Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-609.1, 58.1-2100, 58.1-2101, 58.1-2103, 58.1-2105, 58.1-2106, 58.1-2107, 58.1-2111, 58.1-2111.1, 58.1-2112, 58.1-2114 through 58.1-2119, 58.1-2122 through 58.1-2124.1, 58.1-2126, 58.1-2128, 58.1-2128.1, 58.1-2129, 58.1-2133, 58.1-2134, 58.1-2135, 58.1-2142, 58.1-2142.1, 58.1-2144, 58.1-2145, 58.1-2146, 59.1-21.16:2, and 62.1-44.34:13 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding sections numbered 58.1-2116.1, 58.1-2131.2, 58.1-2131.3, 58.1-2144.1, and 58.1-2145.1 as follows:
§ 58.1-609.1. Governmental and commodities exemptions.
2. Motor vehicles, trailers, semitrailers, mobile homes and travel trailers.
3. Gas, electricity, or water when delivered to consumers through mains, lines, or pipes.
4. Tangible personal property for use or consumption by the Commonwealth, any political subdivision of the Commonwealth, or the United States. This exclusion shall not apply to sales and leases to privately owned financial and other privately owned corporations chartered by the United States.
5. Aircraft subject to tax under Chapter 15 (§ 58.1-1500 et seq.) of this title.
6. Motor fuels
7. Sales by a government agency of the official flags of the United States, the Commonwealth of Virginia, or of any county, city or town.
8. Materials furnished by the State Board of Elections pursuant to subdivision (8), (9), or (10) of § 24.1-23.
9. Watercraft as defined in § 58.1-1401.
10. Tangible personal property used in and about a marine terminal under the supervision of the Virginia Port Authority for handling cargo, merchandise, freight and equipment. This exemption shall apply to agents, lessees, sublessees or users of tangible personal property owned by or leased to the Virginia Port Authority and to property acquired or used by the Authority or by a nonstock, nonprofit corporation that operates a marine terminal or terminals on behalf of the Authority.
11. Sales by prisoners confined in state correctional facilities of artistic products personally made by the prisoners as authorized by § 53.1-46.
12. Tangible personal property for use or consumption by the Virginia Department for the Visually Handicapped or any nominee, as defined in § 63.1-142, of such Department. (Also see § 63.1-164, which provides a more detailed explanation of the exemption.)
§ 58.1-2100. Title.
This chapter shall be known and may be cited as the "
§ 58.1-2101. Definitions.
As used in this chapter, unless the context clearly shows otherwise, the term or phrase:
"Aircraft" means any kind of vehicle designed or used for untethered navigation or flight in the air.
"Assessment" means a written determination by the Department of Motor Vehicles of the amount of taxes owed by a taxpayer. Assessments made by the Department of Motor Vehicles shall be deemed to be made when a written notice of assessment is delivered to the taxpayer by the Department of Motor Vehicles or is mailed by certified or registered mail to the taxpayer at his last known address.
"Aviation consumer" means any person who uses in excess of 100,000 gallons of aviation special fuel in any fiscal year and is licensed pursuant to § 58.1-2135.
"Aviation motor fuel" means
"Aviation fuel user" means any person, other than an "aviation consumer," who receives, uses, or stores aviation special fuel.
“Aviation special fuel” means fuel designed for use in the operation of turbine powered aircraft, and sold or used for that purpose. The term shall not include aviation motor fuel.
“Blended fuel” means: fuel produced by blending regular gasoline with premium gasoline to produce mid-grade gasoline; fuel produced by blending ethanol into gasoline; fuel produced by blending kerosene into dyed or undyed diesel fuel to reduce pour point; or fuel produced by blending additives into dyed or undyed diesel fuel.
“Blender” means any person that produces blended fuel.
“Blending” means the mixing of one or more petroleum products with another product, regardless of the original character of the product blended, if the product obtained by the blending is capable of use in the generation of power for the propulsion of a highway vehicle, an airplane, or a motorboat. This term does not include blending which occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oils and greases.
"Bonded aviation fuel" means aviation special fuel held in bonded storage under United States Customs Law and delivered into the fuel supply tank of aircraft operated by certificated air carriers on international flights.
"Bulk plant" means a
"Bulk storage" means a storage of fuel in bulk quantities.
"Bulk user" means any person who maintains bulk storage facilities for the
purpose of fueling aircraft or
"Clean special fuels" means all products or energy sources used to propel a
"Commissioner" means the Commissioner of the Department of Motor Vehicles.
"Corporate or partnership officer" means an officer or director of a corporation, or partner of a partnership, or member of a limited liability company, who as such officer, director, partner or member is under a duty to perform on behalf of the corporation, partnership, or limited liability company the tax collection, accounting, or remitting obligations.
