories of taxpayers who qualify for an expedited process through guidelines issued pursuant to subsection L. Taxpayers that qualify for an expedited process shall not be subject to the background check or the waiting period set forth in subdivision 1, nor shall such taxpayers be required to pay the application fee set forth in subdivision 2.4\n\nIf a taxpayer has been denied a cigarette exemption certificate, or has been issued a cigarette exemption certificate that has subsequently been suspended or revoked, the Department shall not consider an application from the taxpayer for a new cigarette exemption certificate for six months from the date of the denial, suspension, or revocation.C\n\nThe Department shall deny an application for a cigarette exemption certificate, or suspend or revoke a cigarette exemption certificate previously issued to a taxpayer, if the Department determines that:1\n\nThe taxpayer is a person who is not 18 years of age or older;2\n\nThe taxpayer is a person who is physically unable to carry on the business for which the application for a cigarette exemption certificate is filed, or has been adjudicated incapacitated;3\n\nThe taxpayer has not resided in the Commonwealth for at least one year immediately preceding the application, unless in the opinion of the Department, good cause exists for the taxpayer to have not resided in the Commonwealth for the immediately preceding year;4\n\nThe taxpayer has not established a physical place of business in the Commonwealth, as described in subsection E;5\n\nA court or administrative body having jurisdiction has found that the physical place of business occupied by the taxpayer, as described in subsection E, does not conform to the sanitation, health, construction, or equipment requirements of the governing body of the county, city, or town in which such physical place is located, or to similar requirements established pursuant to the laws of the Commonwealth;6\n\nThe physical place of business occupied by the taxpayer, as described in subsection E, is not constructed, arranged, or illuminated so as to allow access to and reasonable observation of, any room or area in which cigarettes are to be sold;7\n\nThe taxpayer is not an authorized representative of the business;8\n\nThe taxpayer made a material misstatement or material omission in the application;9\n\nThe taxpayer has defrauded, or attempted to defraud, the Department, or any federal, state, or local government or governmental agency or authority, by making or filing any report, document, or tax return required by statute or regulation that is fraudulent or contains a false representation of material fact, or the taxpayer has willfully deceived or attempted to deceive the Department, or any federal, state, or local government or governmental agency or authority, by making or maintaining business records required by statute or regulation that are false or fraudulent;10\n\nThe Tax Commissioner has determined that the taxpayer has misused the certificate;11\n\nThe taxpayer has knowingly and willfully allowed any individual, other than an authorized representative, to use the certificate;12\n\nThe taxpayer has failed to comply with or has been convicted under any of the provisions of this chapter or Chapter 10 (§ 58.1-1000 et seq.) or any of the rules of the Department adopted or promulgated under the authority of this chapter or Chapter 10; however, no certificate shall be denied, suspended, or revoked on the basis of a failure to file a retail sales and use tax return or remit retail sales and use tax unless the taxpayer is more than 30 days delinquent in any filing or payment and has not entered into an installment agreement pursuant to § 58.1-1817; or13\n\nThe taxpayer has been convicted under the laws of any state or of the United States of (i) any robbery, extortion, burglary, larceny, embezzlement, gambling, perjury, bribery, treason, racketeering, money laundering, other crime involving fraud under Chapter 6 (§ 18.2-168 et seq.) of Title 18.2, or crime that has the same elements of the offenses set forth in § 58.1-1017 or 58.1-1017.1, or (ii) a felony.D\n\nThe provisions of § 58.1-623.1 shall apply to the suspension and revocation of exemption certificates issued pursuant to this section, mutatis mutandis.E\n\nA cigarette exemption certificate shall only be issued to a taxpayer who:1\n\nHas a physical place of business in the Commonwealth, owned or leased by him, where a substantial portion of the sales activity of the retail cigarette sales activity of the business is routinely conducted and that (i) satisfies all local zoning regulations; (ii) has sales and office space of at least 250 square feet in a permanent, enclosed building not used as a house, apartment, storage unit, garage, or other building other than a building zoned for retail business; (iii) houses all records required to be maintained pursuant to § 58.1-1007; (iv) is equipped with office equipment, including but not limited to, a desk, a chair, a Point of Sale System, filing space, a working telephone listed in the name of the taxpayer or his business, working utilities, including electricity and provisions for space heating, and an Internet connection and email address; (v) displays a sign and business hours and is open to the public during the listed business hours; and (vi) does not occupy the same physical place of business of any other taxpayer who has been issued a cigarette exemption certificate;2\n\nPossesses a copy of the (i) corporate charter and articles of incorporation in the case of a corporation, (ii) partnership agreement in the case of a partnership, or (iii) organizational registration from the Virginia State Corporation Commission in the case of an LLC; and3\n\nPossesses a local business license, if such local business license is required by the locality where the taxpayer’s physical place of business is located.F\n\nA taxpayer with more than one physical place of business shall be required to complete only one application for a cigarette exemption certificate but shall list on the application every physical place of business in the Commonwealth where cigarettes are purchased, stored, or resold by the taxpayer or his affiliate. Upon approval of the application, the Department shall issue a cigarette exemption certificate to the taxpayer. The taxpayer shall be authorized to resell cigarettes only at the locations listed on the application. No cigarette exemption certificate shall be transferrable. For purposes of this subsection, a taxpayer shall be considered to have more than one physical place of business if the taxpayer owns or leases two or more physical locations in the Commonwealth where cigarettes are purchased, stored, or resold.G\n\nA cigarette exemption certificate issued to a taxpayer shall bear the address of the physical place of business occupied or to be occupied by the taxpayer in conducting the business of purchasing cigarettes in the Commonwealth. In the event that a taxpayer intends to move the physical place of business listed on a certificate to a new location, he shall provide written notice to the Department at least 30 days in advance of the move. A successful inspection of the new physical place of business shall be required by the Department prior to the issuance of a new cigarette exemption certificate bearing the updated address. If the taxpayer intends to change any of the required information relating to the physical places of