Bill Text: VA HB1099 | 2024 | Regular Session | Comm Sub
Bill Title: Heated tobacco; definitions, tax levied.
Spectrum: Bipartisan Bill
Status: (Passed) 2024-04-08 - Governor: Acts of Assembly Chapter text (CHAP0611) [HB1099 Detail]
Download: Virginia-2024-HB1099-Comm_Sub.html
Be it enacted by the General Assembly of Virginia:
1. That §§58.1-1000 and 58.1-1001 of the Code of Virginia are amended and reenacted as follows:
§58.1-1000. Definitions.
As used in this chapter, unless the context clearly shows otherwise, the term or phrase:
"Authorized holder" means (i) a manufacturer; (ii) a wholesale dealer who is not duly qualified as a wholesale dealer stamping agent, but who possesses, or whose affiliate possesses, a valid cigarette exemption certificate issued pursuant to §58.1-623.2; (iii) a stamping agent; (iv) a retail dealer who possesses, or whose affiliate possesses, a valid cigarette exemption certificate issued pursuant to §58.1-623.2; (v) an exclusive distributor; (vi) an officer, employee, or other agent of the United States or a state, or any department, agency, or instrumentality of the United States, a state, or a political subdivision of a state, having possession of cigarettes in connection with the performance of official duties; (vii) a person properly holding cigarettes that do not require stamps or tax payment pursuant to §58.1-1010; or (viii) a common or contract carrier transporting cigarettes under a proper bill of lading or other documentation indicating the true name and address of the consignor or seller and the consignee or purchaser of the brands and the quantities being transported. Any person convicted of (a) any criminal offense under this chapter; (b) any offense involving the forgery of any documents, forms, invoices, or receipts related to the purchase or sale of cigarettes or the purchase or sale of tobacco products as defined in § 58.1-1021.01; (c) any offense involving evasion or failure to pay a cigarette or tobacco product excise tax; or (d) any similar violation of an ordinance of any county, city, or town in the Commonwealth or the laws of any other state or of the United States is ineligible to be an authorized holder. For the purposes of this definition, "affiliate" means any entity that is a member of the same affiliated group, as such term is defined in §58.1-3700.1.
"Carton" means 10 packs of cigarettes, each containing 20 cigarettes or eight packs, each containing 25 cigarettes.
"Cigarette" means any product that contains
nicotine, is intended to be burned and produces smoke from combustion
or heated under ordinary conditions of use, and consists of or contains (i)
any roll of tobacco wrapped in paper or in any substance not containing
tobacco; (ii) tobacco, in any form, that is burned and functional in the
product, which, because of its appearance, the type of tobacco used in the
filler, or its packaging and labeling, is likely to be offered to, or purchased
by, consumers as a cigarette; or (iii) any roll of tobacco wrapped in any substance
containing tobacco which, because of its appearance, the type of tobacco used
in the filler, or its packaging and labeling, is likely to be offered to, or
purchased by, consumers as a cigarette described in clause (i) of this
definition. The term "cigarette" includes "roll-your-own"
tobacco, which means any tobacco which, because of its appearance, type,
packaging, or labeling, is suitable for use and likely to be offered to, or
purchased by, consumers as tobacco for making cigarettes. For purposes of this
definition of "cigarette," 0.09 ounces of "roll-your-own"
tobacco shall constitute one individual "cigarette." For purposes
of the tax imposed by this chapter, "cigarette" includes heated
tobacco products, as that term is defined §58.1-1021.01.
"Exclusive distributor" means any individual, corporation, limited liability company, or limited liability partnership with its principal place of business in the Commonwealth that has the sole and exclusive rights to sell to wholesale dealers in the Commonwealth a brand family of cigarettes manufactured by a tobacco product manufacturer as defined in §3.2-4200.
"Manufacturer" means any tobacco product manufacturer as defined in §3.2-4200.
"Pack" means a package containing either 20 or 25 cigarettes.
"Retail dealer" includes every person other than a wholesale dealer, as defined in this section, who sells or offers for sale any cigarettes and who is properly registered as a retail trade with the Commonwealth in accordance with the Virginia Department of Taxation Business Registration Application (Form R-1).
"Retail sale" or "sale at retail" includes all sales except sales by wholesale dealers to retail dealers or other wholesale dealers for resale.
"Stamping agent" has the same meaning as provided in §3.2-4204. For the purposes of provisions relating to "roll-your-own" tobacco, "stamping agent" includes "distributor" as that term is defined in §58.1-1021.01.
"Stamps" means the stamp or stamps by the use of which the tax levied under this chapter is paid and shall be officially designated as Virginia revenue stamps. The Department is hereby authorized to provide for the use of any type of stamp that will effectuate the purposes of this chapter, including but not limited to decalcomania and metering devices.
"Storage" means any keeping or retention in the Commonwealth of cigarettes for any purpose except sale in the regular course of business or subsequent use solely outside the Commonwealth.
"Tax-paid cigarettes" means cigarettes that (i) bear valid Virginia stamps to evidence payment of excise taxes or (ii) were purchased outside of the Commonwealth and either (a) bear a valid tax stamp for the state in which the cigarettes were purchased or (b) when no tax stamp is required by the state, proper evidence can be provided to establish that applicable excise taxes have been paid.
"Use" means the exercise of any right or power over cigarettes incident to the ownership thereof or by any transaction where possession is given, except that it does not include the sale of cigarettes in the regular course of business.
"Wholesale dealer" includes persons who are properly registered as tobacco product merchant wholesalers with the Commonwealth in accordance with the Virginia Department of Taxation Business Registration Application (Form R-1) and who (i) sell cigarettes at wholesale only to retail dealers for the purpose of resale only or (ii) sell at wholesale to institutional, commercial, or industrial users. "Wholesale dealer" also includes chain store distribution centers or houses that distribute cigarettes to their stores for sale at retail.
§58.1-1001. Tax levied; rate.
A. 1. Except as provided in subdivision 2 or
subsection B, in addition to all other taxes now imposed by law, every person
within this the Commonwealth who sells, stores, or
receives cigarettes made of tobacco or any substitute thereof, for the purpose
of distribution to any person within this the Commonwealth, shall
pay to this the Commonwealth an excise tax of one and one-quarter
mills on each such cigarette sold, stored, or received before August 1,
2004; an excise tax of one cent on each such cigarette sold, stored, or
received on and after August 1, 2004, through midnight on June 30, 2005; and
an excise tax of 1.5 cents on each such cigarette sold, stored, or
received on and after July 1, 2005, but before July 1, 2020; and an excise
tax of three cents on each cigarette sold, stored, or received on and after
July 1, 2020.
2. In addition to all other taxes now imposed by law, every person within the Commonwealth who sells, stores, or receives cigarettes intended to be heated for the purpose of distribution to any person within the Commonwealth shall pay to the Commonwealth an excise tax at the rate of 2.25 cents per stick on each such cigarette sold, stored, or received on and after January 1, 2021.
B. In addition to all other taxes now imposed by law, every
person within the Commonwealth who sells, stores, or receives roll-your-own
tobacco, for the purpose of distribution within the Commonwealth, shall pay to
the Commonwealth a cigarette excise tax at the rate of 10% 10 percent
of the manufacturer's sales price of such roll-your-own tobacco.
C. The revenues generated by the taxes imposed under this section on and after August 1, 2004, shall be collected by the Department and deposited into the Virginia Health Care Fund established under §32.1-366.
D. The provisions of this section shall not apply to members of federal, state, county, city, or town law-enforcement agencies when possession of unstamped cigarettes is necessary in the performance of investigatory duties.