"Dealer" means and includes the following persons, required to be licensed as a dealer pursuant to § 58.1-2135:
(a) A person who imports, or causes to be imported, into the Commonwealth any motor fuel for use by or distribution or sale and delivery to another in the Commonwealth.
(b) A person who imports, or causes to be imported, into the Commonwealth any
motor fuel for his own use in any container other than the usual tank or
receptacle connected with the engine of the
(c) A person selling over one-half million gallons of motor fuel in any calendar year who elects to be licensed as a dealer.
(d) A person who maintains and operates a bulk storage within the Commonwealth who receives motor fuel by tank car, barge, pipeline delivery, common or contract carrier or self-owned equipment from another point within the Commonwealth.
(e) A person who produces, refines, manufactures, blends, or compounds any motor fuel in the Commonwealth for use, distribution or sale and delivery in the Commonwealth.
(f) A person who produces, refines, manufactures, blends, or compounds motor fuel in the Commonwealth for his own use.
The term "dealer" shall not include a railroad company purchasing motor fuel
for use in its railroad business and not for use in
"Department" means the Department of Motor Vehicles, acting directly or through its duly authorized officers and agents.
"Destination state" means the state for which a tanker truck or barge is destined to off-load the fuel it is transporting into storage facilities for purposes of resale or consumption in such state.
“Diesel fuel” means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle or diesel-powered boat. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or boat.
“Dyed diesel fuel” means any diesel fuel that is required to be dyed in accordance with any rule, regulation, or mandate of the United States Environmental Protection Agency or the Internal Revenue Service.
“Exemption certificate” means a serially-numbered certificate
approved and issued by the Commissioner, which is to be affixed on bulk
storage facilities of resellers and bulk users of
"Export" means (i) fuel delivered out of state by or for the seller constitutes an export by the seller or (ii) fuel delivered out of state by or for the purchaser constitutes an export by the purchaser.
"Exporter" means any person, other than a dealer or supplier, who purchases
fuel in the Commonwealth for the purpose of transporting or delivering such
fuel to another state, district or country. This definition does not apply to
fuel transported outside of the Commonwealth in the fuel supply tank of a
"Fuel" or "fuels" means all combustible gases and liquids used or suitable
for use in an internal combustion engine or motor for the generation of power
“Heating oil” means any combustible liquid, including but not limited to #1 fuel oil, #2 fuel oil, and kerosene, that is burned in a boiler, furnace, or stove for heating or for industrial processing purposes.
"Highway" means every way or place of whatever nature open to the use of the public for purposes of vehicular travel in the Commonwealth, including the streets and alleys in towns and cities.
“Highway vehicle” means any vehicle operated, or intended to be operated, on a highway. The term does not include: (i) farm machinery including machinery designed for off-road use but capable of movement on roads at low speeds; (ii) a vehicle operated on rails; or (iii) machinery designed principally for off-road use.
"Import" means (i) fuel delivered into Virginia from out of state by or for the seller constitutes an import by the seller or (ii) fuel delivered into Virginia from out of state by or for the purchaser constitutes an import by the purchaser.
“Importer” means any person who imports fuel. If the importer of record is acting as an agent, the person for whom the agent is acting is the importer. If there is not an importer of record, the owner of the fuel at the time it is brought into the Commonwealth is the importer. Any person who imports fuel is required to be licensed as a dealer or a supplier.
"Jobber" means any person who receives motor fuel by tank car, barge, pipeline, common or contract carrier or in self-owned equipment from a point within Virginia who has not qualified to pay the motor fuel tax directly to the Commonwealth, if such person complies with all of the applicable provisions of this chapter.
"Licensee" means any person licensed by the Commissioner pursuant to § 58.1-2135.
"Liquid" means any substance which is liquid at temperatures in excess of sixty degrees Fahrenheit and a pressure of 14.7 pounds per square inch absolute.
"Motor fuel" means all products commonly or commercially known, advertised, offered for sale, sold or used as gasoline, including casinghead or natural gasoline. The term shall include all other types of additives when such additives are mixed or blended into gasoline, regardless of their classifications or uses.
"Principal" means (i) in the case of a partnership, all the partners; (ii) in
the case of a corporation, all its officers, directors, and controlling
“Refiner” means any person that owns, operates, or otherwise controls a refinery.
"Refinery" means a facility for the manufacture or reprocessing of finished or unfinished petroleum products which are capable of use as fuel.
"Reseller" means any person, other than a "supplier," who sells or delivers
diesel fuel, aviation special fuel, and clean special fuels into a
fuel supply tank of an aircraft or
"Supplier" means any person who is an exporter of diesel fuel, aviation
special fuel, or clean special
"Synthetic motor fuel" means motor fuel containing at least twenty percent coal-based liquids blended to meet fuel specifications.
"Synthetic special fuel" means fuel containing at least twenty percent coal-based liquids blended to meet specifications.
