RICHMOND, Va. --The Virginia state legislature is considering a recommendation by the Virginia State Crime Commission to require tobacco retailers to obtain a state license in order to sell cigarettes, according to the Associated Press. As with liquor retailers, the Alcoholic Beverage Control (ABC) Department would oversee licensing and enforcement of tobacco retailers.
A report issued by the crime commission staff said this kind of regulation could help combat illegal cigarette trafficking due to Virginia's low excise tax (the second lowest in the country).
"If retail sales of tobacco are dependent upon a state issued license that can be revoked for criminal violations, retailers will have more of an incentive to properly obey all statues and regulations," the report said.
Mike O'Connor, president of the Virginia Petroleum, Convenience and Grocery Association (VPCGA), argued that a strong majority of the state's 4,600 convenience stores follow the rules and that state officials should instead focus on prosecuting actual offenders.
"To impose a burden on the 99% to go after the 1% doesn't seem to be the Virginia way," O'Connor told the news agency.
Though the VPCGA opposes the current proposal, O'Connor said his organization has supported other legislative measures to combat illegal cigarette trafficking, including increasing criminal penalties.
Members of the commission say such measures haven't worked, and state-to-state trafficking remains an issue because it is so potentially profitable: experts told the commission a smuggler can turn a profit of approximately $170,000 from just one vanload of cigarettes; a truckload with 800 cases can garner a $4 million profit.
Kathleen Shaw, a spokesperson for the ABC, said the department did not have an opinion on the issue, but voiced concerns over how the state would pay for the department's expanded responsibilities.
"We know that resources are a big part of the conversation, but they need to have more discussions about it," she said.
The report suggested the costs of an ABC tobacco unit could be offset by returning potential penalties for violations directly to the agency rather than to the Virginia Department of Taxation and that licensing fees would be another revenue source. Obtaining a license to sell alcohol currently costs retailers $65 in application fees and $120 to $665 for the actual permit depending on the type of license.
The commission will further discuss the proposal at its meeting this week, though the General Assembly would have to approve the proposal in order for it to be enacted.
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