Code of Virginia § 58.1-1021.02 - (Effective until January 1, 2006) Tax on tobacco products

58.1-1021.02. (Effective until January 1, 2006) Tax on tobacco products.

A. In addition to all other taxes now imposed by law, there is hereby imposeda tax on every wholesale dealer within the Commonwealth selling any tobaccoproduct to a retail dealer located in the Commonwealth or selling any tobaccoproduct to institutional, commercial or industrial users located in theCommonwealth. For purposes of such tax, chain store distribution centers orhouses that distribute any tobacco product to their stores for sale at retailshall be deemed to be a wholesale dealer selling to a retail dealer.

The tax shall be imposed at a rate of 10 percent of the sales price chargedby the wholesale dealer for each such package of tobacco product sold to aretail dealer or institutional, commercial or industrial user. In any casewhere a chain store distribution center or house distributes any tobaccoproduct to its stores, the tax shall be imposed on the purchase price paid bythe chain store distribution center or house for each such package of tobaccoproduct so distributed.

B. In addition to all other taxes now imposed by law, there is hereby imposeda tax on every retail dealer within the Commonwealth purchasing any tobaccoproduct from a wholesale dealer located outside the Commonwealth.

The tax shall be imposed at a rate of 10 percent of the purchase price paidby the retail dealer for each such package of tobacco product purchased froma wholesale dealer located outside the Commonwealth.

(2004, Sp. Sess. I, c. 3.)

58.1-1021.02. Tax on tobacco products.

A. In addition to all other taxes now imposed by law, there is hereby imposeda tax upon the privilege of selling or dealing in tobacco products in theCommonwealth by any person engaged in business as a distributor thereof, atthe rate of 10 percent of the manufacturer's sales price of such tobaccoproducts. Such tax shall be imposed at the time the distributor (i) brings orcauses to be brought into the Commonwealth from outside the Commonwealthtobacco products for sale; (ii) makes, manufactures, or fabricates tobaccoproducts in the Commonwealth for sale in the Commonwealth; or (iii) ships ortransports tobacco products to retailers in the Commonwealth to be sold bythose retailers. It is the intent and purpose of this article that thedistributor who first possesses the tobacco product subject to this tax inthe Commonwealth shall be the distributor liable for the tax. It is furtherthe intent and purpose of this article to impose the tax once, and only onceon all tobacco products for sale in the Commonwealth.

B. No tax shall be imposed pursuant to this section upon tobacco products notwithin the taxing power of the Commonwealth under the Commerce Clause of theUnited States Constitution.

(2004, Sp. Sess. I, c. 3; 2005, c. 71.)