“Taxable fuel” means motor fuel, undyed diesel fuel with the exception of kerosene, aviation special fuel, clean special fuels, synthetic motor fuel, synthetic special fuel, ethanol and blends thereof and any other substance blended with any of the foregoing, to include kerosene or #1 fuel oil when used in a highway vehicle.
"Terminal" means a fuel storage and distribution facility which is supplied by pipeline, marine vessel, or rail car and from which fuel may be removed at the rack. The term does not include any facility at which fuel blend stocks and additives are used in the manufacture of products other than fuel and from which no fuel is removed.
“Terminal operator” means any person that owns, operates, or otherwise controls a terminal.
"Use" means the actual consumption or receipt of fuel by any person into an
"User" means any person who (i) does not maintain storage facilities for
fueling aircraft or
§ 58.1-2103. Exchange of information among the states.
A. The Commissioner may, in his discretion, upon request from the officials
entrusted with the duty of enforcement of the
B. The Commissioner is authorized to enter into written agreements with duly constituted tax officials of other states and of the United States for the inspection of tax returns, the making of audits, and the exchange of information relating to taxes administered by the Department of Motor Vehicles pursuant to this chapter.
C. Any person to whom tax information is divulged pursuant to this section shall be subject to the prohibitions and penalties prescribed in § 58.1-3 as though that person were a tax official as defined in that section.
§ 58.1-2105. Levy of tax on all motor fuels.
A. Except as provided in
B. A tax at the rate of five cents per gallon is hereby levied on all aviation motor fuel which is sold and delivered or used in Virginia. Any person, whether or not licensed under this chapter, who uses, acquires for use, sells or delivers for use in highway vehicles any aviation fuel taxable under this chapter shall be liable for the tax at the rate of seventeen and one-half cents per gallon, along with any penalties and interest which may accrue.
C. Upon application to and approval by the Commissioner, any producer of synthetic motor fuel produced from coal in a county with a population between 19,000 and 51,000 as determined by the 1980 U.S. Census shall be subject to tax as set forth in this subsection:
1. For the first three years of production, the tax shall be three cents per gallon;
2. For the fourth year of production, the tax shall be nine cents per gallon;
3. For the fifth year of production, the tax shall be eleven and one-half cents per gallon;
4. For the sixth and seventh years of production, the tax shall be thirteen and one-half cents per gallon;
5. For the eighth and ninth years of production, the tax shall be fifteen and one-half cents per gallon; and
6. Beginning in the tenth year of production and thereafter, the tax shall be at the rate prescribed in subsection A. The total number of gallons of synthetic motor fuel and synthetic special fuel subject to tax in subsection C of this section and subsection D of § 58.1-2116 shall not exceed twenty-five million gallons per fiscal year.
§ 58.1-2106. Exemptions from tax.
1. Sold and delivered by a dealer in the Commonwealth to the Commonwealth or any political subdivision thereof for the exclusive use by the Commonwealth or any political subdivision thereof; or
2. Sold and delivered by a dealer in the Commonwealth to the United States or its departments, agencies and instrumentalities for the exclusive use by the United States or its departments, agencies and instrumentalities.
The term "exclusive use by the United States or its departments, agencies and instrumentalities" shall be construed to specifically exclude the use of such motor fuel by any person, whether operating under contract with the United States or its departments, agencies and instrumentalities or not, if the original purchase by such person from a dealer would have rendered the dealer liable for the payment of motor fuel taxes under the laws of this Commonwealth.
§ 58.1-2107. Reports; payment of tax.
A. On or before the last day of each calendar month, each dealer
B. At the time of rendering such report the dealer shall pay to the Commissioner the tax herein levied on all motor fuel sold and delivered or used within the Commonwealth during the preceding calendar month except that which is sold to a limited dealer or another duly licensed motor fuel dealer. No dealer shall pay the tax on motor fuel received by him from a point within the Commonwealth from another duly licensed dealer who has paid or assumed the payment of such tax.
§ 58.1-2111. Refund of tax on motor fuel.
A. A refund shall be granted in accordance with the provisions of § 58.1-2112 to any person who establishes to the satisfaction of the Commissioner that he has paid the tax levied pursuant to this chapter and such tax was paid upon the single purchase of five or more gallons of any motor fuel utilized for any of the following purposes:
1. Operating or propelling commercial boats and ships, stationary gas
engines, or pumping or mixing equipment on
2. Operating or propelling tractors used for agricultural purposes;
3. Operating or propelling buses owned and operated by a county or the school board thereof while being used to transport children to and from public schools;
4. Operating or propelling buses owned or solely used by a private nonprofit
nonsectarian school while being used to transport children to and from such
school or from such school to and from educational or athletic activities.
