VirginiaSB7882026 Regular SessionSenateWALLET

Alcoholic beverage control; payment of excise tax on beer, wine coolers, and wine, penalties.

Sponsored By: Russet Perry (Democratic)

Became Law

Summary

Alcoholic beverage control; payment of excise tax on beer, wine coolers, and wine; penalties. Specifies that the civil penalty imposed on a manufacturer, bottler, or wholesaler who fails to make any return, pay the full amount of certain taxes imposed on wine and beer, and submit certain reports is not to exceed 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. The bill also specifies that certain taxes collected by wholesale wine licensees at the time of or prior to sale to retail licensees and reports required to be submitted along with such taxes shall be postmarked or submitted electronically no later than the fifteenth of the month.The bill also provides a 60-day period for any such manufacturer, bottler, wholesaler, or retailer to make such return, pay the full amount of the excise tax, and submit such reports prior to the Board of Directors of the Virginia Alcoholic Beverage Control Authority suspending or revoking a license. The bill further provides that (i) absent willful intent to defraud the Commonwealth, a violation is deemed cured and no further action may be taken against the licensee if the manufacturer, bottler, wholesaler, or retailer files the required return, pays the full excise tax, submits all reports, and pays any civil penalties within the 60-day period and (ii) except in cases involving a false or fraudulent return with willful intent to defraud, the specified penalties are the sole penalties the Board may impose, notwithstanding any other law or regulation. The bill also requires the Authority to implement an online electronic system for wholesale wine licensees to (a) report to the Authority the purchases and sales made during the preceding month and the amount of state wine tax collected from retailers and (b) provide payment for the amount of taxes collected, less any refunds, replacements, or adjustments by January 1, 2027.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Where alcohol tax money goes

Within 50 days after each quarter, the Board certifies the taxes and the Comptroller moves the money from the special fund to the general fund. Each June 20, the Board estimates the June‑quarter amount so the Comptroller can transfer it before month‑end, with an adjustment within 50 days after the quarter closes. Forty‑four percent of liter‑tax money goes to counties, cities, and towns by population, and each locality gets at least what it received for the year ending June 30, 1976. Twelve percent of liter‑tax money stays with the Virginia ABC Board for operations. The share from farm‑winery wine and cider goes to the Virginia Wine Promotion Fund, and 20% of the distiller‑attributable spirits tax goes to the Virginia Spirits Promotion Fund.

Alcohol sellers: penalties and 60-day cure

No one may sell beer, wine coolers, or wine unless the excise tax is paid. Retailers must not handle products when they have reason to know the tax is unpaid. A violation is a Class 1 misdemeanor. Late filers or payers owe a 5% penalty for the first 30 days, plus 5% for each extra 30 days or part, up to 25%. A willful false or fraudulent return owes a 50% penalty. After notice, a licensee has 60 days to file, pay the full tax and civil penalties, and send required reports; if done, the violation is cured. Otherwise, the Board may suspend or revoke the license. Except for willful fraud, these listed penalties are the only penalties the Board may impose for these violations.

Alcohol taxes built into prices

For sales to non-wholesale buyers, the Board sets prices by adding a markup and then adding tax. It adds 20% for most items, or 4% for vermouth and farm‑winery wine and cider. For its accounting, the Board divides quarterly net sales by 1.20 (or 1.04) and multiplies by 20% (or 4%). Net sales means gross sales minus refunds. Final container prices may be rounded as allowed.

Wine wholesalers: monthly filing and e-pay

Wholesale wine licensees must collect the state wine tax when they sell to retailers. They must send the tax and required reports each month, postmarked or filed by the 15th. By January 1, 2027, manufacturers and wholesalers report purchases and sales online and pay through the system for the prior month, after any refunds or replacements. Wholesale wine licensees can claim a tax refund when wine is condemned or returned under Board rules. For other sales, the tax is collected from the buyer at or before the sale.

Sponsors & Cosponsors

Sponsor

  • Russet Perry

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 310 • No: 7

Senate vote 3/4/2026

House Amendments agreed to by Senate

Yes: 39 • No: 1

House vote 3/2/2026

Passed House with amendments

Yes: 91 • No: 6 • Other: 1

House vote 2/25/2026

Reported from Finance with amendment(s)

Yes: 21 • No: 0

House vote 2/24/2026

Subcommittee recommends reporting with amendment(s)

Yes: 9 • No: 0

House vote 2/24/2026

Subcommittee recommends reporting

Yes: 0 • No: 0

Senate vote 2/10/2026

Read third time and passed Senate Block Vote

Yes: 40 • No: 0

Senate vote 2/10/2026

Rehabilitation and Social Services Substitute rejected

Yes: 0 • No: 0

Senate vote 2/10/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/10/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 40 • No: 0

Senate vote 2/9/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/5/2026

Reported from Finance and Appropriations with substitute

Yes: 15 • No: 0

Senate vote 1/30/2026

Reported from Rehabilitation and Social Services with substitute and rereferred to Finance and Appropriations

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0904)

    4/13/2026Governor
  2. Approved by Governor-Chapter 904 (effective 7/1/2026)

    4/13/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  4. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB788)

    3/13/2026Senate
  6. Bill text as passed Senate and House (SB788ER)

    3/10/2026Senate
  7. Enrolled

    3/10/2026Senate
  8. Signed by President

    3/10/2026Senate
  9. Signed by Speaker

    3/10/2026House
  10. House Amendments agreed to by Senate (39-Y 1-N 0-A)

    3/4/2026Senate
  11. Passed House with amendments (91-Y 6-N 1-A)

    3/2/2026House
  12. Engrossed by House as amended

    3/2/2026House
  13. committee amendments agreed to

    3/2/2026House
  14. Read third time

    3/2/2026House
  15. Read second time

    2/27/2026House
  16. Reported from Finance with amendment(s) (21-Y 0-N)

    2/25/2026House
  17. Subcommittee recommends reporting with amendment(s) (9-Y 0-N)

    2/24/2026House
  18. Subcommittee recommends reporting

    2/24/2026House
  19. Assigned HFIN sub: Subcommittee #2

    2/20/2026House
  20. Read first time

    2/13/2026House
  21. Referred to Committee on Finance

    2/13/2026House
  22. Placed on Calendar

    2/13/2026House
  23. Fiscal Impact Statement from Department of Planning and Budget (SB788)

    2/11/2026Senate
  24. Read third time and passed Senate Block Vote (40-Y 0-N 0-A)

    2/10/2026Senate
  25. Constitutional reading dispensed Block Vote (on 3rd reading) (40-Y 0-N 0-A)

    2/10/2026Senate

Bill Text

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