(A) Any dealer or other person liable for the tax who shall sell, use, store, possess, distribute or transport cigarettes within or into the county shall first make application to the Board to qualify as a registered agent. The application form shall require such information as the Board deems necessary for the administration and enforcement of this subchapter. Applications shall be subject to yearly Registration Fees for all Wholesale Dealers and all Cigarette Machine Operators. Applicants shall provide a surety bond to the Board in the amount of 150% of the applicant's average monthly tax liability. Such bonds shall be issued by a surety company authorized to do business in the Commonwealth of Virginia. Such bond shall be so written that, on timely payment of the premium thereon, it shall continue in force from year to year. Any applicant whose place of business is outside the area subject to enforcement by the Board shall automatically, by filing virtue of filing of the application, be deemed to submit to the Board's legal jurisdiction and appoint the Administrator for the Board as agent for any service of lawful process, unless the applicant designates an attorney with offices within the county upon which lawful process is to be served. Upon receipt of properly completed application forms and the required surety bond, the Board shall determine whether the applicant qualifies to be a registered agent. The Board will issue to qualified applicants a yearly registered agent permit to enable such agent to purchase, sell, use, store, possess, distribute or transport within or into the county, CBRCTB-stamped cigarettes.
(B) By submitting an application, registered agents obligate themselves to the reporting and payment requirements placed upon them by this subchapter and the rules and regulations as from time to time may be promulgated by the Board.
(C) When any registered agent's monthly report and payment of the tax is not received within the dates prescribed, the Board shall impose a late reporting penalty of 10% of the gross tax due or $10 whichever is greater, but in no event more than $1,000.
(D) The Board also may require such registered agent to provide proof that he has complied with all applicable laws of the Commonwealth of Virginia to legally conduct such business and to file financial statements showing all assets and liabilities.
(E) The Board may revoke or suspend any registered agent's permit due to failure to file tax reports in a timely manner, non-payment of taxes due, or if the cigarette tax surety bond should become impaired for any reason.
(F) All money collected as cigarette taxes under this subchapter shall be deemed to be held in trust by the dealer collecting the same until remitted to the Board.
(G) Registered agents must account for all CBRCTB authorized tax stamps purchased. Periodic audits may be conducted to determine any unaccounted variance between the number of stamps purchased and the number of stamps reported, and an assessment will be made for all unaccounted stamps. Any assessment of registered agents located outside the jurisdictions of the Board will be based upon the average sales of packages of cigarettes by jurisdiction during the audit period. For registered agents located within the jurisdictions of the Board, any assessment will be based upon the tax rate of the jurisdiction in which they are located. In addition, there will be a penalty for non-reporting of 10% of the gross tax due.
(Ord. passed 4-12-2022) Penalty, see § 33.999