HomeMy Public PortalAbout2005_06_28_O009
The Town of
Leesburg,
Virginia
PRESENTED June 28. 2005
ORDINANCE NO. 2005-0-9
ADOPTED
June 28. 2005
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF
CHAPTER 17 (TAXATIONAND LICENSES) BY ADDING A DEFINITION
FOR WHOLESALE DEALERS; CHANGING CERTAIN REQUlREMENTS
FOR RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO
POWERS OF THE NORTHERN VIRGINIA CIGARETTE BOARD; AND
MAKING CERTAIN OTHER CHANGES REQUESTED BY THE
NORTHERN VIRGINIA CIGARETTE T AX BOARD
WHEREAS, the Northern Virginia Cigarette Tax Board has recommended certain changes to
Article VII (Cigarette Tax) ofChapter 17 (Taxation and Licenses) ofthe Town Code; THEREFORE
ORDAINED, by the Council of the Town ofLeesburg in Virginia as foIlows:
SECTION I. Article VII, Chapter 170fthe Town Code is herebyamended as foIlows:
Sec. 17-146. Definitions.
For the purpose of this Article the foIlowing words and phrases sftall have the meanings
respectively ascribed to them by this Section, except in those instances where the context clearly indicates
a different meaning:
Board or NVCTB sftall mean the TOWR ofLeesb\:lrg; an-)' &geRe)' or lN:ttherit)' of the Tov/ß of
Leesbürg; for the admiRistratioR and enfereemeRt of tl1e eigarette tax ordiRanee; or aR)' agøRey or
a\:lthElrit)' for the administratioR aRd enforeemeRt ofthe eigarette tax ordiRanee to whieh the TO\vn of
Leesbürg, p\:lrsaant tEl the authorities eoBtaiRed iR SeetioR 15.1 210fthe Code ofVirgiRia of 1950, as
amendød, delegates s\:leh admiRistrati'le aAd enforeement pars\:lant to the pro','isions of Seetion 58.1 3832
ofth6 Code ofVirginia of 195Q, as ameAded. means the Northern Virginia Cigarette Tax Board.
Carton shaIl mean means any container, regardless of material used in its construction, in which
ten packages of 20 packages of cigarettes are placed.
Cigarette shaIl mean means and inel\:lde includes any raIl of any size or shape of smoking,
whether filtered or unfiltered, with or without a mouthpiece, made whoIly or partly of cut, shredded or
crimped tobacco or other plant or substitute for tobacco, whether the same is flavored, adulterated or
mixed with another ingredient, if the wrapper or cover is made of any material other than leaf tobacco or
homogenized leaftobacco, regardless ofwhether the raIl is labeled or sold as a cigarette or by any other
name.
Cigarette Machine Operator means any individual. partnership or corporation engaged in the sale
of cigarettes from ven ding machines.
- 2 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE T AX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUlREMENTS FOR
RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
Dealer shaIl mean means and iReluåe includes every manufacturer's representative, self
wholesaler, retailer, vending cigarette machine operator, public warehouseman or other person who shall
seIl, receive, store, possess, distribute or transport cigarettes within or into the town.
Package shaIl meaR aRê iRelude means and includes any container, regardless of the material
used in its construction~ in which separate cigarettes are placed without such cigarettes being placed into
any container within the package. Packages are those containers of cigarettes from which they are
consumed by their ultimate user. Ordinarily a package contains ~ twenty cigarettes; however, "package"
includes those containers in which fewer or more than ~ twenty cigarettes are placed.
Pers on shaIl mean and inelude means and includes any individual, firm, unincorporated
association, company, corporation, joint stock company, group agency, syndicate, trust or trustee,
receiver, fiduciary, partnership and conservator. The word "person" as applied to a partnership,
unincorporated association or other joint venture means the partners or members thereof, and as applied to
a corporation shaIl iRclude includes all the officers and directors thereof.
Place of business shaIl mean and inelude means and includes any place where cigarettes are sold,
placed, stored, offered for sale or displayed for sale or where cigarettes are brought or kept for the
purpose of sale, consumption or distribution, including vending machines, by a dealer within the town.
Registered agent shaIl meaR aRê iRelude means and includes every dealer and other person who
shaIl be required to report and coIlect the tax on cigarettes under the provisions of this Article.