business contained in the application for the cigarette exemption certificate submitted pursuant to subsection F, the taxpayer shall file an amendment to the application at least 30 days in advance of such change. The certificate with the original address shall become invalid upon the issuance of the new certificate, or 30 days after notice of the move is provided to the Department, whichever occurs sooner. A taxpayer shall not be required to pay a fee to the Department for the issuance of a new cigarette exemption certificate pursuant to this subsection.H\n\nThe privilege of a taxpayer issued a cigarette exemption certificate to purchase cigarettes shall extend to any authorized representative of such taxpayer. The taxpayer issued a cigarette exemption certificate may be held liable for any violation of this chapter, Chapter 10 (§ 58.1-1000 et seq.), Chapter 10.1 (§ 58.1-1031 et seq.), or any related Department guidelines by such authorized representative.I\n\nA taxpayer issued a cigarette exemption certificate shall comply with the recordkeeping requirements prescribed in § 58.1-1007 and shall make such records available for audit and inspection as provided therein. A taxpayer issued a cigarette exemption certificate who fails to comply with such requirements shall be subject to the penalties provided in § 58.1-1007.J\n\nA cigarette exemption certificate granted by the Department shall be valid for five years from the date of issuance. At the end of the five-year period, the cigarette exemption certificate of a taxpayer who qualifies for the expedited application process set forth in subdivision B 3 shall be automatically renewed and no fee shall be required. If a taxpayer does not qualify for the expedited application process, then such taxpayer shall apply to the Department to renew the new cigarette exemption certificate as set forth in subdivision B 1 and shall pay an application fee not to exceed $50 as set forth in subdivision B 2; however, the 30-day waiting period set forth in subdivision B 1 shall not apply.K\n\nNo taxpayer issued a cigarette exemption certificate shall display the certificate, or a copy thereof, in the physical place of business where a substantial portion of the retail cigarette sales activity of the business is routinely conducted.L\n\nThe Tax Commissioner shall develop guidelines implementing the provisions of this section, including but not limited to (i) defining categories of taxpayers who qualify for the expedited process, (ii) prescribing the form of the application for the cigarette exemption certificate, (iii) prescribing the form of the application for the expedited cigarette exemption certificate, (iv) establishing procedures for suspending and revoking the cigarette exemption certificate, and (v) establishing procedures for renewing the cigarette exemption certificate. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).M\n\nFor the purposes of this section:\n\t\t\t“Authorized representative” means an individual who has an ownership interest in or is a current employee of the taxpayer who possesses a valid cigarette exemption certificate pursuant to this section.","order_by":null,"text":{"0":{"id":204949,"text":"1. Notwithstanding any other provision of law, all sales of cigarettes, as defined in \u00a7 58.1-1031, bearing Virginia revenue stamps in the Commonwealth shall be subject to the tax until the contrary is established. The burden of proving that a sale is not taxable is upon the dealer unless he takes from the taxpayer a cigarette exemption certificate issued by the Department to the taxpayer to the effect that the cigarettes are exempt under this chapter for the purposes of resale in the Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":204950,"text":"The cigarette exemption certificate mentioned in this section shall relieve the person who takes such certificate from any liability for the payment or collection of the tax on the sale of cigarettes, except upon notice from the Tax Commissioner or the taxpayer that such certificate is no longer acceptable.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"A3"},"2":{"id":204951,"text":"If a taxpayer who gives a cigarette exemption certificate under this section makes any use of the property other than an exempt use or retention, demonstration, or display while holding the property for resale or distribution in the regular course of business, such use shall be deemed a taxable sale by the taxpayer as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price of such retail sale.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"3":{"id":204952,"text":"1. Prior to issuing a cigarette exemption certificate under this section, the Department shall conduct a background investigation on the taxpayer for the certificate. The Department shall not issue a cigarette exemption certificate until at least 30 days have passed from the receipt of the application, unless the taxpayer qualifies for the expedited process set forth in subdivision 3, or any other expedited process set forth in guidelines issued pursuant to subsection L. If the taxpayer does not qualify for the expedited process, the Department shall inspect each location listed in the application and verify that any location that resells cigarettes meets the requirements prescribed in subsection E.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B2"},"4":{"id":204953,"text":"A taxpayer shall be required to pay an application fee, not to exceed $50, to the Department for a cigarette exemption certificate.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"5":{"id":204954,"text":"A taxpayer shall be eligible for an expedited process to receive a cigarette exemption certificate if the taxpayer possesses, at the time of filing an application for a cigarette exemption certificate, (i) an active license, in good standing, issued by the Department of Alcoholic Beverage Control pursuant to Title 4.1, as verified by electronic or other means by the Department, or (ii) an active tobacco products tax distributor’s license, in good standing, issued by the Department pursuant to § 58.1-1021.04:1. The Department may identify other categories of taxpayers who qualify for an expedited process through guidelines issued pursuant to subsection L. Taxpayers that qualify for an expedited process shall not be subject to the background check or the waiting period set forth in subdivision 1, nor shall such taxpayers be required to pay the application fee set forth in subdivision 2.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"6":{"id":204955,"text":"If a taxpayer has been denied a cigarette exemption certificate, or has been issued a cigarette exemption certificate that has subsequently been suspended or revoked, the Department shall not consider an application from the taxpayer for a new cigarette exemption certificate for six months from the date of the denial, suspension, or revocation.