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2006 SESSION

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SB 729 Roll-your-own tobacco; classified as cigarette, imposition of tax on selling or dealing thereof.

Introduced by: Charles R. Hawkins | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Tobacco taxes; roll-your-own tobacco. Makes roll-your-own tobacco subject to the cigarette excise tax instead of the tobacco products tax.  The cigarette tax on roll-your-own tobacco, however, would be imposed at the same rate and in the same manner as the tobacco products tax.  Distributors of roll-your-own tobacco would be considered cigarette stamping agents and would be required to prepare an invoice describing the manufacturer, brand, and quantity in ounces of roll-your-own tobacco included in each shipment to dealers located within the Commonwealth.  A copy of the invoice would be attached to the shipment and would be deemed to be the cigarette revenue stamp.  Accordingly, Nonparticipating Manufacturers (NPMs) would be required to include sales of roll-your-own tobacco when determining their required annual escrow deposit.  The bill is effective January 1, 2007.

SUMMARY AS PASSED SENATE:

Tobacco taxes; roll-your-own tobacco. Makes roll-your-own tobacco subject to the cigarette excise tax instead of the tobacco products tax.  The cigarette tax on roll-your-own tobacco, however, would be imposed at the same rate and in the same manner as the tobacco products tax.  Distributors of roll-your-own tobacco would be considered cigarette stamping agents and would be required to prepare a certificate describing the manufacturer, brand, and quantity of roll-your-own tobacco included in each shipment intended for resale within the Commonwealth or for sale to consumers within the Commonwealth.  A copy of the certification would be attached to the shipment and would be deemed to be the cigarette revenue stamp.  Accordingly, Nonparticipating Manufacturers (NPMs) would be required to include sales of roll-your-own tobacco when determining their required annual escrow deposit.  This bill would also require distributors that have paid the cigarette tax on roll-your-own tobacco to report the sales on the quarterly NPM report by quantity in ounces rather than by number of cigarettes.

SUMMARY AS INTRODUCED:

Tobacco taxes; roll-your-own tobacco. Classifies roll-your-own tobacco as a cigarette.  The bill would not change the current rate of tax on roll-your-own tobacco.