The total refunds allowed to any applicant under this subdivision with
respect to all motor fuel
5. Operating or propelling the equipment of volunteer fire-fighting companies and of volunteer rescue squads within the Commonwealth actually and necessarily used for fire-fighting or rescue purposes;
6. Operating or propelling motor equipment belonging to counties, cities and towns if actually and exclusively used in public activities;
7. Operating or propelling licensed or unlicensed
8. Spraying purposes or for cleaning, dyeing or other commercial use, except
9. Operating and propelling
10. Operation of a farm by a resident of the Commonwealth, such farm being located on any island outside the Commonwealth but within one mile of its boundaries;
11. Any private, nonprofit area agency on aging, designated by the Department for the Aging, providing transportation services to citizens in highway vehicles owned, leased, operated or under contract by such area agency; and
12. Operating or propelling
B. A refund shall be granted in accordance with § 58.1-2112 of any tax paid pursuant to this chapter upon motor fuel:
1. Purchased by a person, firm or corporation and subsequently transported and delivered by such person, firm or corporation to another state, district or country for sale or use without the Commonwealth;
2. Sold by a dealer in the Commonwealth to any corporation, partnership or
other entity performing transportation under contract or lease with any
transportation district created under the Transportation District Act of 1964
(§ 15.1-1342 et seq.) for use in a
3. Transferred to a duly licensed dealer for bulk storage in the Commonwealth by tank car, barge, pipeline or transport truck from a point within the Commonwealth by another duly licensed dealer who has paid or assumed the payment of the tax. No dealer who is reporting the tax on a sales basis with stock loss shown as a nontaxable item shall be eligible for such a refund, nor shall any refund be paid on any fuel which is subsequently sold tax exempt or exported from the Commonwealth as subject to export refund under subdivision B 1 of this section; or
4. Proven to be lost by accident, except through personal negligence or theft.
C. Any county or city school board or any private, nonprofit, nonsectarian school contracting with a private carrier to transport children to and from public schools or any private, nonprofit, nonsectarian school shall be refunded the tax imposed by this chapter on such carrier on fuel so used. Such refund shall be paid pursuant to § 58.1-2112.
D. On any island in this Commonwealth on which no
§ 58.1-2111.1. Refund for solid waste compacting vehicles and ready-mix concrete vehicles.
Any person who purchases motor fuel in quantities of five gallons or more at
any one time for consumption in a solid waste compacting
§ 58.1-2112. Procedure to obtain refund; time for filing.
Any person entitled to a refund pursuant to § 58.1-2111 or § 58.1-2111.1
shall file with the Commissioner an application in writing on a form prepared
and furnished by the Commissioner, duly signed by the applicant, and
accompanied by a paid ticket or invoice from the dealer or retail distributor
showing such purchase. A ticket issued to the holder of a credit card
evidencing the delivery to such holder of tax-paid motor fuel shall, for the
purpose of this section, be deemed a paid ticket or invoice. The application
shall set forth the basis for the claimed refund, the total amount of such
fuel purchased and used by such applicant, other than in
Upon the presentation of the application and paid ticket, invoice or
facsimile, the Commissioner shall refund to the applicant the taxes paid on
fuel sold and delivered and used, other than fuel sold, delivered and used
The application for refund shall be filed with the Commissioner within twelve months from the date of the sale as shown on the paid ticket or invoice. Notwithstanding, an application for a refund pursuant to subdivision 1 of subsection B of § 58.1-2111 shall be filed within three years of the date such motor fuel is transported without the Commonwealth, and an application for a refund pursuant to subdivision 3 of subsection B of § 58.1-2111 shall be filed within ninety days of the date such motor fuel is received.
An application for a refund shall be deemed filed if it is sent to the Commissioner in an envelope bearing a postmark dated on or before midnight of the last day on which it could have been filed with the Commissioner in person.
In the event an assessment is rendered for failure to report and pay the tax imposed by § 58.1-2105 and such fuel is subject to refund under the provisions of § 58.1-2111, application for refund may be filed with the Commissioner by the person entitled to such refund within twelve months from the date such assessment is paid and shall be accompanied by invoices covering the sale of the fuel and billing of tax to such person.
§ 58.1-2114. Refunds to certain bus lines and taxicab services; payment.
A. Any person who purchases motor fuel for consumption in
The amount of the refund shall be equal to the amount of the tax paid, except for refunds granted on the tax paid on fuel used by a taxicab service. The refund granted on fuel used by a taxicab service shall be in an amount equal to the tax paid less one cent per gallon on fuel so used.
B. Any person entitled to a refund under subsection A of this section shall file with the Commissioner, on forms prepared and furnished by him, an application, in writing, duly signed by the applicant, and accompanied by a paid ticket or invoice from the dealer or retailer showing such purchase. The application shall set forth: (i) the total amount of fuel purchased; (ii) the total amount of fuel used as provided in subsection A of this section; and (iii) how such fuel was used. The Commissioner, upon the presentation of such application and paid ticket, invoice or other document, shall pay to the applicant from the taxes collected on motor fuel, the refund as provided in subsection A of this section. The application for a refund must be filed with the Commissioner within three months from the date of the sale or invoice.