Retail dealer shaIl meaR aRd iRelude means and includes every person who, in the usual course of
business, purchases or receives cigarettes from any source whatsoever for the purpose of sale within the
town to the ultimate consumer; or any person who, in the usual course of business, owns, leases, or
otherwise operates within his own place of business, one or more cigarette vending machines for the
purposes of sale with in the town of cigarettes to the ultimate consumer; or any person who in any manner,
buys, seIls, stores, transfers, or deals in cigarettes for the purpose of sale within the town to the ultimate
consumer, who is not licensed as a wholesaler, or vending machine operator.
Sale or seil SR all maan and iRelude means and includes every act or transaction, regardless of the
method or means employed, including barter, exchange, or the use ofvending machines or other
mechanical devices or a criminal or tortious act whereby either ownership or possession, or both, of any
cigarettes shaIl be transferred within the town from a dealer as herein defined to any other person for a
consideration.
Stamp shaIl maan means a small gummed piece of paper or deca I used to evidence provision for
payment of the tax as authorized by the 8eaffi Northern Virginia Cigarette Tax Board. required to be
affixed to every package of cigarettes sold. distribute. or used within the town.
Store or storage shaIl mean and inelude means and includes the keep ing or retention of cigarettes
in this town for any purpose except sale in the regular course of business.
- 3 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RET AlL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
Town shaIl mean means Town ofLeesburg, Virginia.
Use shaIl meaR and inelude means and includes the exercise of any right or power over any
cigarettes or packages or cigarettes incident to the ownership or possession ofthose cigarettes or packages
of cigarettes including any transaction where possession is given or received or otherwise transferred,
other than a sale.
User shaIl m6an means any person who exercises any right or power over any cigarettes or
packages of cigarettes subject to the provisions of this Article incident to the ownership or possession of
those cigarettes or packages of cigarettes or any transaction where possession is given or received or
otherwise transferred, other than a sale.
Wholesale Dealers means any individual. partnership or corporation engaged in the sale of
packages of cigarettes for resale into or within the town.
Sec. 17-147. Levy and rate.
In addition to all other taxes of every kind now or hereinafter imposed by law, there is hereby
levied and imposed by the town upon every pers on who seIls or uses cigarettes within the town from aRd
after the effeetive date of this artiele an excise tax equivalent to at a rate of fifty cents ~ for each
package containing ~ twenty cigarettes and 25 mills two and one-half cents for each cigarette contained
in packages of fewer or more than twenty ~ cigarettes sold or used within the town. The tax shaIl be paid
and coIlected in the manner and at the time hereinafter prescribed; provided, that the tax payable for each
cigarette or cigarette package sold or used within the town shaIl be paid but once. The tax hereby le','ied
shaIl Rot apply to free distribution of sample eigarettes iR paekages eontaiRiRg fiye or fewef eigarettes.
Sec. 17-148. Delegation of administration.
( a) The town manager is authorized to enter into a written contract on behalf of the Town of Leesburg
delegating the administrative and enforcement authority under this article to the Northern Virginia
Cigarette Tax Board or its successors or any other agency or authority which qualifies pursuant to the
provisions of section 15.1-21 of the Code ofVirginia of 1950, as amended.
(b) The agency or authority so delegated is authorized to promulgate such rules and regulations, as it
deems appropriate, governing:
(1) The display of cigarette stamps in vending machines;
(2) The placement oftax liens against property oftaxpayers hereunder;
(3) The extending of varying discount rates;
-4-
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE T AX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINIT A TION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
(4) The establishing of different classes oftaxpayers or those required to coIlect and remit the tax;
(5) The requirements concerning keep ing and production of records;
(6) The administrative and jeopardy assessment to tax where reasonably justified;
(7) The required notice to authorities of sale oftaxpayer's business;
(8) The audit requirements and authority;
(9) The criteria for authority of distributors and others to possess untaxed cigarettes; and
(lO) Any and all powers granted by the provisions ofSection 58.1-382(9) of the Code ofVirginia of
1950, as amended, or necessarily imp lied therefrom.
(c) Any agency or authority so delegated by the town manager on behalf of the Town of Leesburg
pursuant to the provisions ofparagraph (a) of this section immediately heretnabove, is authorized to:
(I) Issue a common revenue stamp;
(2) Employ legal counsel;
(3) Bring appropriate court action in its own name where necessary to enforce payment of the cigarette
taxes or penalties;
(4) Provide cigarette tax agents and the necessary enforcement supplies and equipment needed to
effectively enforce the cigarette tax ordinance.