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"7":{"id":204956,"text":"The Department shall deny an application for a cigarette exemption certificate, or suspend or revoke a cigarette exemption certificate previously issued to a taxpayer, if the Department determines that:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"8":{"id":204957,"text":"The taxpayer is a person who is not 18 years of age or older;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"9":{"id":204958,"text":"The taxpayer is a person who is physically unable to carry on the business for which the application for a cigarette exemption certificate is filed, or has been adjudicated incapacitated;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"10":{"id":204959,"text":"The taxpayer has not resided in the Commonwealth for at least one year immediately preceding the application, unless in the opinion of the Department, good cause exists for the taxpayer to have not resided in the Commonwealth for the immediately preceding year;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"11":{"id":204960,"text":"The taxpayer has not established a physical place of business in the Commonwealth, as described in subsection E;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"12":{"id":204961,"text":"A court or administrative body having jurisdiction has found that the physical place of business occupied by the taxpayer, as described in subsection E, does not conform to the sanitation, health, construction, or equipment requirements of the governing body of the county, city, or town in which such physical place is located, or to similar requirements established pursuant to the laws of the Commonwealth;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"13":{"id":204962,"text":"The physical place of business occupied by the taxpayer, as described in subsection E, is not constructed, arranged, or illuminated so as to allow access to and reasonable observation of, any room or area in which cigarettes are to be sold;","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"14":{"id":204963,"text":"The taxpayer is not an authorized representative of the business;","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"C8"},"15":{"id":204964,"text":"The taxpayer made a material misstatement or material omission in the application;","type":"section","prefixes":["C","8"],"prefix":"8","entire_prefix":"C8","prefix_anchor":"C8","level":2,"prior_prefix":"C7","next_prefix":"C9"},"16":{"id":204965,"text":"The taxpayer has defrauded, or attempted to defraud, the Department, or any federal, state, or local government or governmental agency or authority, by making or filing any report, document, or tax return required by statute or regulation that is fraudulent or contains a false representation of material fact, or the taxpayer has willfully deceived or attempted to deceive the Department, or any federal, state, or local government or governmental agency or authority, by making or maintaining business records required by statute or regulation that are false or fraudulent;","type":"section","prefixes":["C","9"],"prefix":"9","entire_prefix":"C9","prefix_anchor":"C9","level":2,"prior_prefix":"C8","next_prefix":"C10"},"17":{"id":204966,"text":"The Tax Commissioner has determined that the taxpayer has misused the certificate;","type":"section","prefixes":["C","10"],"prefix":"10","entire_prefix":"C10","prefix_anchor":"C10","level":2,"prior_prefix":"C9","next_prefix":"C11"},"18":{"id":204967,"text":"The taxpayer has knowingly and willfully allowed any individual, other than an authorized representative, to use the certificate;","type":"section","prefixes":["C","11"],"prefix":"11","entire_prefix":"C11","prefix_anchor":"C11","level":2,"prior_prefix":"C10","next_prefix":"C12"},"19":{"id":204968,"text":"The taxpayer has failed to comply with or has been convicted under any of the provisions of this chapter or Chapter 10 (§ 58.1-1000 et seq.) or any of the rules of the Department adopted or promulgated under the authority of this chapter or Chapter 10; however, no certificate shall be denied, suspended, or revoked on the basis of a failure to file a retail sales and use tax return or remit retail sales and use tax unless the taxpayer is more than 30 days delinquent in any filing or payment and has not entered into an installment agreement pursuant to § 58.1-1817; or","type":"section","prefixes":["C","12"],"prefix":"12","entire_prefix":"C12","prefix_anchor":"C12","level":2,"prior_prefix":"C11","next_prefix":"C13"},"20":{"id":204969,"text":"The taxpayer has been convicted under the laws of any state or of the United States of (i) any robbery, extortion, burglary, larceny, embezzlement, gambling, perjury, bribery, treason, racketeering, money laundering, other crime involving fraud under Chapter 6 (§ 18.2-168 et seq.) of Title 18.2, or crime that has the same elements of the offenses set forth in § 58.1-1017 or 58.1-1017.1, or (ii) a felony.","type":"section","prefixes":["C","13"],"prefix":"13","entire_prefix":"C13","prefix_anchor":"C13","level":2,"prior_prefix":"C12","next_prefix":"D"},"21":{"id":204970,"text":"The provisions of § 58.1-623.1 shall apply to the suspension and revocation of exemption certificates issued pursuant to this section, mutatis mutandis.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C13","next_prefix":"E"},"22":{"id":204971,"text":"A cigarette exemption certificate shall only be issued to a taxpayer who:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"23":{"id":204972,"text":"Has a physical place of business in the Commonwealth, owned or leased by him, where a substantial portion of the sales activity of the retail cigarette sales activity of the business is routinely conducted and that (i) satisfies all local zoning regulations; (ii) has sales and office space of at least 250 square feet in a permanent, enclosed building not used as a house, apartment, storage unit, garage, or other building other than a building zoned for retail business; (iii) houses all records required to be maintained pursuant to § 58.1-1007; (iv) is equipped with office equipment, including but not limited to, a desk, a chair, a Point of Sale System, filing space, a working telephone listed in the name of the taxpayer or his business, working utilities, including electricity and provisions for space heating, and an Internet connection and email address; (v) displays a sign and business hours and is open to the public during the listed business hours; and (vi) does not occupy the same physical place of business of any other taxpayer who has been issued a cigarette exemption certificate;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"24":{"id":204973,"text":"Possesses a copy of the (i) corporate charter and articles of incorporation in the case of a corporation, (ii) partnership agreement in the case of a partnership, or (iii) organizational registration from the Virginia State Corporation Commission in the case of an LLC; and","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"25":{"id":204974,"text":"Possesses a local business license, if such local business license is required by the locality where the taxpayer’s physical place of business is located.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"F"},"26":{"id":204975,"text":"A taxpayer with more than one physical place of business shall be required to complete only one application for a cigarette exemption certificate but shall list on the application every physical place of business in the Commonwealth where cigarettes are purchased, stored, or resold by the taxpayer or his affiliate. Upon approval of the application, the Department shall issue a cigarette exemption certificate to the taxpayer. The taxpayer shall be authorized to resell cigarettes only at the locations listed on the application. No cigarette exemption certificate shall be transferrable. For purposes of this subsection, a taxpayer shall be considered to have more than one physical place of business if the taxpayer owns or leases two or more physical locations in the Commonwealth where cigarettes are purchased, stored, or resold.