No refund shall be granted for
C. Except as otherwise provided in this chapter, all provisions of law applicable to the refund of gasoline taxes and other motor fuel taxes by the Commissioner shall apply to the refunds authorized by this section. Any city, town or county having withdrawn its roads from the secondary system of state highways under the provisions of § 11 of Chapter 415 of the Acts of 1932 shall receive its proportionate share of such special funds as is now provided by law with respect to other motor fuel tax receipts.
§ 58.1-2115. Use of metered pumps by resellers; invoices or delivery tickets to be furnished by supplier; requirement for a shipping document.
A. Each reseller shall dispense all
B. Each sale of
C. Each supplier shall
D. Not more than one original copy of any invoice for a single sale of fuel shall be prepared by any person. Any additional copy prepared shall be plainly marked "Duplicate," and the number of the original ticket or invoice shall be indicated thereon.
E. Each person operating a refinery, terminal or bulk plant within the Commonwealth shall prepare and provide to the person operating each vehicle or waterborne vessel, receiving cargo in bulk at the facility, a shipping document which states on its face the destination state for the fuel received, as represented by the purchaser or the purchaser's agent. The supplier or terminal operator may rely for all purposes of this chapter on the representation of the purchaser or the purchaser's agent as to the intended destination state, and the purchaser and his agent shall be liable for any tax otherwise due as a result of a diversion of the fuel from the represented destination state.
F. No person engaged in the transportation or shipment of
§ 58.1-2116. Levy of tax; liability for tax.
A. Except as otherwise provided in subsections B, C, D
1. Sold or delivered by any supplier into a bulk storage facility of any licensed reseller or bulk user;
2. Used by any supplier in any motor vehicle owned, leased, or operated by him;
3. Delivered by a supplier directly into the fuel supply tank of a motor vehicle;
4. Imported by a reseller or bulk user, into this Commonwealth;
5. Acquired tax free by a reseller, bulk user, or user in this Commonwealth, for resale or use for the propulsion of a motor vehicle; or
6. Purchased by any person, firm or corporation, except a licensed supplier, and subsequently transported and delivered by such person, firm, or corporation to another state, district, or country for sale or use without the Commonwealth.
B. A tax at the rate of five cents per gallon is hereby imposed upon all aviation special fuel:
1. Sold or delivered by any supplier, other than an aviation consumer, to any licensed reseller or bulk user;
2. Used by a supplier, other than an aviation consumer, in any aircraft owned, leased or operated by him;
3. Delivered by a supplier directly into the fuel supply tank of an aircraft, other than an aircraft owned, leased or operated by a licensed aviation consumer; or
4. Imported by a reseller or bulk user into, or acquired tax free by a reseller, bulk user or user in this Commonwealth for resale or use for the propulsion of an aircraft.
C. A tax at the rate of five cents per gallon is hereby imposed on aviation special fuel purchased or acquired for use by an aviation fuel user. A tax at the rate of five cents per gallon is hereby imposed upon the first 100,000 gallons of aviation special fuel, excluding bonded aviation special fuel, purchased or acquired for use by any aviation consumer in any fiscal year. A tax at the rate of one-half cent per gallon is hereby imposed on all aviation special fuel, excluding bonded aviation special fuel, purchased or acquired for use in excess of 100,000 gallons by an aviation consumer in any fiscal year.
Any person who shall, while licensed or unlicensed under this chapter, use, acquire for use, sell or deliver for use in highway vehicles any aviation special fuel taxable under this article shall be liable for the tax imposed at the rate of sixteen cents per gallon under this section, along with any penalties and interest which may accrue.
D. Upon application to and approval by the Commissioner, any producer of synthetic special fuel produced from coal in a county with a population between 19,000 and 51,000 as determined by the 1980 U.S. Census shall be subject to tax as follows:
1. For the first three years of production, the tax shall be three cents per gallon;
2. For the fourth year of production, the tax shall be nine cents per gallon;
3. For the fifth year of production, the tax shall be eleven and one-half cents per gallon;
4. For the sixth and seventh years of production, the tax shall be thirteen and one-half cents per gallon;
5. For the eighth and ninth years of production, the tax shall be fifteen and one-half cents per gallon; and
6. Beginning in the tenth year of production and thereafter, the tax shall be at the rate prescribed in subsection A. The total number of gallons of synthetic special fuel and synthetic motor fuel subject to tax in this subsection and subsection C of § 58.1-2105 shall not exceed twenty-five million gallons per fiscal year.
1. Sold or delivered by any supplier to any licensed reseller or bulk user;
2. Used by any supplier in any motor vehicle owned, leased, or operated by him;
3. Delivered by a supplier directly into the fuel supply tank of a motor vehicle; or
4. Acquired tax free by a reseller, bulk user, or user in this Commonwealth, for resale or use for the propulsion of a motor vehicle.