Sec. 17-149. Methods ofcollection.
(a) The tax imposed by this Article shaIl be evidenced by the use of a fax stamp and shaIl be paid by
each dealer or other pers on liable for the tax under areporting method deemed by the Board to carry out
the provisions of this Article. The stamps shaIl be affixed in such a manner that their removal will require
continued application of water or steam. Each dealer or other pers on liable for the tax is hereby required,
and it shaIl be his duty, to coIlect aÐd pay the tax and report separate ly for all packages of ~ cigarettes on
forms prescribed for this purpose by the Board:
(1) The quantity ofNVCTB Beafà-stamped cigarettes sold or delivered to:
a. Each registered agent appointed by the Board for which no tax was coIlected;
b. Each manufacturer's representative; and
- 5 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RET AlL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
c. Each separate person and place of business vlÏthiR the tØWR during the preceding calendar or
fiscal month; and
(2) The quantity ofßeæ:à NVCTB stamps on hand, both affixed and unaffixed on the first day and the
last day of the preceding calendar or fiscal month and the quantity ofßeæ:à NVCTB stamps or
8eaFd NVCTB stamped cigarettes received during the preceding calendar or fiscal month; and
(3) The quantity of cigarettes on hand on which the 8eaFd NVTCB stamp had not been affixed on the
first and last day of the preceding calendar or fiscal month and the quantity of cigarettes received
during the preceding calendar or fiscal month to which the ßeæ:à NVCTB stamp had not been
affixed;and
(4) Such further information as the administrator for the Board may require for the proper
administration and enforcement of this Article for the determination of the exact number of
cigarettes in the posse ss ion of each dealer or user.
(b) Each dealer or other person liable for the tax shaIl file such reports with the Board and pay the tax
due to the Board betweeR the first and twentieth day after the elose ef eaeh ealeRêar or fiseal møRth prior
to the due date, and shaIl furnish a-eepy copies of eaeR illlcigarette tax reports submitted to the Virginia
Department of Taxation for the previeus moBth.
(c) When, upon examination and audit of any invoices, records, books, cancelled checks or other
memoranda touching on the purchase, sale, receipt, storage or possession of tobacco products taxed
herein, any dealer or other person liable for the tax is unable to furnish evidence to the Board of sufficient
tax payments and stamp purchases to cover cigarettes which were sold, used, stored, received, purchased
or possessed by him, the prima facie presumption shaIl arise that such cigarettes were received, sold,
used, stored, purchased or possessed by him without the proper tax having been paid. The Board shaIl,
from the results of such examination and audit, based upon such direct or indirect information available,
assess the tax due~ aRê uRpaid and impose a penalty of ten per cent and may impose interest of ten pereent
three-quarters per aßffiIfB cent per month of the gross tax due.
(d) When any dealer or other pers on liable for the tax files a false or fraudulent report or fails to file a
report or fails to perform any act or performs any act to evade payment of the tax, the Board shaIl
administratively assess the tax due an:à uRpaid and impose a penalty not to exceed ~ .fi.fix.-per cent of
the tax due and interest of teR pereent three-quarters per cent per month aßffiIfB of the gross tax due.
(e) The dealer or other person liable for the tax shaIl be notified by certified mail of such deficiency
and such tax, penalty and interest assessed shaIl be due and payable within ten days after notice of such
deficiency has been issued. Every dealer or other person liable for the tax shaIl examine each package of
cigarettes to ensure that the ßeæ:à NVCTB stamp has been affixed thereto prior to offering them for sale.
(f) Any dealer or other person liable for the tax who shaIl receive cigarettes not bearing the 8eaFd
NVCTB stamp shaIl, within one hour ofreceipt of such cigarettes, commence and with all reasonable
- 6 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINIT A TION FOR
WHOLESALE DEALERS; CHANGING CERT AlN REQUIREMENTS FOR
RET AIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
diligence continue to affix the Beaffi NVCTB stamp to each and every package of cigarettes until all
unstamped packages of cigarettes have been stamped and bef ore offering such cigarettes for sale. Any
dealer or other person liable for the tax who has notified the Board that he is engaged in interstate or
intrastate business shaIl be permitted to set aside such part of his stock as may be legally kept for the
conduct of such interstate or intrastate business (that is, cigarettes held for sale outside the jurisdiction of
the Board) without affixing the stamps required by this Article. Any such interstate or intrastate stock
shaIl be kept entirely separate and apart from the Beaffi NVCTB-stamped stock, in such a manner as to
prevent the commingling of the interstate or intrastate stock with the Beaffi NVCTB stock. Any dealer or
other person liable for the tax found to have had untaxed cigarettes which have been lost, whether by
negligence, theft, or any other unaccountable loss, shaIl be liable for and shaIl pay the tax due thereon.
