Bill Text: VA HB2332 | 2013 | Regular Session | Introduced
Bill Title: Tobacco products; abolishes 10% tax on distributor, etc., licensure of retailers
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-05 - Left in Finance [HB2332 Detail]
Download: Virginia-2013-HB2332-Introduced.html
13103657D Be it enacted by the General Assembly of Virginia: 1. That §§58.1-1021.02, 58.1-1021.03, and 58.1-1021.04 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding sections numbered 58.1-1021.02:2, 58.1-1021.04:6, and 58.1-1021.04:7 as follows: §58.1-1021.02. Tax on tobacco products. A. In addition to all other taxes now imposed by law, there is
hereby imposed a tax 1. Upon each package of moist snuff, at the rate of 2. For purposes of the tax under this article, loose leaf
tobacco shall be classified as loose leaf tobacco single-units, loose leaf
tobacco half pound-units, and loose leaf tobacco pound-units. Such tax shall be
imposed
3. Upon tobacco products other than moist snuff or loose leaf
tobacco, at the rate of Such tax shall be imposed at the time the B. No tax shall be imposed pursuant to this section upon tobacco products not within the taxing power of the Commonwealth under the Commerce Clause of the United States Constitution.
§58.1-1021.03. Monthly return and payments of tax. A. Every B. For the purpose of compensating
retail dealers for accounting for the tax imposed under
this article, a retail dealer The Tax Commissioner shall prepare for each fiscal year an
estimate of the total amount of all discounts allowed to retail §58.1-1021.04. Failure to file return; fraudulent return; penalties; interest; overpayment of tax. A. When any B. It shall be prima facie evidence of intent to defraud the
Commonwealth of any tax due under this article when any C. Interest at a rate determined in accordance with §58.1-15 shall accrue on the tax until the same is paid. No deficiency, interest or penalty shall be assessed for any month after the expiration of three years from the date set for the filing of the return for such month, except in cases of fraud, or where no return has been filed for such month. D. If the Tax Commissioner determines that the amount paid the
Commonwealth under this article in regard to any monthly return was greater
than the amount of tax due the Commonwealth, the excess may be taken as a
credit by the §58.1-1021.04:6. Retail dealer's license; penalty. A. No person shall engage in the business of selling tobacco products as a retail dealer in the Commonwealth without first having received a separate license from the Department for each location or place of business. Each application for a retail dealer's license shall be accompanied by a $30 fee per year per location or place of business. Every application for such license shall be made on a form prescribed by the Department, and the following information shall be provided on the application: 1. The name and address of the applicant. If the applicant is a firm, partnership, or association, the name and address of each of its members shall be provided. If the applicant is a corporation, the name and address of each of its principal officers shall be provided; 2. The address of the applicant's principal place of business; 3. The address of the place or places where the business to be licensed is to be conducted; and 4. Such other information as the Department may require for the purpose of the administration of this article. B. Once a license is granted pursuant to this section, such person shall be entitled to act as a licensed retail dealer and, unless such person maintains a registered agent pursuant to Chapter 9 (§ 13.1-601 et seq.), 10 (§ 13.1-801 et seq.), 12 (§ 13.1-1000 et seq.) or 14 (§ 13.1-1200 et seq.) of Title 13.1 or Chapter 2.1 (§50-73.1 et seq.) or 2.2 (§50-73.79 et seq.) of Title 50, shall be deemed to have appointed the Clerk of the State Corporation Commission as the person's agent for the purpose of service of process relating to any matter or issue involving the person and arising under the provisions of this article. The Department shall conduct a background investigation, to include a Virginia criminal history records search and fingerprints of the applicant, or the responsible principals, managers, and other persons engaged in handling tobacco products at the licensable locations, that shall be submitted to the Federal Bureau of Investigation if the Department deems a national criminal records search necessary, on applicants for licensure as tobacco products retail dealers. The Department may refuse to issue a retail dealer's license or may suspend, revoke, or refuse to renew a retail dealer's license issued to any person, partnership, corporation, limited liability company, or business trust if it determines that the principal, manager, or other person engaged in handling tobacco products at the licensable location of the applicant has been (i) found guilty of any fraud or misrepresentation in any connection; (ii) convicted of robbery, extortion, burglary, larceny, embezzlement, fraudulent conversion, gambling, perjury, bribery, treason, or racketeering; or (iii) convicted of any other felony. Anyone who knowingly and willfully falsifies, conceals, or misrepresents a material fact or knowingly and willfully makes a false, fictitious, or fraudulent statement or representation in any application for a retail dealer's license to the Department shall be guilty of a Class 1 misdemeanor. The Department may establish an application or renewal fee not to exceed $750 to be retained by the Department to be applied to the administrative and other costs of processing retail dealer's license applications, conducting background investigations, and issuing retail dealer's licenses. Any amount collected pursuant to this section in excess of such costs as of June 30 in even-numbered years shall be reported to the State Treasurer and deposited into the state treasury. C. Upon receipt of an application in proper form and payment of the required license fee, the Department shall, unless otherwise provided by this article, issue to the applicant a license, which shall permit the licensee to engage in business as a retail dealer at the place of business shown on the license. Each license, or a copy thereof, shall be prominently displayed in the place of business covered by the license. No license shall be transferable to any other person. Retail dealer's licenses issued pursuant to this section shall be valid for a period of five years from the date of issue unless revoked by the Department in the manner provided herein. The Department may at any time revoke the license issued to any retail dealer who is found guilty of violating or noncompliance with any of the provisions of this article, or any of the rules of the Department adopted and promulgated under authority of this chapter. D. The Department shall compile and maintain a current list of licensed retail dealers. The list shall be updated on a semiannual basis and published on the Department's website, available to any interested party. §58.1-1021.04:7. Certain records required of retail dealer; access to premises. A. Each retail dealer shall keep in each licensed place of business complete and accurate records for that place of business, including itemized invoices of (i) tobacco products held and purchased, (ii) all sales of tobacco products made, and (iii) any records required by the Department. All books, records, and other papers and documents required by this subsection shall be preserved, in a form prescribed by the Department, for a period of at least three years after the date of the documents or the date of the entries thereof appearing in the records, unless the Department authorizes, in writing, destruction or disposal of such documents at an earlier date. B. At any time during usual business hours, duly authorized agents or employees of the Department may enter any place of business of a retail dealer and inspect the premises, the records required to be kept under this section, and the tobacco products contained therein to determine whether all the provisions of this article are being complied with fully. Refusal to permit such inspection by a duly authorized agent or employee of the Department shall be grounds for revocation of the retail dealer's license. C. Each retail dealer who sells tobacco products to persons other than an ultimate consumer shall render with each sale itemized invoices showing the seller's name and address, the purchaser's name and address, the date of sale, and all prices. Such person shall preserve legible copies of all such invoices for three years after the date of sale. D. Any violation of §58.1-1021.04:6 or this section shall be grounds for revocation of the retail dealer's license. 2. That the provisions of this act shall become effective on July 1, 2014. 3. That the Department of Taxation shall promulgate guidelines pursuant to this act to include necessary information for the licensure of retail dealers by January 1, 2014. |