§ 58.1-2116.1. Backup tax; joint liability.
Any operator of a highway vehicle who uses dyed diesel fuel, or any other liquid, in a fuel supply tank of a highway vehicle, except as otherwise provided in § 58.1-2118, is liable for the payment of the tax imposed under § 58.1-2116. In addition, any person who delivers dyed diesel fuel, or any other liquid, into the supply tank of a highway vehicle and who knew or had reason to know that the fuel was dyed diesel fuel, is jointly and severally liable for the payment of the tax imposed under § 58.1-2116.
§ 58.1-2117. Liability for tax on nontaxpaid diesel fuel or aviation special fuel sold or delivered.
Any person, licensed or unlicensed, who delivers any diesel fuel or
§ 58.1-2117.1. Liability for certain taxes not paid on clean special fuels.
A. Any person not required to be licensed as a supplier who fuels his pickup, panel truck, or passenger vehicle from a private residence or otherwise uses clean special fuels upon which the tax imposed on clean special fuels has not been paid shall pay an annual license tax of fifty dollars per vehicle.
B. The Commissioner shall annually starting January 1, 1994, collect or
cause to be collected the annual tax from owners of highway
vehicles subject to the license tax under this section. Applications
for such licenses shall be supplied by the Department of Motor Vehicles. In
the case of a
C. Upon payment of the tax required by subsection B, the Commissioner shall issue to the applicant a license certificate to use such fuel in the Commonwealth. The license certificate so issued shall be conspicuously affixed to the source of the clean special fuel supply.
D. The penalty for any violation of this section shall be equal to ten percent of the tax due. After imposition of the penalty, the tax and penalty shall bear interest at the rate of one percent per month until the tax and penalty are paid. The Commissioner shall have the power to reduce or waive any penalties provided in this section if the violation is due to reasonable or good cause as shown to the satisfaction of the Commissioner.
§ 58.1-2118. Exemptions from tax.
No tax shall be levied or collected pursuant to this article on:
4. Aviation special fuel sold to aviation consumers;
5. Liquid petroleum gas, commonly referred to as “LP gas” or
“propane gas,” sold or delivered to any licensed reseller or bulk
user that does not own or operate a motor vehicle propelled by liquified
petroleum gas or maintain storage facilities for resale or delivery of such
fuel for highway consumption;
7. Dyed diesel fuel used for purposes other than to propel highway vehicles.
As used in this section, “exclusive use” shall be construed to exclude the use of fuel by any person, whether operating under contract or not, if the original purchase by such person from a supplier would have rendered the supplier liable for the payment of fuel taxes under the laws of this Commonwealth.
§ 58.1-2119. Reports; payment of tax.
A. On or before the last day of each calendar month, each supplier of liquid
fuel and each aviation consumer shall render to the Commissioner a statement,
on forms prepared and furnished by the Commissioner, which shall show: (i)
the quantity of
Each supplier and aviation consumer of
B. At the time of rendering such report the supplier and aviation consumer shall pay to the Commissioner the tax herein levied during the preceding calendar month.
§ 58.1-2122. Refund of tax on fuels.
Any person other than a person to whom § 58.1-2124 applies, who pays the tax
at the rate of sixteen cents per gallon on the purchase of any
1. Such fuel is used (i) for purposes other than to propel highway
2. Such fuel has been lost by accident, except through personal negligence or theft;
3. Such fuel was used by any county or city school board or any private, nonprofit nonsectarian school contracting with a private carrier to transport children to and from public schools or any private schools or any private nonsectarian school; or
4. Such fuel was (i) sold to any corporation, partnership or other entity
performing transportation under contract or lease with any transportation
district and (ii) used in a
The total refunds allowed to any one applicant in all cases pursuant to clause (ii) of subdivision 1 of this section with respect to fuel which is subject to the tax imposed by this chapter shall not exceed the sum of $2,000 in any fiscal year.
Application for refund shall show the purpose for which the fuel was used, and shall be accompanied by the invoice covering the sale of the fuel to such person. In the event an assessment is rendered for failure to report and pay any tax imposed by § 58.1-2116 and such fuel has been used for nonhighway purposes by the consumer, application for refund may be filed with the Commissioner by the consumer within twelve months from the date such assessment is paid and shall be accompanied by invoices covering the sale of the fuel and the billing of the tax to such person.
§ 58.1-2123. Refund where taxpaid fuels transported to another state, district or country for sale or use.
Any person who purchases
The application for a refund shall set forth the fact that such
§ 58.1-2124. Refund for agricultural use.
Any person who at any one time buys
1. Fifteen and one-half cents of the tax paid on each gallon of fuel so used shall be refunded to the claimant.
2. One-half cent of the tax paid on each gallon of fuel so used shall be paid by the Commissioner into the state treasury to the credit of the Virginia Agricultural Foundation Fund as provided by § 58.1-2146.