(g) It shaIl also be the duty of each dealer or other pers on liable for the tax and he is hereBY required to
maintain and keep for a period of three years, not including the current calendar year, records of all of
cigarettes received, sold, stored, possessed, transferred or handled by him in any manner, whatsoever,
whether the same were stamped or unstamped, to make all such records available for audit, inspection and
examination and to make availaàle at all reasonable times as weIl as the means, facilities and opportunity
for making such audit, inspection or examination upon demand of the Board.
Sec. 17-150. Registered agents.
(a) Any dealer or other pers on liable for the tax who shaIl seIl, use, store, possess, distribute or
transport cigarettes within or into the town shaIl first make application to the Board to qualify as a
registered agent. Such application blank, which shaIl be supplied upon request, shaIl require such
information relative to the nature of the business engaged in by said applicant~ as the Board deems
necessary for the administration and enforcement of this Article. s\:t6h applicant shaIl provide a surety
bond to the Board of 150 percent ofhis average monthly tax liability or $5Q,OQO.00, whiehever is less,
with a surety company authorized to do business in the state Commonwealth ofVirginia. Such bond sh all
be so written that, on time ly payment of the premium thereon, it shaIl continue in force from year-to-year.
Any applicant whose place of business is outside the town shaIl automaticaIly, by filing his application,
submit himself to the Board's legal jurisdiction and appoint the Administrator for the Board as his agent
for any service of lawful process.
Upon receipt of the properly completed required application forms, and the required surety bond
executed, the Board shaIl determine whether the said applicant qualifies to be a registered agent. The
Board will issue to said qualified applicant a yearly registered agent permit to qualify him as aregistered
agem to purchase, seIl, use, store, possess, distribute or transport within or into the town, Beaffi NVCTB-
stamped cigarettes.
(b) Registered agents shaIl agree to the reporting and payment requirements placed upon him by this
Article and the rules and regulations as from time to time may be promulgated by the Board. lÐ-J:HS
repertiRg and payment of the tax, the registereê agent shaIl Be alloweê a diseouBt, as the Boarê may
determiRe Rot to eJ(eeed .0175 eeRts per eartoR sold er êelh'ereê BY him. When any registered agent's
monthly report and payment of the tax is not received within the dates prescribed, the Board sftall
- 7 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RET AIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
disaIlow any êiseouRt taken up to a maximum amauRt af $5Q9.9Q, anê shaIl impose a late reporting
penalty of ten per cent of the gross tax due or ~ ten dollars whichever is greater, but in no event
more than $50Q.QO $1.000. The Board may also may require such registered agent to provide proofthat he
has complied with all applicable state laws ofthe Commonwealth ofVirginia to legally conduct such
business and to file financial statements showing all as sets and liabilities. The Board may revoke or
suspend any registered agent's permit if süeh bORd, as ree¡l:lireê, is iæpaireê for any reaSOR due to failure
to file tax reports in a timely manner. non-payment oftaxes due. or if the cigarette tax surety bond should
become impaired for any reason.
(c) <,\fter adoption afthis artiele, êealers ar other persons liable for that tax WRO shaIl seIl, use, store,
possess, distribüte or transport tobaeeo proêuets 'oVithiR or into the tO'Nß shaIl be allawed 30 åays to
beeome e¡ualifieê as a registereê ageRt. All money coIlected. as cigarette taxes under this ordinance shaIl
be deemed to be held in trust by the dealer coIlecting the same until remitted to the Board.
@ Registered agents must account for all NVCTB authorized tax stamps purchased. Periodic audits
may be conducted to determine any unaccounted variance between the number of stamps purchased and
the number of stamps reported. and an assessment will be made for all unaccounted for stamps. Any
assessment of registered agents located outside the iurisdictions of the Board will be based upon the
average sales of packages of cigarettes by iurisdiction during the audit period. For registered agents
located within the iurisdictions of the Board. any assessment will be based upon the tax rate of the
iurisdiction in which they are located. In addition. there will be a penalty for non-reporting of ten per cent
of the gross tax due.
