58.1-1017 - Sale, purchase, possession, etc., of cigarettes for purpose of evading tax; penalties. - Virginia Statutes

§ 58.1-1017. Sale, purchase, possession, etc., of cigarettes for purpose ofevading tax; penalties.

A. Any person, except as otherwise provided by law, who sells, purchases,transports, receives, or possesses unstamped cigarettes shall be required topay any tax owed pursuant to this chapter. In addition, such person shall berequired to pay a civil penalty of (i) $2.50 per pack, up to $500, for thefirst 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-monthperiod; and (iii) $10 per pack, up to $50,000, for the third and anysubsequent violation by the legal entity within a 36-month period, to beassessed and collected by the Department as other taxes are collected. Inaddition, 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.

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 ofcigarettes 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. Anyperson violating the provisions of this subsection shall be guilty of a Class2 misdemeanor.

C. 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 ofcigarettes 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. Anyperson violating the provisions of this subsection shall be guilty of a Class6 felony.

D. If a person who (i) has not been issued a permit to affix revenue stampsby the Department, as provided in § 58.1-1011, or (ii) is not a retail dealerwho has lawfully purchased cigarettes from such permit holder has in hispossession within the Commonwealth more than 30 packages of unstampedcigarettes, such possession shall be presumed to be for the purpose ofevading the payment of the taxes due thereon. No civil penalty shall beimposed under this section for any unstamped cigarettes if a civil penaltyunder § 58.1-1013 has been paid for such unstamped cigarettes.

(Code 1950, § 58-757.17; 1960, c. 392, § 17; 1984, c. 675; 1992, c. 763;2004, cc. 883, 996; 2005, c. 28; 2006, c. 409; 2010, cc. 35, 471.)