                                 CODE OF VIRGINIA

PENALTY FOR FAILING TO AFFIX STAMPS; SUBSEQUENT VIOLATIONS OF ARTICLE (§
58.1-1013)

Any person who has been issued a permit to affix revenue stamps by the
Department and fails to properly affix the required stamps to any cigarettes
pursuant to the provisions of this chapter shall be required to pay as part of
the tax imposed hereunder, a civil penalty, to be assessed and collected by the
Department as other taxes are collected, of (i) $2.50 per pack, up to $500, for
the first violation by a legal entity within a 36-month period; (ii) $5.00 per
pack, up to $1,000, for the second violation by the legal entity within a
36-month period; and (iii) $10 per pack, up to $50,000, for the third and any
subsequent violation by the legal entity within a 36-month period. Where willful
intent exists to defraud the Commonwealth of the tax levied under this chapter,
such person shall be required to pay a civil penalty of $25 per pack, up to
$250,000. It shall be prima facie evidence of intent to defraud when the number
of such unstamped cigarettes exceeds either 30 packs or five percent of the
cigarettes in the place of business of such person, whichever is greater.
Notwithstanding the immediately preceding threshold limits, if the number of
unstamped packs exceeds 500 packs, it shall be prima facie evidence of intent to
defraud.
		Any cigarettes in the place of business of any person required by the
provisions of this chapter to stamp the same shall be prima facie evidence that
they are intended for sale.
		No civil penalty shall be imposed under this section for any unstamped
cigarettes if a civil penalty under § 58.1-1017 has been paid for such
unstamped cigarettes.

HISTORY: Code 1950, § 58-757.12; 1960, c. 392, § 12; 1984, c. 675; 2004, c.
1029; 2006, c. 409; 2010, cc. 35, 471.