Sec. 17-151. Netiee efinteBtieB by retail dealeFS. Reauirements for retail dealers.
(a) Retail dealers who shall seIl, offer for sale, store, possess, distribute, purchase, receive or transport
cigarettes iR or iRtO for the pUlJ>ose of sale within the town....shaIl Rotify the Board, iR vli'itiRg, of the
supplier of sueh eigarettes anê the RafRe aRê adàress and the '1irgiRia R-et:ail Sales and Use Certifieate of
Regist-ration Rumber for eooft separate plaee of busiRess. PessessioÐ of a Virginia State R-etail Sales aRd
Use Tax Certifieate and a YirgiRia State Retail Tobaeea LieeRse aRd, where applieable, a retail büsiRess
lieeRse issueê by the tOWR far eaeh separate plaee of busiRess by a retail dealer shaIl be eOBsidered
suffieieRt ...,<,ritten RotifieatioR to the Baarê.
(b) No retail dealer, as åefiReê kereiR, who shall ka'/e eamplied witl1 the provisians ofthe artiele and
who püreRases ORly tal. paiê Boarê stamp ed eigarettes {er eaeh separate plooe of busiR0SS skaIl be
required to qüalify as a registereê ageRt. purchase cigarettes only from registered agents giving or
supplying the business trade name and business address of the location where the cigarettes will be placed
for sale to the public. Cigarettes purchased for personal use cannot be brought into a business for resale.
Only properly registered and licensed retail stores may seIl cigarettes to the public. To be properly
registered and licensed. a retail store must first have avalid Virginia state sales and use tax certificate and
valid retail business license. Cigarettes must be purchased and stored separately for each business
location. All copies of cigarette purchase invoices / receipts must be retained by the retailer for aperiod
ofthree years and shaIl be made available to Agents of the NVCTB upon request for use in conducting
- 8 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RET AlL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
audits and investigations. All copies of cigarette purchase invoices / receipts must be stored at the
business retaillocation for a period of one year from date of purchase. Failure to provide cigarette
invoices / receipts may resuit in confiscation of cigarettes until receipts can be reviewed by the Board to
verify the proper tax has been paid. It is the responsibility of each retaillocation to insure that all
cigarettes placed for sale or stored at the location be properly taxed and stamped. Cigarettes found
without the NVCTB stamp or the proper iurisdictional tax paid will be seized by the Agents of the Board.
(b) Retail dealers must make their place of business available for inspection by Tobacco Revenue
Agents to insure that all cigarettes are properly tax-stamped and all cigarette taxes are properly paid.
Sec. 17-152. Sale af eigaFette iR veRdiRg maehiRes; eaRtFilbaRd. PresumDtion of iIIel!alitv; seizure of
contra band l!oods. sealinl! / seizinl! of machines.
(a) If any cigarette machine operator or other person liable for the tax imposed by this Article is
found to possess any cigarettes without the iurisdictional tax paid or the proper tax stamp affixed, there
sh all be a rebuttable presumption that any such operator or other person shaIl be in possession of untaxed
cigarettes in violation of this section.
GD If [a]ny cigarettes are placed in any eoiR operated vending machines with in the town. then there
sh all be presumed a rebuttable presumption that such cigarettes were placed in that machine for sale
with in the town. If [a ]ny vending machine located within the town eoRtainiRg contains cigarettes upon
which the NVCTB tax stamp has not been affixed or on which the iurisdictional tax has not been paid or
containing cigarettes placed so as to not aIlow visual inspection of the Beaffi NVCTB tax stamp through
the viewing area as provided for the vending machine manufacturer. then there shall be a rebuttable
presumption that the machine contains untaxed cigarettes in violation of this article.
(b f) Any cigarettes, eoiR operated vending machines, eøuRterfeÏt cigarette tax stamps, or other
property found in violation of this Article shaIl be declared contraband goods and may be seized by the
Board. In addition to any tax due, the dealer or other person liable for the tax possessing such untaxed
cigarettes or tax stamps shaIl be subject to civil and criminal penalties here in provided.
(e g) In lieu of seizure, the Board may seal such vending machines to prevent continued illegal sale or
removal of such cigarettes. The removal of such seal from a vending machine by any unauthorized person
shaIl be a violation of this article. Nothing in this article shaIl prevent the seizure of any vending machine
at any time after it is sealed.
(è-~) All cigarette vending machines shaIl be plainly marked with the name, address and telephone
number of the owner of said machine.
