Virginia Law

A. No person shall make a sale taxable under § 4.1-1004 without paying all applicable taxes due. No retail marijuana store or microbusiness licensee shall purchase, receive, transport, store, or sell any marijuana or marijuana products on which such retailer has reason to know such tax has not been paid and may not be paid. Any person convicted of a violation of this subsection is guilty of a Class 1 misdemeanor.

B. Any person who fails to file a return required for a tax due under § 4.1-1004 is subject to a civil penalty to be added to the tax in the amount of five percent of the proper tax due if the failure is for not more than 30 days, with an additional five percent for each additional 30 days, or fraction thereof, during which the failure continues. Such civil penalty shall not exceed 25 percent in the aggregate. In addition to any civil penalty imposed pursuant to this subsection, the Authority shall revoke the license of any licensee who knowingly and willfully violates this subsection for a period of three years.

C. In the case of a false or fraudulent return, where willful intent exists to defraud the Commonwealth of any tax due on marijuana or marijuana products, a civil penalty of 50 percent of the amount of the proper tax due shall be assessed. Such penalty shall be in addition to any penalty imposed under subsection B. It shall be prima facie evidence of willful intent to defraud the Commonwealth when any person reports its taxable sales to the Authority at 50 percent or less of the actual amount. In addition to any civil penalty imposed pursuant to this subsection, the Authority shall revoke the license of any licensee who knowingly and willfully violates this subsection for a period of three years.

D. If any check tendered for any amount due under § 4.1-1004 or this section is not paid by the bank on which it is drawn, and the person that tendered the check fails to pay the Authority the amount due within five days after the Authority gives it notice that such check was returned unpaid, the person that tendered the check is guilty of a violation of § 18.2-182.1. In addition to any civil penalty imposed pursuant to this subsection, the Authority shall revoke the license of any licensee who knowingly and willfully violates this subsection for a period of three years.

E. All penalties shall be payable to the Authority and if not so paid shall be collectible in the same manner as if they were a part of the tax imposed.

2026, Sp. Sess. I, c. 1.