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E3","next_prefix":"G"},"27":{"id":204976,"text":"A cigarette exemption certificate issued to a taxpayer shall bear the address of the physical place of business occupied or to be occupied by the taxpayer in conducting the business of purchasing cigarettes in the Commonwealth. In the event that a taxpayer intends to move the physical place of business listed on a certificate to a new location, he shall provide written notice to the Department at least 30 days in advance of the move. A successful inspection of the new physical place of business shall be required by the Department prior to the issuance of a new cigarette exemption certificate bearing the updated address. If the taxpayer intends to change any of the required information relating to the physical places of business contained in the application for the cigarette exemption certificate submitted pursuant to subsection F, the taxpayer shall file an amendment to the application at least 30 days in advance of such change. The certificate with the original address shall become invalid upon the issuance of the new certificate, or 30 days after notice of the move is provided to the Department, whichever occurs sooner. A taxpayer shall not be required to pay a fee to the Department for the issuance of a new cigarette exemption certificate pursuant to this subsection.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"28":{"id":204977,"text":"The privilege of a taxpayer issued a cigarette exemption certificate to purchase cigarettes shall extend to any authorized representative of such taxpayer. The taxpayer issued a cigarette exemption certificate may be held liable for any violation of this chapter, Chapter 10 (§ 58.1-1000 et seq.), Chapter 10.1 (§ 58.1-1031 et seq.), or any related Department guidelines by such authorized representative.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"29":{"id":204978,"text":"A taxpayer issued a cigarette exemption certificate shall comply with the recordkeeping requirements prescribed in § 58.1-1007 and shall make such records available for audit and inspection as provided therein. A taxpayer issued a cigarette exemption certificate who fails to comply with such requirements shall be subject to the penalties provided in § 58.1-1007.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"30":{"id":204979,"text":"A cigarette exemption certificate granted by the Department shall be valid for five years from the date of issuance. At the end of the five-year period, the cigarette exemption certificate of a taxpayer who qualifies for the expedited application process set forth in subdivision B 3 shall be automatically renewed and no fee shall be required. If a taxpayer does not qualify for the expedited application process, then such taxpayer shall apply to the Department to renew the new cigarette exemption certificate as set forth in subdivision B 1 and shall pay an application fee not to exceed $50 as set forth in subdivision B 2; however, the 30-day waiting period set forth in subdivision B 1 shall not apply.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"31":{"id":204980,"text":"No taxpayer issued a cigarette exemption certificate shall display the certificate, or a copy thereof, in the physical place of business where a substantial portion of the retail cigarette sales activity of the business is routinely conducted.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"32":{"id":204981,"text":"The Tax Commissioner shall develop guidelines implementing the provisions of this section, including but not limited to (i) defining categories of taxpayers who qualify for the expedited process, (ii) prescribing the form of the application for the cigarette exemption certificate, (iii) prescribing the form of the application for the expedited cigarette exemption certificate, (iv) establishing procedures for suspending and revoking the cigarette exemption certificate, and (v) establishing procedures for renewing the cigarette exemption certificate. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K","next_prefix":"M"},"33":{"id":204982,"text":"For the purposes of this section:\n\t\t\t“Authorized representative” means an individual who has an ownership interest in or is a current employee of the taxpayer who possesses a valid cigarette exemption certificate pursuant to this section.","type":"section","prefixes":["M"],"prefix":"M","entire_prefix":"M","prefix_anchor":"M","level":1,"prior_prefix":"L"}},"ancestry":[{"id":12899,"edition_id":1,"name":"Retail Sales and Use Tax","identifier":"6","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:43:59","date_modified":"2026-06-26 03:43:59","permalink":{"id":254543,"object_type":"structure","relational_id":12899,"identifier":"6","token":"58.1\/I\/6","url":"\/58.1\/I\/6\/","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 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This law was first created in 2017. The record of its establishment is cataloged in chapters 112<\/a> and 453<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":77273,"section_number":"58.1-1000","catch_line":"Definitions","order_by":null,"url":"\/58.1-1000\/"},{"id":82681,"section_number":"58.1-1017.4","catch_line":"Documents to be provided at purchase","order_by":null,"url":"\/58.1-1017.4\/"},{"id":69079,"section_number":"58.1-623","catch_line":"Sales or leases presumed subject to tax; exemption certificates","order_by":null,"url":"\/58.1-623\/"}],"refers_to":[{"id":58969,"section_number":"18.2-168","catch_line":"Forging public records, etc","order_by":null,"url":"\/18.2-168\/"},{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":77273,"section_number":"58.1-1000","catch_line":"Definitions","order_by":null,"url":"\/58.1-1000\/"},{"id":79368,"section_number":"58.1-1007","catch_line":"Documents touching purchase, sale, etc., of cigarettes to be kept for three years, subject to inspection; penalty","order_by":null,"url":"\/58.1-1007\/"},{"id":61506,"section_number":"58.1-1017","catch_line":"Sale, purchase, possession, etc., of cigarettes for purpose of evading tax; penalties","order_by":null,"url":"\/58.1-1017\/"},{"id":83402,"section_number":"58.1-1017.1","catch_line":"Possession with intent to distribute tax-paid, contraband cigarettes; penalties","order_by":null,"url":"\/58.1-1017.1\/"},{"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":79972,"section_number":"58.1-1031","catch_line":"Definitions","order_by":null,"url":"\/58.1-1031\/"},{"id":85900,"section_number":"58.1-1817","catch_line":"Installment agreements for the payment of taxes","order_by":null,"url":"\/58.1-1817\/"},{"id":74769,"section_number":"58.1-623.1","catch_line":"Misuse of exemption certificates; suspension of exemptions; penalties","order_by":null,"url":"\/58.1-623.1\/"}],"permalink":{"id":254785,"object_type":"law","relational_id":55956,"identifier":"58.1-623.2","token":"58.1\/I\/6\/58.1-623.2","url":"\/58.1-623.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-623.2\/","token":"58.1\/I\/6\/58.1-623.2","dublin_core":{"Title":"Cigarette exemption certificate","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-623.