Sec. 17-153. IIIegal acts.
WItshall be unlawful and a violation of the Article for any dealer or other pers on liable for the tax:
- 9 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANG ING CERTAIN REQUIREMENTS FOR
RET AlL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
(1) To perform any act or fail to perform any act for the purpose of evading the payment of
any tax imposed by this Article or of any part thereof, or to fail or refuse to perform any of the
duties imposed under him under the provisions of the this Article or to fail or refuse to obey any
lawful order which may be issued under this Article; or
(2) To falsely or fraudulently make, or cause to be made, any invoices or reports, or to
falsely or fraudulently forge, alter or counterfeit any stamp, or to procure or cause to be made,
forged, altered or counterfeited any such stamp, or knowingly and willfuIly to alter, publish, pass
or tender as true any false, altered, forged or counterfeited stamp or stamps; or
(3) To seIl, offer for sale, or aüthorize or approve the sale distribute of any cigarettes upon
which the ßem:à NVCTB tax stamp has not been affixed or upon which the iurisdictional tax has
not been paid; or
(4) Topossess, store, use, authorize or approve the possession, storage or use of any
cigarettes in "luantities af more thaR 60 packages upon which the ßem:à NVCTB tax stamp has
not been affixed or upon which the iurisdictional tax has not been paid; or
(5) To transport, authorize or approve the transportation of any eigarettes cigarette packages
in quantities of more than é() sixty packages into or within the town upon which the ßem:à
NVCTB tax stamp has not been affixed or upon which the iurisdictional tax has not been paid, if
they are:
a. Not accompanied by a receipt / bill of lading or other document indicating the true
name and address of the consignor or seller and the consignee or purchaser and the
brands and quantity of cigarettes transported; or
b. Accompanied by a receipt / bill of lading or other document which is false or
fraudulent in whole or part; or
c. Accompanied by a receipt / bill of lading or other document indicating:
I. A consignee or purchaser in another state or the District of Columbia who is not
authorized by the law of such other jurisdiction to receive or possess such tobacco
products on which the taxes imposed by such other jurisdiction have not been paid
unless the tax on the jurisdiction of destination has been paid and said cigarettes bear
the tax stamps of the jurisdiction; or
2. A consignee or purchaser in the Commonwealth ofVirginia but outside the
taxingjurisdiction who does not possess a Virginia Sales and Use Tax Certificate, ft
VirgiRia retail tøbaeea lieeRse and, where applicable, or a busiRess lieense any
licenses issued by a state or local iurisdiction of destination and a retail tabaeeø
lieeftse issHed by the loeal jurisdieti0R of destinatioR; or
- 10-
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
(6) To reuse or refiIl with cigarettes any package from which cigarettes have been removed, for
which the tax imposed has been theretofore paid; or
(7) To remove from any package any stamp with intent to use or cause the same to be used
after same has already been used or to buy, seIl, or offer for sale or give away any used, removed,
altered or restored stamps to any person, or to reuse any stamp which had therefore been used for
evidence of the payment of any tax prescribed by this Article or to seIl, or offer to seIl, any stamp
provided for herein~
Γ To seIl. offer for sale or distribute any loose or single cigarettes: or
(9) To perform any act that violates the resolutions promulgated by the Board.
oll It shaIl be unlawful and a violation ofthe Article for any person or individual to transport.
possess. store. use. authorize or approve the possession. storage or use of any cigarettes in quantities of
more than sixty packages upon which the NVCTB tax stamp has not been affixed or upon which the
iurisdictional tax has not been paid.
Sec. 17-154. Powers of the Northern Vireinia Ciearette Tax Board.
The Board may delegate any of its powers to its Administrator or employees and mayadopt
regulations regarding the administration and enforcement of the provisions of this Article.
(ill The Board shaIl be granted the foIlowing powers:
ill To assess. coIlect and disburse the cigarette tax for each participating iurisdiction:
ill To audit sales of cigarettes for each participating iurisdiction:
ill To provide information to Commonwealth's attorneys or town attorney for each
participating iurisdiction:
ill To designate an Administrator:
ill To manage the Northern Virginia Cigarette Tax Funds:
ill To retain a certified public accountant to audit its books:
ru To designate a depository bank or banks:
Γ To contract with member iurisdiction for administrative services:
- 11 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERT AlN REQUIREMENTS FOR
RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
Œ) To hold and convey real and personal property:
Qill To enter into contracts:
ol) To hire. supervise and discharge its own employees:
(l2) To sue and be sued in its own name:
Ql) To prescribe the design of a stamp(s) and to issue and seIl said stamps to authorized
dealers:
a±) To establish different classes oftaxpayers:
@ To promulgate resolutions for the assessment and coIlection of cigarette taxes and the
enforcement of this ordinance: and
(lQ) To conduct inspections of any place of business in order to enforce the provisions of this
ordinance and all resolutions of the Board.
