§ 3-2-104. Registered agents.

(a)

Any dealer or other person liable for the tax who shall sell, use, store, possess, distribute or transport cigarettes within or into the city shall first make application to the board to qualify as a registered agent. The application blank, which shall be supplied upon request, shall require such information relative to the nature of the business engaged in by the applicant as the board deems necessary for the administration and enforcement of this article. There is a yearly Registration Fee for all Wholesale Dealers and for all Cigarette Machine Operators. The applicant shall provide a surety bond to the board of 150 percent of the average monthly tax liability of the applicant, with a surety company authorized to do business in the Commonwealth of Virginia. The 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 city shall automatically, by filing his application, submit himself to the board's legal jurisdiction and appoint the administrator for the board as his agent for any service of lawful process.

(b)

Upon receipt of the properly completed application forms, and the required surety bond executed, the board shall determine whether the said applicant qualifies to be a registered agent. The Board will issue to said qualified applicant a yearly registered agent permit to purchase, sell, use, store, possess, distribute or transport Northern Virginia Cigarette Tax Board-stamped cigarettes within or into the city.

(c)

Registered agents shall agree to the reporting and payment requirements placed upon them by this article and the rules and regulations as from time to time may be promulgated by the board. 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 percent of the gross tax due or $10, whichever is greater, but in no event more than $1,000. The board may also require the registered agent to provide proof that he has complied with all applicable laws of the Commonwealth of Virginia to legally conduct his business and to file financial statements showing all assets and liabilities. 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 his cigarette tax surety bond should become impaired for any reason.

(d)

All money collected as cigarette taxes under this ordinance shall be deemed to be held in trust by the dealer collecting the same until remitted to the board.

(e)

Registered agents must account for all Northern Virginia Cigarette Tax Board 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 for 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 percent of the gross tax due. (Ord. No. 4473, 1/20/07, Sec. 1)