Study of Local Cigarette Tax Enforcement Policies

2012 House Bill 2038 and Senate Bill 1085 (Chapters 366 and 293) require the Tax Commissioner to convene a working group to review localities' current policies on:

1. Appeals of penalties related to the cigarette tax assessed on wholesalers and retailers
2. The desirability of having a single stamp for state and local taxes;
3. Methods of determining the validity of partially visible cigarette tax stamps; and
4. Other related issues.

The working group consists of representatives of the Virginia Wholesalers and Distributors Association, Virginia Retail Merchants Association, the Retail Alliance, the Virginia Petroleum, Convenience and Grocery Association, the Northern Virginia Cigarette Tax Board, the Virginia Municipal League, those counties that levy a local cigarette tax, and other individuals as deemed necessary.

The working group has been asked to submit its report and recommendations to the chairmen of the Senate and House Committees on Finance by December 1, 2011.

Final Report

The following is the finalized version of the "Study on Local Cigarette Tax Enforcement Policies." The report was distributed to interested parties on November 22, 2011 and will be posted on the Reports page on the Virginia General Assembly's website.  The Department would like to thank everyone who assisted in the development of this report.

Final Cigarette Study Report (PDF  1.7 MB)

Draft Report

The following is the initial draft of the "Study on Local Cigarette Tax Enforcement Policies."  The draft report has been distributed to interested parties and any comments should be submitted to andrea.muse@tax.virginia.gov by close of business, Wednesday, October 19, 2011.

Draft Cigarette Study Report  (PDF 914 KB)

Legislative Documents:

HB 2038      Text      PDF      Fiscal Impact Statement
SB 1085      Text      PDF      Fiscal Impact Statement
“Use of Tax Stamps as Evidence of Payment of Local Cigarette Taxes,” H. Doc. 5 (2006)

Study Documents: 

• Workplan (Word 35 KB)
• First Meeting Notice (PDF 11 KB)
• First Meeting Agenda (PDF 14.8 KB)
• Potential Issues for Review by the Working Group (PDF 16 KB)
• Second Meeting Notice (PDF 11 KB)
• Second Meeting Agenda  (PDF 46 KB)
• Local Cigarette Tax Matrix (Draft 10/5/11)   (PDF 447 KB)
• Stamping Breakout Group Meeting Notice  (PDF 81 KB)
• Appeals and Penalties Breakout Group Meeting Notice (PDF 81 KB)
• Stamping Breakout Group Meeting Notes  (PDF 86 KB)
• Appeals and Penalties Breakout Group Meeting Notes  (PDF 75 KB)
• Commonwealth of Virginia Appeals Process Bullet Points  (PDF 50 KB)
• Northern Virginia Cigarette Tax Board Appeals Process Bullet Points  (PDF 60 KB)
• Northern Virginia Cigarette Tax Board Budget Information (Sent by Deborah Cannon, NVCTB Administrator)(8/11/11)  (PDF 82 KB)
• VWDA Suggested Local Government Best Management Practices (Sent by The Smith Group) (8/15/11)          (PDF 6 KB)
• Other States’ Civil and Criminal Cigarette Tax Penalties Matrix (Draft 10/5/11)  (PDF 84 KB)

 Potential Issues Submitted by Working Group Members

• Smith Group (5/23/11) - Security       (PDF 133 KB) 
• Smith Group (7/11/11) - Stamp Selection   (PDF 25 KB)

Last Updated 3/7/2013 14:36