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. Notwithstanding any other provision of law<\/span>, all sales<\/span> of cigarettes, as defined in \u00a7 58.1-1031<\/a>, bearing Virginia revenue stamps in the Commonwealth<\/span> shall be subject to the tax until the contrary is established. The burden of proving that a sale<\/span> is not taxable is upon the dealer unless he takes from the taxpayer<\/span> a cigarette exemption certificate issued by the Department<\/span> to the taxpayer<\/span> to the effect that the cigarettes are exempt under this chapter for the purposes of resale in the Commonwealth<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The cigarette exemption certificate mentioned in this section shall relieve the person<\/span> who takes such certificate from any liability for the payment or collection of the tax on the sale<\/span> of cigarettes, except upon notice from the Tax Commissioner<\/span> or the taxpayer<\/span> that such certificate is no longer acceptable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If a taxpayer<\/span> who gives a cigarette exemption certificate under this section makes any use<\/span> of the property other than an exempt use<\/span> or retention, demonstration, or display while holding the property for resale or distribution<\/span> in the regular course of business<\/span>, such use<\/span> shall be deemed a taxable sale by the taxpayer<\/span> as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price<\/span> of such retail sale<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. Prior to issuing a cigarette exemption certificate under this section, the Department<\/span> shall conduct a background investigation on the taxpayer<\/span> for the certificate. The Department<\/span> shall not issue<\/span> a cigarette exemption certificate until at least 30 days have passed from the receipt of the application, unless the taxpayer<\/span> qualifies for the expedited process set forth in subdivision 3, or any other expedited process set forth in guidelines issued pursuant to subsection L. If the taxpayer<\/span> does not qualify for the expedited process, the Department<\/span> shall inspect each location listed in the application and verify that any location that resells cigarettes meets the requirements prescribed in subsection E. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A taxpayer<\/span> shall be required to pay an application fee, not to exceed $50, to the Department<\/span> for a cigarette exemption certificate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A taxpayer<\/span> shall be eligible for an expedited process to receive a cigarette exemption certificate if the taxpayer<\/span> possesses, at the time of filing an application for a cigarette exemption certificate, (i) an active license, in good standing, issued by the Department<\/span> of Alcoholic Beverage Control pursuant to Title 4.1, as verified by electronic or other means by the Department<\/span>, or (ii) an active tobacco products tax distributor’s license, in good standing, issued by the Department<\/span> pursuant to § 58.1-1021.04:1<\/a>. The Department<\/span> may identify other categories of taxpayers<\/span> who qualify for an expedited process through guidelines issued pursuant to subsection L. Taxpayers<\/span> that qualify for an expedited process shall not be subject to the background check or the waiting period set forth in subdivision 1, nor shall such taxpayers<\/span> be required to pay the application fee set forth in subdivision 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> If a taxpayer<\/span> has been denied a cigarette exemption certificate, or has been issued a cigarette exemption certificate that has subsequently been suspended or revoked, the Department<\/span> shall not consider an application from the taxpayer<\/span> for a new cigarette exemption certificate for six months from the date of the denial, suspension, or revocation<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Department<\/span> shall deny an application for a cigarette exemption certificate, or suspend or revoke a cigarette exemption certificate previously issued to a taxpayer<\/span>, if the Department<\/span> determines that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The taxpayer<\/span> is a person<\/span> who is not 18 years of age or older; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The taxpayer<\/span> is a person<\/span> who is physically unable to carry on the business<\/span> for which the application for a cigarette exemption certificate is filed, or has been adjudicated incapacitated; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The taxpayer<\/span> has not resided in the Commonwealth<\/span> for at least one year immediately preceding the application, unless in the opinion<\/span> of the Department<\/span>, good cause exists for the taxpayer<\/span> to have not resided in the Commonwealth<\/span> for the immediately preceding year; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The taxpayer<\/span> has not established a physical place of business<\/span> in the Commonwealth<\/span>, as described in subsection E; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A court<\/span> or administrative body having jurisdiction<\/span> has found that the physical place of business<\/span> occupied by the taxpayer<\/span>, as described in subsection E, does not conform to the sanitation, health, construction, or equipment requirements of the governing body of the county, city, or town in which such physical place is located, or to similar requirements established pursuant to the laws<\/span> of the Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The physical place of business<\/span> occupied by the taxpayer<\/span>, as described in subsection E, is not constructed, arranged, or illuminated so as to allow access to and reasonable observation of, any room or area in which cigarettes are to be sold; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The taxpayer<\/span> is not an authorized representative<\/span> of the business<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The taxpayer<\/span> made a material<\/span> misstatement or material<\/span> omission in the application; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> The taxpayer<\/span> has defrauded, or attempted to defraud, the Department<\/span>, or any federal, state, or local government or governmental agency or authority, by making or filing any report, document, or tax return required by statute<\/span> or regulation that is fraudulent or contains a false representation of material<\/span> fact<\/span>, or the taxpayer<\/span> has willfully deceived or attempted to deceive the Department<\/span>, or any federal, state, or local government or governmental agency or authority, by making or maintaining business<\/span> records required by statute<\/span> or regulation that are false or fraudulent; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> The Tax Commissioner<\/span> has determined that the taxpayer<\/span> has misused the certificate; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> The taxpayer<\/span> has knowingly and willfully allowed any individual, other than an authorized representative<\/span>, to use<\/span> the certificate; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> The taxpayer<\/span> has failed to comply with or has been convicted under any of the provisions of this chapter or Chapter 10 (§ 58.1-1000<\/a> et seq.) or any of the rules of the Department<\/span> adopted or promulgated under the authority of this chapter or