üù The Board may employ legal counsel. bring appropriate court action in its own name to enforce
payment of the cigarette tax or penalties owed and file tax liens against property oftaxpayers hereunder.
W The Board is authorized to enter into an agreement with the Virginia Department of Taxation
under which a registered agent with the NVCTB who is also. qualified to purchase Virginia Revenue
Stamps. may qualify to purchase Dual Virginia - NVCTB stamps from the Virginia Department of
Taxation. Authority to purchase dual Virginia - NVCTB stamps is granted solely by the Board and may
be revoked or suspended for violations of this ordinance or resolutions adopted by the Board.
@ The Board may appoint certain employees as Tobacco Revenue Agents. who shall be required to
carry proper identification while performing their duties. Tobacco Revenue Agents are further authorized
to conduct inspections of any place of business and shaIl have the power to seize or seal any vending
machines. seize and cigarettes. counterfeit stamps or other property found in violation of this Article and
shaIl have the power of arrest upon reasonable and probable cause that a violation of this Article has been
committed. The Board is authorized to provide its tobacco revenue agents with (1) firearms for their
protection; (2) emergencv equipped vehicles while on duty: and (3) other equipment deemed necessary
and proper.
W The Board may exchange information relative to the sale. use. transportation or shipment of
cigarettes with an official of any other iurisdiction entrusted with the enforcement of the cigarette tax laws
of said other iurisdiction.
Sec. 17-t-S4 155. Jeopardy assessment.
- 12 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE T AX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
If the Board determines that the coIlection of any tax or any amount of tax required to be collected and
paid under this article will be jeopardized by delay, the Board shaIl make an assessment of the tax or
amount of tax required to be coIlected and shaIl mail or issue a notice of such assessment to the taxpayer
together with a demand for immediate payment of the tax or of the deficiency in tax declared to be in
jeopardy including penalties and interest. In the case of a current period, for which the tax is in jeopardy,
the Board may declare the taxabie period of the taxpayer immediately terminated and shaIl cause notice of
such finding and declaration to be mailed or issued to the taxpayer together with a demand for immediate
payment of the tax based on the period declared terminated and such tax shaIl be immediately due and
payable, wh ether or not the terms otherwise allowed by this article for filing a return and paying the tax
has expired.
Sec. 17~ 156. Erroneous assessment; notices and hearings in the event of sealing ofvending
machines or seizure of contraband property.
(a) Any person assessed by the Board with a cigarette tax, penalties and interest or any person whose
cigarettes, vending machines and other property have been sealed or seized under processes of this article
who has been aggrieved by such assessment, seizure, or sealing may file a request for a hearing before the
Board for a correction of such assessment and the return of such property seized or sealed.
(b) Where holders of property interest in cigarettes, vending machines or other property are known at
time of seizure or sealing, notice of seizure or sealing shaIl be sent to them by certified mail within ~
twenty-four hours. Where such holders ofproperty interests are unknown at time of seizure or sealing, it
shaIl be sufficient notice to such unknown interest holders to post such notice to a door or waIl of the
room or building which contained such seized or sealed property. Any such notice of seizure or sealing
Si:leÀ shaIl include procedures for an administrative hearing for return of such property seized or sealed as
weIl as affirmative defenses set forth in this section which may be asserted.
(c) Such hearing shaIl be requested within ten days of the notice of such assessment, seizure, or sealing
and shall set forth the reasons why said; tax, penalties and interest, ami cigarettes, vending machines or
other property should be return ed or released. With in five days after receipt of such hearing request the
Beafd Administrator shaIl notify the petitioner by certified mail of a date and time for the informal
presentation of evidence at a hearing to be held within ~ fifteen days of the date notification is mailed.
Any such request for hearing sh all be denied if the assessed tax, penalties and interest has not been paid as
required or if the request is received more than ten days from first notice to the petitioner of such seizure
or sealing. Within five days after the hearing, the Beafd Administrator shaIl notify the petitioner, by
registered mail, whether his requests for a correction has been granted or refused.
