The City levies a tax on every person who sells, distributes, or uses cigarettes. Any person who sells or distributes is required to become qualified as a registered agent. Registered agents are required to provide a surety bond of 150 percent of their average monthly tax liability or $50,000, whichever is less, to the Northern Virginia Cigarette Tax Board.
The Northern Virginia Cigarette Tax Board operates by means of an interjurisdictional agreement. The Board collects and disburses taxes levied on cigarettes sold in the participating jurisdictions. The City of Alexandria is a participating jurisdiction.
Persons liable for the tax must prepare and file cigarette tax reports to the Board and pay the tax due between the first (1st) and twentieth (20th) day of each calendar or fiscal month. All filers are required to attach a copy of the previous month's cigarette tax report submitted to the Virginia Department of Taxation.
Computation of Tax
The tax is $1 for each package of cigarettes sold, distributed, or used in the City. A package can contain 20 cigarettes or fewer or more than that number. A tax is not imposed on the free distribution of packages containing five or fewer cigarettes.
How the Tax is Collected
Report forms may be obtained from, and taxes and reports should be sent to:
Northern Virginia Cigarette Tax Board
4400 Fair Lakes Ct. #103
Fairfax, VA. 22033
Phone : 703.802.0373
Fax : 703.802.0375
Business Records and Reports Subject to Audit
Any person liable for the tax should keep current and accurate records for audit by the Board.
Penalty for Failure to Pay Tax
Any person who fails to file and pay the tax is disallowed the prescribed sales discount of up to $500 granted by the Board. Also, the Board will charge a late reporting penalty of 10 percent of the gross tax due or $10, whichever is greater, not to exceed $1,000.
Any person who files a false or fraudulent report or attempts to evade payment of the tax will be administratively assessed the tax due, a penalty not to exceed 50 percent of the tax due, and interest of 0.75 percent per month of the gross tax due.
Any person found guilty of violating the Cigarette Tax Ordinance is subject to a fine of not more than $2,500 or imprisonment for not more than 12 months or both upon conviction.