Chapter 10; however, no certificate shall be denied, suspended, or revoked on the basis of a failure to file a retail sales<\/span> and use<\/span> tax return or remit retail sales<\/span> and use<\/span> tax unless the taxpayer<\/span> is more than 30 days delinquent in any filing or payment and has not entered into an installment agreement pursuant to § 58.1-1817<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> The taxpayer<\/span> has been convicted under the laws<\/span> of any state or of the United States of (i) any robbery<\/span>, extortion, burglary<\/span>, larceny<\/span>, embezzlement<\/span>, gambling, perjury<\/span>, bribery, treason, racketeering, money laundering, other crime<\/span> involving fraud<\/span> under Chapter 6 (§ 18.2-168<\/a> et seq.) of Title 18.2, or crime<\/span> that has the same elements of the offenses<\/span> set forth in § 58.1-1017<\/a> or 58.1-1017.1<\/a>, or (ii) a felony<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The provisions of § 58.1-623.1<\/a> shall apply to the suspension and revocation<\/span> of exemption certificates issued pursuant to this section, mutatis mutandis<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A cigarette exemption certificate shall only be issued to a taxpayer<\/span> who: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Has a physical place of business<\/span> in the Commonwealth<\/span>, owned or leased by him, where a substantial portion of the sales activity of the retail cigarette sales activity of the business<\/span> is routinely conducted and that (i) satisfies all local zoning regulations; (ii) has sales and office space of at least 250 square feet in a permanent, enclosed building not used as a house, apartment, storage<\/span> unit, garage, or other building other than a building zoned for retail business<\/span>; (iii) houses all records required to be maintained pursuant to § 58.1-1007<\/a>; (iv) is equipped with office equipment, including but not limited to, a desk, a chair, a Point of Sale System, filing space, a working telephone listed in the name of the taxpayer<\/span> or his business<\/span>, working utilities, including electricity and provisions for space heating, and an Internet connection and email address; (v) displays a sign and business<\/span> hours and is open to the public during the listed business<\/span> hours; and (vi) does not occupy the same physical place of business<\/span> of any other taxpayer<\/span> who has been issued a cigarette exemption certificate; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Possesses a copy of the (i) corporate charter and articles of incorporation in the case of a corporation, (ii) partnership agreement in the case of a partnership, or (iii) organizational registration from the Virginia State Corporation Commission in the case of an LLC; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Possesses a local business<\/span> license, if such local business<\/span> license is required by the locality where the taxpayer<\/span>’s physical place of business<\/span> is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A taxpayer<\/span> with more than one physical place of business<\/span> shall be required to complete only one application for a cigarette exemption certificate but shall list on the application every physical place of business<\/span> in the Commonwealth<\/span> where cigarettes are purchased, stored, or resold by the taxpayer<\/span> or his affiliate<\/span>. Upon approval of the application, the Department<\/span> shall issue<\/span> a cigarette exemption certificate to the taxpayer<\/span>. The taxpayer<\/span> shall be authorized to resell cigarettes only at the locations listed on the application. No cigarette exemption certificate shall be transferrable. For purposes of this subsection, a taxpayer<\/span> shall be considered to have more than one physical place of business<\/span> if the taxpayer<\/span> owns or leases two or more physical locations in the Commonwealth<\/span> where cigarettes are purchased, stored, or resold. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> A cigarette exemption certificate issued to a taxpayer<\/span> shall bear the address of the physical place of business<\/span> occupied or to be occupied by the taxpayer<\/span> in conducting the business<\/span> of purchasing cigarettes in the Commonwealth<\/span>. In the event that a taxpayer<\/span> intends to move the physical place of business<\/span> listed on a certificate to a new location, he shall provide written notice to the Department<\/span> at least 30 days in advance of the move. A successful inspection of the new physical place of business<\/span> shall be required by the Department<\/span> prior to the issuance of a new cigarette exemption certificate bearing the updated address. If the taxpayer<\/span> intends to change any of the required information relating to the physical places of business<\/span> contained in the application for the cigarette exemption certificate submitted pursuant to subsection F, the taxpayer<\/span> shall file an amendment to the application at least 30 days in advance of such change. The certificate with the original address shall become invalid upon the issuance of the new certificate, or 30 days after notice of the move is provided to the Department<\/span>, whichever occurs sooner. A taxpayer<\/span> shall not be required to pay a fee to the Department<\/span> for the issuance of a new cigarette exemption certificate pursuant to this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The privilege<\/span> of a taxpayer<\/span> issued a cigarette exemption certificate to purchase cigarettes shall extend to any authorized representative<\/span> of such taxpayer<\/span>. The taxpayer<\/span> issued a cigarette exemption certificate may be held liable for any violation of this chapter, Chapter 10 (§ 58.1-1000<\/a> et seq.), Chapter 10.1 (§ 58.1-1031<\/a> et seq.), or any related Department<\/span> guidelines by such authorized representative<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> A taxpayer<\/span> issued a cigarette exemption certificate shall comply with the recordkeeping requirements prescribed in § 58.1-1007<\/a> and shall make such records available for audit and inspection as provided therein. A taxpayer<\/span> issued a cigarette exemption certificate who fails to comply with such requirements shall be subject to the penalties provided in § 58.1-1007<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> A cigarette exemption certificate granted by the Department<\/span> shall be valid for five years from the date of issuance. At the end of the five-year period, the cigarette exemption certificate of a taxpayer<\/span> who qualifies for the expedited application process set forth in subdivision B 3 shall be automatically renewed and no fee shall be required. If a taxpayer<\/span> does not qualify for the expedited application process, then such taxpayer<\/span> shall apply to the Department<\/span> to renew the new cigarette exemption certificate as set forth in subdivision B 1 and shall pay an application fee not to exceed $50 as set forth in subdivision B 2; however, the 30-day waiting period set forth in subdivision B 1 shall not apply. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> No taxpayer<\/span> issued a cigarette exemption certificate shall display the certificate, or a copy thereof, in the physical place of business<\/span> where a substantial portion of the retail cigarette sales activity of the business<\/span> is routinely conducted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> The Tax Commissioner<\/span> shall develop guidelines implementing the provisions of this section, including but not limited to (i) defining categories of taxpayers<\/span> who qualify for the expedited process, (ii) prescribing the form of the application for the cigarette exemption certificate, (iii) prescribing the form of the application for the expedited cigarette exemption certificate, (iv) establishing procedures for suspending and revoking the cigarette exemption certificate, and (v) establishing procedures for renewing the cigarette exemption certificate. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

