                                 CODE OF VIRGINIA

UNLAWFUL IMPORTATION, TRANSPORTATION, OR POSSESSION OF TOBACCO PRODUCTS; CIVIL
PENALTY (§ 58.1-1021.04:3)

A. It shall be unlawful for any person who is not a licensed distributor in the
Commonwealth pursuant to this article to import, transport, or possess, for
resale, any tobacco products in the Commonwealth, or under circumstances and
conditions that indicate that tobacco products are being imported, transported,
or possessed in a manner as to knowingly and intentionally evade or attempt to
evade the tax imposed by this article. Such tobacco products shall be subject to
seizure, forfeiture, and destruction by any law-enforcement officer of the
Commonwealth. All fixtures, equipment, materials, and personal property used in
substantial connection with the sale or possession of tobacco products involved
in a knowing and intentional violation of this article shall be subject to
seizure and forfeiture according to the procedures contained in Chapter 22.1
(&#xA7; 19.2-386.1 et seq.) of Title 19.2, applied mutatis mutandis.

B. Any person, except as otherwise provided by law, who imports, transports, or
possesses for resale tobacco products upon which the tax imposed by this article
has not been paid shall be required to pay any tax owed pursuant to this
article. In addition, if such person imports, transports, or possesses such
tobacco products in such a manner as to knowingly and intentionally evade or
attempt to evade the tax imposed by this article, he shall be required to pay a
civil penalty of (i) $2.50 per tobacco product, up to $500, for the first
violation by the person within a 36-month period; (ii) $5 per tobacco product,
up to $1,000, for the second violation by the person within a 36-month period;
and (iii) $10 per tobacco product, up to $50,000, for the third or subsequent
violation by the person within a 36-month period, to be assessed and collected
by the Department as other taxes are collected. In addition, where willful
intent exists to defraud the Commonwealth of the tax levied under this article,
such person shall be required to pay a civil penalty of $25 per tobacco product,
up to $250,000.

HISTORY: 2005, c. 71; 2014, cc. 38, 177.