                                 CODE OF VIRGINIA

LOCAL ORDINANCES TO ADMINISTER AND ENFORCE LOCAL TAXES ON SALE OR USE OF
CIGARETTES (§ 58.1-3832)

Any county, city or town having a tax upon the sale or use of cigarettes may by
ordinance, provide for the administration and enforcement of any such cigarette
tax. Such local ordinance may:

1. Provide for the registration of any distributor, wholesaler, vendor, retailer
or other person selling, storing or possessing cigarettes within or transporting
cigarettes within or into such taxing jurisdiction for sale or use. Such
registration may be conditioned upon the filing of a bond with a surety company
authorized to do business in Virginia as surety, which bond shall not exceed one
and one-half times the average monthly liability of such taxpayer. The county,
city or town may revoke registration if such bond is impaired, but for no other
reason. Any such distributor, wholesaler, retailer or other person whose
business and residence is outside the taxing jurisdiction, who shall sell, store
or possess in the taxing jurisdiction therein any cigarettes shall, by virtue of
such sale, storage or possession submit himself to its legal jurisdiction and
appoint as his attorney for any service of lawful process such officer or person
as may be designated in the local ordinance for that purpose. A copy of any such
process served on the said officer or person shall be sent forthwith by
registered mail to the distributor, wholesaler or retailer.

2. Provide for the use of a tax stamp or meter impression as evidence of payment
of the tax or other method or system of reporting payment and collection of such
tax. Any local tax stamp or meter impression required to be used to evidence
payment of the tax shall be of the same stamp technology that is used or
required by the Commonwealth for the state cigarette tax stamp pursuant to
Chapter 10 (&#xA7; 58.1-1000 et seq.). The purchase price of any tax stamps
purchased under this section shall be refunded, without penalties or additional
fees, upon verification by the county, city, or town imposing the tax that the
stamps have been returned to such county, city, or town.

3. Provide that tobacco products found in quantities of more than six cartons
within the taxing jurisdiction shall be conclusively presumed for sale or use
within the jurisdiction and may be seized and confiscated if:
			a. They are in transit, and are not accompanied by a bill of lading or other
document indicating the true name and address of the consignor or seller and of
the consignee or purchaser, and the brands and quantity of cigarettes so
transported, or are in transit and accompanied by a bill of lading or other
document which is false or fraudulent, in whole or in part; or
			b. They are in transit and are accompanied by a bill of lading or other
document indicating:

   1. A consignee or purchaser in another state or the District of Columbia who
   is not authorized by the law of such other jurisdiction to receive or possess
   such tobacco products on which the taxes imposed by such other jurisdiction
   have not been paid, unless the tax of the state or District of destination has
   been paid and the said products bear the tax stamps of that state or District;
   or

   2. A consignee or purchaser in the Commonwealth of Virginia but outside the
   taxing jurisdiction who does not possess a Virginia sales and use tax
   certificate, a Virginia retail cigarette license and, where applicable, both a
   business license and retail cigarette license issued by the local jurisdiction
   of destination; or
   				c. They are not in transit and the tax has not been paid, nor have
   approved arrangements for payment been made, provided that this subparagraph
   shall not apply to cigarettes in the possession of distributors or public
   warehouses which have filed notice and appropriate proof with the taxing
   jurisdiction that those cigarettes are temporarily within the taxing
   jurisdiction and will be sent to consignees or purchasers outside the
   jurisdiction in the normal course of business.

4. Provide that cigarettes and other property, other than motor vehicles, used
in the furtherance of any illegal evasion of the tax so seized and confiscated
may be disposed of by sale or other method deemed appropriate by the local
taxing authority. No credit from any sale or other disposition shall be allowed
toward any tax or penalties owed.

5. Provide that persons violating any provision thereof shall be deemed guilty
of a Class 1 misdemeanor, and require the payment of penalties for late payment
not to exceed 10 percent per month, penalties for fraud or evasion of the tax
not to exceed 50 percent, and interest not to exceed three quarters of one
percent per month, upon any tax found to be overdue and unpaid. The mere
possession of untaxed cigarettes in quantities of not more than six cartons
shall not be a violation of any such ordinance.

6. Provide for the forfeiture and sale of any property seized; provided,
however, that proper notice of such seizure shall be given to the known holders
of property interests in such property and shall include procedures for
administrative appeal as well as affirmative defenses which may be asserted by
such holders which procedures must be set forth in reasonable detail.

7. Provide that any coin-operated vending machine, in which any cigarettes are
found, stored or possessed bearing a counterfeit or bogus cigarette tax stamp or
impression or any unstamped tobacco products, or any cigarettes upon which the
tax has not been paid, may be declared contraband property and shall be subject
to confiscation and sale as provided in subsection 6. When any such vending
machine is found containing such cigarettes it shall be presumed that such
cigarettes were intended for distribution, sale or use therefrom. In lieu of
immediate seizure and confiscation of any vending machines used in an illegal
evasion of the tax it may be sealed by appropriate enforcement authorities to
prevent continued illegal sale or removal of any cigarettes, and may be left
unmoved until other civil and criminal penalties are imposed or waived. Notice
requirements shall be the same as if the machine had been seized. Such seal may
be removed and the machine declared eligible for operation only by authorized
enforcement authorities. Nothing in this section shall prevent seizure and
confiscation of a vending machine at any time after it is sealed.

8. Provide that any counterfeit stamps or counterfeit impression devices may
also be seized and confiscated.

9. Any county, city or town may enact an ordinance which would delegate its
administrative and enforcement authority under its cigarette tax ordinance to
one agency or authority pursuant to the provisions of &#xA7; 15.2-1300. Such
agency or authority may promulgate rules and regulations governing the display
of cigarette stamps in vending machines, tax liens against property of taxpayers
hereunder, extend varying discount rates and establish different classes of
taxpayers or those required to collect and remit the tax, requirements
concerning keeping and production of records, administrative and jeopardy
assessment of tax where reasonably justified, required notice to authorities of
sale of taxpayer&#8217;s business, audit requirements and authority, and
criteria for authority of distributors and others to possess untaxed cigarettes
and any other provisions consistent with the powers granted by this section or
necessarily implied therefrom. Such ordinance may further provide that such
agency or authority created may issue a common revenue stamp, employ legal
counsel, bring appropriate court action, in its own name where necessary to
enforce payment of the cigarette taxes or penalties owed any member jurisdiction
and provide cigarette tax agents, and the necessary enforcement supplies and
equipment needed to effectively enforce the cigarette tax ordinance promulgated
by each such county, city or town. Any cigarette tax agents shall meet such
requirements of training or experience as may be promulgated from time to time
by the enforcement authority when performing their duties and shall be required
to carry proper identification and may be armed for their own protection and for
the enforcement of such ordinance. Any such agent shall have the power of arrest
upon reasonable and probable cause that a violation of any tobacco tax ordinance
has been committed. Any common revenue stamp issued by such agency or authority
shall be of the same stamp technology that is used or required by the
Commonwealth for the state cigarette tax stamp pursuant to Chapter 10 (&#xA7;
58.1-1000 et seq.).

HISTORY: Code 1950, § 58-757.29; 1974, c. 472; 1977, c. 595; 1984, c. 675;
2012, cc. 89, 258; 2017, c. 113.