M.<\/span> For the purposes of this section:\n\t\t\t“Authorized representative<\/span>” means an individual who has an ownership interest in or is a current employee of the taxpayer<\/span> who possesses a valid cigarette exemption certificate pursuant to this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCIGARETTE EXEMPTION CERTIFICATE (\u00a7 58.1-623.2)\n\nA. 1. Notwithstanding any other provision of law, all sales of cigarettes, as\ndefined in \u00a7 58.1-1031, bearing Virginia revenue stamps in the Commonwealth\nshall be subject to the tax until the contrary is established. The burden of\nproving that a sale is not taxable is upon the dealer unless he takes from the\ntaxpayer a cigarette exemption certificate issued by the Department to the\ntaxpayer to the effect that the cigarettes are exempt under this chapter for the\npurposes of resale in the Commonwealth.\n\n 2. The cigarette exemption certificate mentioned in this section shall relieve\n the person who takes such certificate from any liability for the payment or\n collection of the tax on the sale of cigarettes, except upon notice from the\n Tax Commissioner or the taxpayer that such certificate is no longer\n acceptable.\n\n 3. If a taxpayer who gives a cigarette exemption certificate under this\n section makes any use of the property other than an exempt use or retention,\n demonstration, or display while holding the property for resale or\n distribution in the regular course of business, such use shall be deemed a\n taxable sale by the taxpayer as of the time the property or service is first\n used by him, and the cost of the property to him shall be deemed the sales\n price of such retail sale.\n\nB. 1. Prior to issuing a cigarette exemption certificate under this section, the\nDepartment shall conduct a background investigation on the taxpayer for the\ncertificate. The Department shall not issue a cigarette exemption certificate\nuntil at least 30 days have passed from the receipt of the application, unless\nthe taxpayer qualifies for the expedited process set forth in subdivision 3, or\nany other expedited process set forth in guidelines issued pursuant to\nsubsection L. If the taxpayer does not qualify for the expedited process, the\nDepartment shall inspect each location listed in the application and verify that\nany location that resells cigarettes meets the requirements prescribed in\nsubsection E.\n\n 2. A taxpayer shall be required to pay an application fee, not to exceed $50,\n to the Department for a cigarette exemption certificate.\n\n 3. A taxpayer shall be eligible for an expedited process to receive a\n cigarette exemption certificate if the taxpayer possesses, at the time of\n filing an application for a cigarette exemption certificate, (i) an active\n license, in good standing, issued by the Department of Alcoholic Beverage\n Control pursuant to Title 4.1, as verified by electronic or other means by the\n Department, or (ii) an active tobacco products tax distributor’s\n license, in good standing, issued by the Department pursuant to §\n 58.1-1021.04:1. The Department may identify other categories of taxpayers who\n qualify for an expedited process through guidelines issued pursuant to\n subsection L. Taxpayers that qualify for an expedited process shall not be\n subject to the background check or the waiting period set forth in subdivision\n 1, nor shall such taxpayers be required to pay the application fee set forth\n in subdivision 2.\n\n 4. If a taxpayer has been denied a cigarette exemption certificate, or has\n been issued a cigarette exemption certificate that has subsequently been\n suspended or revoked, the Department shall not consider an application from\n the taxpayer for a new cigarette exemption certificate for six months from the\n date of the denial, suspension, or revocation.\n\nC. The Department shall deny an application for a cigarette exemption\ncertificate, or suspend or revoke a cigarette exemption certificate previously\nissued to a taxpayer, if the Department determines that:\n\n 1. The taxpayer is a person who is not 18 years of age or older;\n\n 2. The taxpayer is a person who is physically unable to carry on the business\n for which the application for a cigarette exemption certificate is filed, or\n has been adjudicated incapacitated;\n\n 3. The taxpayer has not resided in the Commonwealth for at least one year\n immediately preceding the application, unless in the opinion of the\n Department, good cause exists for the taxpayer to have not resided in the\n Commonwealth for the immediately preceding year;\n\n 4. The taxpayer has not established a physical place of business in the\n Commonwealth, as described in subsection E;\n\n 5. A court or administrative body having jurisdiction has found that the\n physical place of business occupied by the taxpayer, as described in\n subsection E, does not conform to the sanitation, health, construction, or\n equipment requirements of the governing body of the county, city, or town in\n which such physical place is located, or to similar requirements established\n pursuant to the laws of the Commonwealth;\n\n 6. The physical place of business occupied by the taxpayer, as described in\n subsection E, is not constructed, arranged, or illuminated so as to allow\n access to and reasonable observation of, any room or area in which cigarettes\n are to be sold;\n\n 7. The taxpayer is not an authorized representative of the business;\n\n 8. The taxpayer made a material misstatement or material omission in the\n application;\n\n 9. The taxpayer has defrauded, or attempted to defraud, the Department, or any\n federal, state, or local government or governmental agency or authority, by\n making or filing any report, document, or tax return required by statute or\n regulation that is fraudulent or contains a false representation of material\n fact, or the taxpayer has willfully deceived or attempted to deceive the\n Department, or any federal, state, or local government or governmental agency\n or authority, by making or maintaining business records required by statute or\n regulation that are false or fraudulent;\n\n 10. The Tax Commissioner has determined that the taxpayer has misused the\n certificate;\n\n 11. The taxpayer has knowingly and willfully allowed any individual, other\n than an authorized representative, to use the certificate;\n\n 12. The taxpayer has failed to comply with or has been convicted under any of\n the provisions of this chapter or Chapter 10 (§ 58.1-1000 et seq.) or any\n of the rules of the Department adopted or promulgated under the authority of\n this chapter or Chapter 10; however, no certificate shall be denied,\n suspended, or revoked on the basis of a failure to file a retail sales and use\n tax return or remit retail sales and use tax unless the taxpayer is more than\n 30 days delinquent in any filing or payment and has not entered into an\n installment agreement pursuant to § 58.1-1817; or\n\n 13. The taxpayer has been convicted under the laws of any state or of the\n United States of (i) any robbery, extortion, burglary, larceny, embezzlement,\n gambling, perjury, bribery, treason, racketeering, money laundering, other\n crime involving fraud under Chapter 6 (§ 18.2-168 et seq.) of Title 18.2,\n or crime that has the same elements of the offenses set forth in §\n 58.1-1017 or 58.1-1017.1, or (ii) a felony.