§ 58.1-2124.1. Refund for solid waste compacting highway vehicles and ready-mix concrete highway vehicles.
Any person who purchases
§ 58.1-2126. Refund to certain bus lines, taxicab services and common carriers.
Any person who purchases diesel fuel or clean special
§ 58.1-2128. Time for filing and payment.
However, the report or payment of the tax for May shall not be deemed timely
filed unless it is received by the Commissioner by the last business day the
A postmark shall mean the official cancellation mark of the United States Postal Service or other postal or other delivery service.
§ 58.1-2128.1. General application of Article 4.
The provisions of this article shall apply to
§ 58.1-2129. Collection allowance.
As compensation for accounting for
§ 58.1-2131.2. Period of limitations.
The taxes imposed by this chapter shall be assessed within three years from the date on which such taxes became due and payable. In the case of a false or fraudulent return filed with intent to evade payment of the taxes imposed by this chapter, or a failure to file a return, the taxes may be assessed, or a proceeding in court for the collection of such taxes may be begun without assessment, at any time. The Commissioner shall not examine any person's records beyond the three-year period of limitations unless he has reasonable evidence of fraud, or reasonable cause to believe that such person was required by law to file a return and failed to do so.
§ 58.1-2131.3. Waiver of time limitation on assessment of taxes.
If, prior to the expiration of the time prescribed for assessment of any tax imposed by this chapter and assessable by the Department, both the Commissioner and the taxpayer have consented in writing to the assessment of the tax after such time, the tax may be assessed any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
§ 58.1-2133. Retention of records by licensees, users and purchasers for resale.
Each licensee shall maintain and keep, for a period of three years, all records pertaining to fuel received, produced, manufactured, refined, compounded, used, sold or delivered within the Commonwealth by such licensee, together with invoices, bills of lading and other pertinent records and papers, as may be required by the Commissioner for the reasonable administration of this chapter.
Each user of diesel fuel, aviation special fuel, and clean special
fuels shall keep and maintain appropriate records of all
Every person purchasing motor fuel taxable under this chapter from a dealer for the purpose of resale shall maintain and keep for a period of three years a record of motor fuel received, the amount of tax paid to the dealer as part of the purchase price, together with delivery tickets, invoices and bills of lading, and such other records as the Commissioner shall require.
§ 58.1-2134. Inspection of records, etc.
A. The Commissioner or any deputy, employee or agent authorized by him may examine, during the usual business hours of the day, records, books, papers, storage tanks and any other equipment of any licensee, purchaser, refiner, terminal operator, fuel dealer or distributor, or common carrier for the purpose of ascertaining the quantity of fuel received, produced, manufactured, refined, compounded, used, sold, shipped or delivered, to verify the truth and accuracy of any statement, report or return or to ascertain whether or not the tax imposed by this chapter has been paid.
B. If the licensee is open for business during hours of the day which might not be considered usual business hours for the Department, the Commissioner may examine the licensee's books and records during the licensee's normal business hours, which shall be those hours when the licensee is open for business at any of its places of business or business locations. If the licensee does not maintain its books and records on the premises, the Commissioner or any deputy, employee or agent authorized by him may inspect such books and records where they are maintained, irrespective of the working hours at such location, as long as one of the licensee's places of business maintains hours at the time of day during which the Commissioner asserts such inspection powers.
§ 58.1-2135. Requirement of license; application; bond.
A. Every dealer,
1. The name under which the applicant will transact business within the Commonwealth;
2. The location, with street number address, of the applicant's principal office or place of business within the Commonwealth; and
3. The name and complete residence address of the owner or the names and addresses of the partners, or principal officers, if such applicant is a partnership, corporation or association. If the applicant is a corporation organized under the laws of another state, territory or country, such applicant shall also file with the application a certified copy of the certificate or license issued by the State Corporation Commission showing that the corporation is authorized to transact business in the Commonwealth.
B. No license shall be issued to an exporter unless the exporter demonstrates that he is also licensed in the states to which he exports.
C. The Commissioner may license any person either as a supplier, reseller,
bulk user, exporter
D. A background investigation, to include a National Criminal Records search
and a Virginia Criminal History Records search,
E. No license shall be issued upon any application unless accompanied by such bond or other security as provided by § 58.1-2136. The bond or other security shall be in an amount to be determined upon investigation by the Commissioner to be approximately three times the anticipated average monthly fuel tax to become due by the applicant during the next succeeding three calendar months. In no event shall the amount of any bond or other security filed in lieu of such bond be less than $2,000. In case of a jobber who incurs no tax liability to the Division, the amount of bond or other security shall be $1,000.
On and after July 1, 1993, applicants for licenses shall be subject to a maximum bond or other security of not more than $150,000 for each license issued. Licensees holding a license prior to July 1, 1993, shall be subject to a maximum bond or other security of not more than $100,000 for each license issued. Licensees on and after July 1, 1993, may be required by the Commissioner to increase their bond or other security to $150,000 if the Commissioner, in his sole discretion, determines that (i) their prior payment or reporting history is unsatisfactory or (ii) their financial stability is questionable.
