The law of Virginia requires that as evidence that the excise tax provided for by § 58-757.1 has been paid a stamp shall be affixed as provided by law. The responsibility of affixing such stamps is delegated to tobacco wholesalers who are allowed a discount on the amount of the tax in order to provide compensation for the service which they perform. In response to allegations that the amount of the discount is often insufficient reimbursement, the General Assembly directed the Virginia Advisory Legislative Council to study the matter by House Joint Resolution No. 27.

Pursuant to this Resolution, the Council selected Edward E. Lane, of Richmond,, one of its members, to serve as Chairman of the Committee to make the initial study and report. The following were selected to serve on the Committee with Mr. Lane: Jack G. Bess, Roanoke; C. W. Gleaton, South Hill; W. W. Estes, South Hill; William R. Hill, Jr., Richmond; J. L. Kantor, Norfolk; Andrew K. Leake, Richmond; R. J. Myers, Warrenton; E. B. Pendleton, Richmond; Charles H. Reed, Richmond; Wayland W. Rennie, Richmond; Thomas E. Sheppard, Richmond; H. M. Tanner, LaCrosse; Joseph B. Whitley, Richmond.

The Virginia Advisory Legislative Council and the Division of Statutory Research and Drafting made staff and facilities available to carry out this study, Laurens Sartoris being assigned as counsel to assist the members and the study committee.

Representatives of the Virginia Wholesalers and Distributors Association, the Tobacco Tax Council and the Department of Taxation were heard. There was unanimity among these as to the financial burden placed on many wholesalers by the present system of reimbursement for the affixing of tax stamps. After due deliberation and research the Council now makes its report.