58.1-1013 - Penalty for failing to affix stamps; subsequent violations of article. - Virginia Statutes

§ 58.1-1013. Penalty for failing to affix stamps; subsequent violations ofarticle.

Any person who has been issued a permit to affix revenue stamps by theDepartment and fails to properly affix the required stamps to any cigarettespursuant to the provisions of this chapter shall be required to pay as partof the tax imposed hereunder, a civil penalty, to be assessed and collectedby 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 legalentity within a 36-month period; and (iii) $10 per pack, up to $50,000, forthe third and any subsequent violation by the legal entity within a 36-monthperiod. Where willful intent exists to defraud the Commonwealth of the taxlevied under this chapter, such person shall be required to pay a civilpenalty of $25 per pack, up to $250,000. It shall be prima facie evidence ofintent to defraud when the number of such unstamped cigarettes exceeds either30 packs or five percent of the cigarettes in the place of business of suchperson, whichever is greater. Notwithstanding the immediately precedingthreshold limits, if the number of unstamped packs exceeds 500 packs, itshall be prima facie evidence of intent to defraud.

Any cigarettes in the place of business of any person required by theprovisions of this chapter to stamp the same shall be prima facie evidencethat they are intended for sale.

No civil penalty shall be imposed under this section for any unstampedcigarettes if a civil penalty under § 58.1-1017 has been paid for suchunstamped cigarettes.

(Code 1950, § 58-757.12; 1960, c. 392, § 12; 1984, c. 675; 2004, c. 1029;2006, c. 409; 2010, cc. 35, 471.)