10101369D
SENATE BILL NO. 476
Offered January 13, 2010
Prefiled January 13, 2010
A BILL to amend and reenact §§ 58.1-1013 and 58.1-1017 of
the Code of Virginia, relating to penalties for unstamped cigarettes.
----------
Patron-- Watkins
----------
Referred to Committee on Finance
----------
Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-1013 and 58.1-1017 of the Code of
Virginia are amended and reenacted as follows:
§58.1-1013. Penalty for failing to affix stamps; subsequent
violations of article.
Any person who has been issued a permit to affix revenue
stamps by the Department and fails to properly affix the required stamps to any
cigarettes pursuant to the provisions of this chapter shall be required to pay
as part of the tax imposed hereunder, a civil penalty of $250, if the amount
of unstamped cigarettes does not exceed 100 packs, or a penalty of $500, if the
amount of unstamped cigarettes exceeds 100 packs, to be
assessed and collected by the Department as other taxes are collected, of (i) $2.50
per pack, up to $500, for the first violation by a legal entity within a 36-month period; (ii) $5.00
per pack, up to $1,000, for the second violation
by the legal entity within a
36-month period; and (iii) $10 per pack, up to $50,000, for the
third and any subsequent violation
by the legal entity within a 36-month period. Where willful
intent exists to defraud the Commonwealth of the tax levied under this chapter,
such person shall be required to pay a civil penalty
of $2,500 $25
per pack, up to $250,000. It shall be prima facie evidence
of intent to defraud when the number of such unstamped cigarettes exceeds
either 30 packs or 5% five percent of the cigarettes
in the place of business of such person, whichever is greater. Notwithstanding
the immediately preceding threshold limits, if the number of unstamped packs
exceeds 500 packs, it shall be prima facie evidence of intent to defraud.
Each pack of cigarettes
not having proper stamps affixed thereto as herein required shall be deemed a
separate offense for purposes of the monetary penalties imposed by this
section. Any cigarettes in the place of business of any
person required by the provisions of this chapter to stamp the same shall be
prima facie evidence that they are intended for sale.
Any person who has been
found guilty of violating any of the provisions of this article and who, after
being punished by fine, penalty, assessment or imprisonment, is guilty of a
second or subsequent violation of this chapter shall, upon being found guilty
of such second offense, have his or its permit revoked by the Department, and
no further permit shall be issued or granted to such person for a period of one
year from the date the permit has been revoked.
§58.1-1017. Sale, purchase, possession, etc., of cigarettes
for purpose of evading tax; penalties.
A. Any person, except as
otherwise provided by law, who sells, purchases, transports, receives or
possesses unstamped cigarettes shall be required to pay any tax owed pursuant
to this chapter. In addition, such person shall be required to pay a civil
penalty of (i) $2.50 per pack, up to
$500, for the first violation by a legal entity within a 36-month
period; (ii) $5 per pack, up to
$1,000, for the second violation by the legal entity within
a 36-month period; and (iii)
$10 per pack, up to $50,000, for the third and
any subsequent violation by the legal entity 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 chapter, such person shall be
required to pay a civil penalty of $25 per pack, up to $250,000.
B. It
shall be unlawful for any person, except as otherwise provided by law, to sell,
purchase, transport, receive or possess less than 3,000 packages of cigarettes
unless the same have been stamped in the manner required by law, for the
purpose of evading the payment of the taxes on such products. Any person
violating the provisions of this subsection shall be guilty of a Class 2
misdemeanor. In addition, the
Department may impose a penalty, to be assessed and collected by the Department
as other taxes are collected, not to exceed $500 per pack on any person for
violation of this subsection. Each pack of cigarettes
sold, purchased, transported or possessed shall be considered a separate
offense.
BC. It shall be unlawful for any
person, except as otherwise provided by law, to sell, purchase, transport,
receive or possess 3,000 or more packages of cigarettes unless the same have
been stamped in the manner required by law, for the purpose of evading the
payment of the taxes on such products. Any person violating the provisions of
this subsection shall be guilty of a Class 6 felony. In
addition, the Department may impose a penalty, to be assessed and collected by
the Department as other taxes are collected, not to exceed $2,500 per pack on
any person for violation of this subsection. Each
pack of cigarettes sold, purchased, transported, or
possessed shall be considered a separate offense.
CD. If a person who (i) has not
been issued a permit to affix revenue stamps by the Department, as provided in
§58.1-1011, or (ii) is not a retail dealer who has lawfully purchased
cigarettes from such permit holder has in his possession within the
Commonwealth more than 30 packages of unstamped cigarettes, such possession
shall be presumed to be for the purpose of evading the payment of the taxes due
thereon.
|
