HB889: Cigarette tax, local; authorizes any county to impose.

HOUSE BILL NO. 889
Offered January 13, 2010
Prefiled January 13, 2010
A BILL to amend and reenact § 58.1-3830 of the Code of Virginia and to repeal § 58.1-3831 of the Code of Virginia, relating to local cigarette taxes.
Patron-- Barlow

Committee Referral Pending

Be it enacted by the General Assembly of Virginia:

1.  That § 58.1-3830 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-3830. Local cigarette taxes authorized; use of dual die or stamp to evidence payment of both county, city, or town and state tax on cigarettes.

A. No provision of Chapter 10 (§ 58.1-1000 et seq.) of this title shall be construed to deprive counties, cities and towns of the right to levy taxes upon the sale or use of cigarettes, provided such county, city or town had such power prior to January 1, 1977. The governing body of any county, city or town which may impose a tax on the sale or use of cigarettes. The rate of the tax in any county shall not exceed $0.05 per pack of cigarettes or the amount levied under state law, whichever is greater. A governing body that levies such a cigarette tax and permits the use of meter impressions or stamps to evidence its payment may authorize an officer of the county, city or town or joint enforcement authority to enter into an arrangement with the Department of Taxation under which a tobacco wholesaler who so desires may use a dual die or stamp to evidence the payment of both the county, city, or town tax, and the state tax, and the Department is hereby authorized to enter into such an arrangement. The procedure under such an arrangement shall be such as may be agreed upon by and between the authorized county, city, town or joint enforcement authority officer and the Department.

B. Any county cigarette tax imposed shall not apply within the limits of any town located in such county where such town now, or hereafter, imposes a town cigarette tax. However, if the governing body of any such town shall provide that a county cigarette tax, as well as the town cigarette tax, shall apply within the limits of such town, then such cigarette tax may be imposed by the county within such town.

2.  That § 58.1-3831 of the Code of Virginia is repealed.