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Billings & Collections
Frequently Asked Questions For Dealers, Sellers, and Retailers:
What happens if a retailer sells cigarettes without tax stamps?
Any untaxed cigarettes offered to sale to the public or possessed on the premises where cigarette sales occur are subject to seizure and destruction. Additional penalties may apply. The penalty for selling untaxed cigarettes is a Class 1 misdemeanor which carries a fine of up to 12 months in jail or up to $2,500 or both. There is also a monetary fine in addition to the seizure which is one half of the amount of the tax along with interest and a late payment penalty.
What if I didn't know about the city's Cigarette Tax?
It is the duty of all dealers and sellers to pay the tax and properly affix the cigarette tax stamps. It is also their duty to ensure that all cigarettes have the proper tax stamps before delivering or offering the cigarettes for sale to the public. All cigarettes should be inspected by the dealer and seller to ensure the tax stamps are displayed.
What if a retailer buys cigarettes and discovers that they do not have tax stamps?
The retailer should immediately check any purchase of cigarettes and inspect for the city stamps. If it is discovered that the cigarettes do not contain stamps, the retailer should return the cigarettes and only purchase cigarettes that have the proper state and city stamps affixed. Important Note: Any cigarettes without the proper city tax stamps are subject to seizure.
What is the responsibility of a local dealer in cigarettes?
Under Section 32-193 of the Code of the City of Roanoke, every local dealer and every agent appointed is required to purchase stamps from the City Treasurer and to affix the stamps to each package of cigarettes prior to delivering or furnishing such cigarettes to any seller. If a seller discovers cigarettes without the tax stamps, the seller should immediately return the cigarettes to the dealer who is required to affix the proper amount of tax stamps or replace the packages with others that are properly stamped.
What is the responsibility of a seller?
Every seller, dealer or retailer is required to examine each package of cigarettes prior to exposing it for sale for the purpose of ascertaining whether the cigarette package has the proper stamps affixed. If any unstamped or improperly stamped packages are discovered, the seller or retailer shall immediately notify the dealer. The dealer is required to affix the proper amount of stamps or replace the packages with others that are properly stamped.
What is the Cigarette Tax revenue used for?
The Cigarette Tax revenue supports the General Fund of the city. This fund is used to pay for basic city services such as police, fire, schools, and other city services.
How long should a seller or dealer keep records?
It is the duty of every seller and local dealer to maintain and keep for a period of three (3) years all records of cigarettes received and sold and to have all records available for inspection.
What happens to the untaxed cigarettes that are seized? And, can they be returned to the retailer?
Any cigarettes upon which the tax has not been paid and upon which stamps have not been affixed shall be seized. Such seized cigarettes are deemed to be forfeited to the city and are subject to destruction. Any unstamped cigarettes located on the premises are presumed to be offered for sale and are subject to seizure. Additional penalties may apply including fines and a Class 1 misdemeanor charge. A Class 1 misdemeanor charge carries a fine of up to $2,500 or 12 months in jail or both.
Can loose cigarettes be sold outside of a pack?
No, only properly stamped packs of cigarettes may be sold or offered for sale to the public. Loose cigarettes are considered untaxed and are in violation of Code of the City of Roanoke. Cigarettes are to be sold to the ultimate consumer in un-opened packages so that the label, stamps, stickers or health warning labels are not altered, removed, concealed or obscured.
Are tobacco products called "Little Cigars" considered to be a cigarette or a cigar and therefore not taxed?
Tobacco products called "Little Cigars" are considered to be a cigarette as defined in the Code of the City of Roanoke. Little Cigar packages are required to be sold with the proper city tax stamps.
For questions contact:
Billings & Collections
215 Church Ave., SW, Room 252
Roanoke, VA 24011-1529
(540) 853-2880
(540) 853-2458 (FAX)
email: billings@roanokeva.gov
This page was updated on July 1, 2008.
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