Tobacco Taxes Virginia's excise tax per pack of cigarettes: $0.025 Virginia's excise tax collection for the fiscal year ending June 2002: $16,554,000 Sales tax on tobacco products: 4.50% Local tax on tobacco products: $35,060,548 Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000

Who Profits from Cigarette Sales? click for larger view

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Number of six-packs of beer that must be sold in Virginia to produce the same state excise tax revenue generated by one carton of cigarettes: 1.7

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Number of bottles of wine that must be sold in Virginia to produce the same state excise tax revenue generated by one carton of cigarettes: 0.8

Virginia Smokers' Contributions
to the State Economy - FY2003

Smokers Pay State and Local Excise Taxes2	$	57,257,000
Smokers Pay Sales Taxes2	$	96,076,000
Smokers Pay Tobacco Settlement Payments3	$	149,771,000
	$	303,104,000

• Income1

Virginia smokers' median household income	$	38,692
Virginia nonsmokers' median household income	$	48,073

• Working Families Pay More1

28.6% of Virginia smokers had household income LESS THAN $25,000




7.7% of Virginia smokers had household income EQUAL TO or GREATER THAN $75,000




The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.

• Smoker excise tax/sales tax/tobacco settlement payments liability in 20034

Total average paid per Virginia smoker in excise and sales taxes	$	117
Cost per Virginia smoker for settlement payments to Virginia	$	114
Total annual payments to Virginia per smoker	$	231
Total annual payments to Virginia per nonsmoker	$	0

TOTAL SMOKER CIGARETTE PAYMENTS TO VIRGINIA FY2003 Per year: $ 303,104,000 Per day: $ 829,854 Per hour: $ 34,577 Per minute: $ 576 Per second: $ 10

1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2002
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department.
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
5 Tax comparisons are from John Bennett, Secretary of Finance, "Actual General Fund Revenues for FY2003 and the State of the Virginia Economy: a Presentation to the Senate Finance, House Appropriations, and House Finance Committees, 25 August 2003. Online at http://www.finance.virginia.gov/KeyDocs/JMCmaterials/JMC-Aug2003.pdf. Budget Comparisons are from the Virginia Department of Planning and Budget, Governor Warner's Proposed 2004-2006 Biennial Budget, 17 December 2003. Online at http://www.dpb.state.va.us/Budget/Budget.htm.
6 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.

A summary of Virginia commonwealth law is provided below
(for specific questions regarding commonwealth law, contact your legal advisor.)

Minimum Age	Customers must be 18 years or older to purchase tobacco products. In addition, no person may purchase tobacco products on behalf of minors. No person or retail establishment may sell tobacco products to a buyer unless the buyer produces proper identification, unless the seller knows that the buyer is at least 18 years of age.
Restricted Products	Any tobacco product, including but not limited to cigarettes, cigars, bidis and wrappings (includes papers made or sold for covering or rolling tobacco or other materials for smoking in a manner similar to a cigarette or cigar).
Acceptable Forms of Identification	Driver’s license or other government-issued photo ID demonstrating that the buyer is at least 18 years of age.
Fine/Penalty Schedule for Selling to Minors	Persons or retailers found in violation will be fined up to $100 for the first offense, up to $200 for the second offense, and up to $500 for the third and subsequent offenses. Where a retail establishment offers proof that it has trained its employees regarding youth access laws, the court shall suspend all penalties. However, where the court finds that a retail establishment has failed to so train its employees, the court may impose a civil penalty not to exceed $1,000 in lieu of any other penalties imposed, other than for the sale of bidis. The sale, distribution or purchase of a bidi shall be punishable by a civil penalty in the amount of $500 for first violation, $1,000 for a second violation and $2,500 for a third or subsequent violation.
Affirmative Defense	Proof that the person demanded, was shown, and reasonably relied upon a photo identification stating that the individual was at least eighteen years of age shall be a defense.
Minor Possession	The purchase, attempted purchase and possession of any tobacco product including bidis and wrappings by persons under age 18 is prohibited, unless the possession is pursuant to employment. Minors found in violation are subject to a fine of up to $100 or 20 hours of community service for the first offense, and up to a $250 fine or 40 hours of community service for the second or subsequent offenses. If the defendant fails to complete the community service as required, the court may impose the civil penalty.
Sign Requirement	Retail establishments that offer for sale any tobacco product, including but not limited to cigarettes, cigars, and bidis, shall post in a conspicuous manner and place a sign or signs indicating that the sale of tobacco products, including wrappings, to any person under 18 years of age is prohibited by law. Violators will be fined up to $50.
Compliance Checks	As a condition of receiving federal substance abuse block grant funds, federal law requires the Commonwealth of Virginia to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. Compliance inspections are conducted by the Virginia Alcohol and Beverage Control (ABC) agency, which receives its funding from the Virginia Tobacco Settlement Foundation. ABC hires (as employees) Under-Aged Buyers (UAB) to conduct the inspections. Under the general enforcement authority of the ABC, and as paid part time state employees, the UABs are immune from prosecution under state under-aged tobacco purchase and sale laws.
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law.

The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.

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