(d) Appropriate re lief shaIl be given by the Beafd Administrator if he is convinced it is prave8 by the
preponderance of the evidence that the illegal sale ar use of sueh seizeê eigarettes or ye8ding maehiRe or
other praflerty '.vas Rot iBte8tio8al 08 the part of the petitioner, and that said seized cigarettes were in the
possession of a pers on other than the petitioner without the petitioner's consent at the time said cigarettes,
vending machines or other property were seized or sealed or that petitioner was authorized to possess
such untaxed cigarettes. If the Beafd Administrator is satisfied that the tax was erroneously assessed, it he
- 13 -
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINITATION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RET AlL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
shaIl refund the amount erroneously assessed together with any interest and penalties paid thereon and
shaIl return any cigarettes, vending machines or other property seized or sealed to the petitioner. Any
petitioner who is uHsatisfied dissatisfied with the written decision of the Board may within ;.G !b.i.m:: days
of the date of said such decision, appeal such decision to the appropriate Court in the jurisdiction where
the seizure or sealing occurred.
Sec. 17-tMt 157. Disposal ofseized property.
Any seized and confiscated cigarettes, vending machines or other property used in the furtherance of any
illegal evasion of the tax may be disposed of by sale or other method deemed appropriate by the Board
after any petitioner has exhausted all administrative appeal procedures. No credit from any sale of
cigarettes, vending machines, or other property seized shaIl be allowed toward any tax and penalties
assessed.
Sec. 17-~ 158. Extensions.
The Beaffi Administrator, upon a finding of good cause may grant an extension of time to file a tax report
upon written application thererore, uRtil the eRd af the eale8dar or fiseal mORth in wlIieh aRY tax report is
due hereuRder, or for a period not exceeding ;.G !b.i.m:: days. IR na ease shaIl a request for aR exteRsion of
time to file a tax rep art be gra8ted by the Baard '.vlIeR SU eh Fet:¡uest is Rot reeeh'ed '.vith tlIe dU6 date f{)r
filing SH eh tæ( report. Except as hereinafter provided. no interest or penalty shaIl be charged, assessed or
coIlected by reason of the granting of such an extension. Where sueh exte8sion is gran-ted beyond the eRd
of the ealendar or fiseal maRth iR vlhieh a tax report is due, hereuRder, imerest OR the tw( at a rate of teR
pereeRt per aRRum shaIl be ehargeà.
Sec. 17-~ 159. Penalty for violation of article.
Any persons violating any of the provisions of this Article shaIl be guilty of a GlaSS-I misdemeanor and,
upon conviction thereof, shaIl be punished by a fine ofnot more than $1,000.00 $2.500.00 or
imprisonment of not more than H twelve months or by both such fine and imprisonment. Such fine
and/or imprisonment shaIl not relieve any such person from the payment of any tax, penalty or interest
imposed by this article.
Sec. 17~ 160. Each violation a separate offense.
The sale of any quantity 6f-the use, possession, storage or transportation of more than é{) sixty packages
of cigarettes upon which the Beafd NVCTB stamp has not been affixed or the proper iurisdictional tax
has not been paid shaIl be and constitute a separate violation. Each continuing day ofviolation shaIl be
deemed to constitute a separate offense.
Sec. 17~ 161. Severability.
- 14-
AN ORDINANCE:
AMENDING TOWN CODE ARTICLE VII (CIGARETTE TAX) OF CHAPTER
17 (TAXATION AND LICENSES) BY ADDING A DEFINIT A TION FOR
WHOLESALE DEALERS; CHANGING CERTAIN REQUIREMENTS FOR
RETAIL DEALERS; BY ADDING A SECTION RELATIVE TO POWERS OF
THE NORTHERN VIRGINIA CIGARETTE BOARD; AND MAKING
CERTAIN OTHER CHANGES REQUESTED BY THE NORTHERN VIRGINIA
CIGARETTE T AX BOARD
If any section, phrase, or part of this Article should for any reason be held invalid by a court of competent
jurisdiction, such decision shaIl not affect the remainder of the Article, and every remaining section,
clause, phrase or part thereof shall continue in fuIl force and effect.
SECTION II. This ordinance shaIl be in effect upon passage.
PASSED this 28th day of June 2005.
~~~
. Umstattd, Mayor
Town of Leesburg
ATTEST:
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