                                 CODE OF VIRGINIA

LOCAL CIGARETTE TAXES AUTHORIZED; USE OF DUAL DIE OR STAMP TO EVIDENCE PAYMENT
(§ 58.1-3830)

A. Any locality is authorized to levy taxes upon the sale or use of cigarettes.
The governing body of any locality that levies a cigarette tax and permits the
use of meter impressions or stamps to evidence its payment may authorize an
officer of the local or joint enforcement authority to enter into an arrangement
with the Department of Taxation under which a tobacco wholesaler who so desires
may use a dual die or stamp to evidence the payment of both the local tax and
the state tax, and the Department is hereby authorized to enter into such an
arrangement. The procedure under such an arrangement shall be such as may be
agreed upon by and between the authorized local or joint enforcement authority
officer and the Department.

B. Any county cigarette tax imposed shall not apply within the limits of any
town located in such county where such town now, or hereafter, imposes a town
cigarette tax. However, if the governing body of any such town shall provide
that a county cigarette tax, as well as the town cigarette tax, shall apply
within the limits of such town, then such cigarette tax may be imposed by the
county within such town.

C. The maximum tax rate imposed by a locality on cigarettes pursuant to the
provisions of this section shall be as follows:

   1. If such locality is (i) a city or town that, on January 1, 2020, had in
   effect a rate not exceeding two cents ($0.02) per cigarette sold or (ii) a
   county, then the maximum rate shall be two cents ($0.02) per cigarette sold.

   2. If such locality is a city or town that, on January 1, 2020, had in effect
   a rate exceeding two cents ($0.02) per cigarette sold, then the maximum rate
   shall be the rate in effect on January 1, 2020.

D. Any locality that increases its tax rate shall, for one calendar year after
the increase, allow a person with unsold inventory to pay the tax increase on
the unsold inventory by filing a return, rather than requiring the use of a
stamp or meter impression. Such return shall identify the amount of unsold
inventory, the amount of tax paid on such unsold inventory, and the amount of
tax due as a result of the tax rate increase. Such return shall be due six
calendar months after the effective date of the tax rate increase. For purposes
of this subsection, &#8220;unsold inventory&#8221; means cigarettes held prior
to the tax rate increase.

HISTORY: Code 1950, § 58-757.27; 1960, c. 392, § 27; 1962, c. 473; 1977, c.
595; 1984, c. 675; 2020, cc. 1214, 1263; 2021, Sp. Sess. I, c. 61; 2022, cc.
223, 224.