\n\nD. The provisions of § 58.1-623.1 shall apply to the suspension and\nrevocation of exemption certificates issued pursuant to this section, mutatis\nmutandis.\n\nE. A cigarette exemption certificate shall only be issued to a taxpayer who:\n\n 1. Has a physical place of business in the Commonwealth, owned or leased by\n him, where a substantial portion of the sales activity of the retail cigarette\n sales activity of the business is routinely conducted and that (i) satisfies\n all local zoning regulations; (ii) has sales and office space of at least 250\n square feet in a permanent, enclosed building not used as a house, apartment,\n storage unit, garage, or other building other than a building zoned for retail\n business; (iii) houses all records required to be maintained pursuant to\n § 58.1-1007; (iv) is equipped with office equipment, including but not\n limited to, a desk, a chair, a Point of Sale System, filing space, a working\n telephone listed in the name of the taxpayer or his business, working\n utilities, including electricity and provisions for space heating, and an\n Internet connection and email address; (v) displays a sign and business hours\n and is open to the public during the listed business hours; and (vi) does not\n occupy the same physical place of business of any other taxpayer who has been\n issued a cigarette exemption certificate;\n\n 2. Possesses a copy of the (i) corporate charter and articles of incorporation\n in the case of a corporation, (ii) partnership agreement in the case of a\n partnership, or (iii) organizational registration from the Virginia State\n Corporation Commission in the case of an LLC; and\n\n 3. Possesses a local business license, if such local business license is\n required by the locality where the taxpayer’s physical place of business\n is located.\n\nF. A taxpayer with more than one physical place of business shall be required to\ncomplete only one application for a cigarette exemption certificate but shall\nlist on the application every physical place of business in the Commonwealth\nwhere cigarettes are purchased, stored, or resold by the taxpayer or his\naffiliate. Upon approval of the application, the Department shall issue a\ncigarette exemption certificate to the taxpayer. The taxpayer shall be\nauthorized to resell cigarettes only at the locations listed on the application.\nNo cigarette exemption certificate shall be transferrable. For purposes of this\nsubsection, a taxpayer shall be considered to have more than one physical place\nof business if the taxpayer owns or leases two or more physical locations in the\nCommonwealth where cigarettes are purchased, stored, or resold.\n\nG. A cigarette exemption certificate issued to a taxpayer shall bear the address\nof the physical place of business occupied or to be occupied by the taxpayer in\nconducting the business of purchasing cigarettes in the Commonwealth. In the\nevent that a taxpayer intends to move the physical place of business listed on a\ncertificate to a new location, he shall provide written notice to the Department\nat least 30 days in advance of the move. A successful inspection of the new\nphysical place of business shall be required by the Department prior to the\nissuance of a new cigarette exemption certificate bearing the updated address.\nIf the taxpayer intends to change any of the required information relating to\nthe physical places of business contained in the application for the cigarette\nexemption certificate submitted pursuant to subsection F, the taxpayer shall\nfile an amendment to the application at least 30 days in advance of such change.\nThe certificate with the original address shall become invalid upon the issuance\nof the new certificate, or 30 days after notice of the move is provided to the\nDepartment, whichever occurs sooner. A taxpayer shall not be required to pay a\nfee to the Department for the issuance of a new cigarette exemption certificate\npursuant to this subsection.\n\nH. The privilege of a taxpayer issued a cigarette exemption certificate to\npurchase cigarettes shall extend to any authorized representative of such\ntaxpayer. The taxpayer issued a cigarette exemption certificate may be held\nliable for any violation of this chapter, Chapter 10 (§ 58.1-1000 et seq.),\nChapter 10.1 (§ 58.1-1031 et seq.), or any related Department guidelines by\nsuch authorized representative.\n\nI. A taxpayer issued a cigarette exemption certificate shall comply with the\nrecordkeeping requirements prescribed in § 58.1-1007 and shall make such\nrecords available for audit and inspection as provided therein. A taxpayer\nissued a cigarette exemption certificate who fails to comply with such\nrequirements shall be subject to the penalties provided in § 58.1-1007.\n\nJ. A cigarette exemption certificate granted by the Department shall be valid\nfor five years from the date of issuance. At the end of the five-year period,\nthe cigarette exemption certificate of a taxpayer who qualifies for the\nexpedited application process set forth in subdivision B 3 shall be\nautomatically renewed and no fee shall be required. If a taxpayer does not\nqualify for the expedited application process, then such taxpayer shall apply to\nthe Department to renew the new cigarette exemption certificate as set forth in\nsubdivision B 1 and shall pay an application fee not to exceed $50 as set forth\nin subdivision B 2; however, the 30-day waiting period set forth in subdivision\nB 1 shall not apply.\n\nK. No taxpayer issued a cigarette exemption certificate shall display the\ncertificate, or a copy thereof, in the physical place of business where a\nsubstantial portion of the retail cigarette sales activity of the business is\nroutinely conducted.\n\nL. The Tax Commissioner shall develop guidelines implementing the provisions of\nthis section, including but not limited to (i) defining categories of taxpayers\nwho qualify for the expedited process, (ii) prescribing the form of the\napplication for the cigarette exemption certificate, (iii) prescribing the form\nof the application for the expedited cigarette exemption certificate, (iv)\nestablishing procedures for suspending and revoking the cigarette exemption\ncertificate, and (v) establishing procedures for renewing the cigarette\nexemption certificate. Such guidelines shall be exempt from the provisions of\nthe Administrative Process Act (§ 2.2-4000 et seq.).\n\nM. For the purposes of this section:\n\t\t\t“Authorized representative” means an individual who has an\nownership interest in or is a current employee of the taxpayer who possesses a\nvalid cigarette exemption certificate pursuant to this section.\n\nHISTORY: 2017, cc. 112, 453.","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}}