The Commissioner, in his discretion, may reduce the amount of the required bonds as long as he is satisfied that payment of the tax collected on behalf of the Commonwealth will not be jeopardized. Among the factors the Commissioner may consider in making such a determination shall include, but not be limited to, the licensee's prior satisfactory payment record and continuing financial stability.
F. The bond shall be in such form as may be approved by the Commissioner and shall be payable to the Commonwealth. Such bond shall be executed by a surety company duly licensed to do business under the laws of the Commonwealth, approved by the Bureau of Insurance of the State Corporation Commission and signed by a resident Virginia agent of the surety. The bond or other security as provided for in § 58.1-2136 shall be conditioned upon the prompt filing of true reports and the payment by such dealer, supplier or aviation consumer to the Commissioner of all fuel taxes which are now or which may hereafter be levied or imposed by the Commonwealth, together with all penalties, and interest thereon, and generally upon faithful compliance with the provisions of this chapter. Such bond shall be so written that, upon timely payment of the premium, it shall continue in force from year to year unless sooner terminated as provided by law.
G. Except as provided in § 58.1-2137 upon receipt of an application in proper form, and upon acceptance and approval of the bond or other security, the Commissioner shall issue to the applicant a license certificate to transact business in the Commonwealth, subject to cancellation of such license as provided by law. However, any licensee shall forthwith furnish the Commissioner information of any changes in the original application.
H. The license certificate so issued by the Commissioner shall not be assignable, and shall be valid only for the applicant in whose name it is issued. It shall be conspicuously displayed at all times in the principal place of business of the licensee in the Commonwealth.
I. The Commissioner shall keep and file all applications and bonds with an
alphabetical index thereof, together with a record of all licensees. The
Commissioner shall, upon request, furnish each
§ 58.1-2142. Prohibited acts, generally; criminal penalties.
It shall be unlawful for any person to:
1. Fail or refuse to pay the tax imposed by this chapter;
2. Engage in business in the Commonwealth without being the holder of a valid license to engage in such business, if such license is required pursuant to § 58.1-2135;
3. Fail to make any of the reports required by this chapter;
4. Make any false statement in any application, report, ticket, invoice or statement required by this chapter;
5. Refuse to permit the Commissioner or any deputy to examine records as provided by this chapter;
6. Fail to keep proper records of quantities of fuel received, produced, refined, manufactured, compounded, sold, used or delivered in the Commonwealth as required by this chapter;
7. Make any false statement in connection with an application for the refund of any moneys or taxes provided in this chapter or on any delivery ticket or invoice as to the quantity of fuel delivered, sold or used;
8. Use, deliver, or sell any aviation fuel for use or intended for use
9. Deliver fuel from a tank truck to the fuel tank of a
10. Maintain any false or forged records, or fail to maintain records, as required by this chapter;
11. Remit false
12. Interfere with or refuse to permit seizures authorized under § 58.1-2143;
14. Deliver or offer for sale or use within the Commonwealth any fuel which has been imported by a person other than a licensed dealer or supplier or on which the tax levied pursuant to this chapter has not been assumed or paid by a licensed dealer or supplier. Each delivery or sale in violation of this paragraph shall be deemed a separate offense under this section; or
15. Equip any vehicle to which a tank for the transportation of liquid fuel for sale or delivery is attached, with any device to connect the transportation tank to the fuel line of the vehicle from which fuel may be supplied for use by such vehicle.
Any person convicted under this section shall be guilty of a Class 1 misdemeanor.
In addition to any other penalty imposed, the defendant shall be required to pay all taxes and penalties due the Commonwealth under this chapter and pay to the Commonwealth any other moneys wrongfully withheld or illegally refunded.
§ 58.1-2142.1. Willful commission of prohibited acts; criminal penalties.
If any person willfully commits any of the following acts with the intent to evade the Commonwealth's fuels tax laws, or to assist any other person in such evasion efforts, he shall be guilty of a Class 6 felony:
1. Importing or causing to be imported into the Commonwealth any fuel unless:
(i) such person is the holder of a valid license, (ii) the liability for the
tax imposed under this chapter has been assumed by a licensee holding a valid
license, or (iii) such person is a common carrier operating under the
authority of the State Corporation Commission. The provisions of this
subdivision shall not apply to the importation of fuel into the Commonwealth
in the fuel supply tank of a
2. Altering, manipulating, replacing, or in any other manner tampering or interfering with, or causing to be altered, manipulated, replaced, tampered or interfered with, a totalizer attached to fuel pumps to measure the dispensing of fuel for the purpose of evading or circumventing the fuels tax laws of this chapter.
3. Not paying fuels taxes and diverting such tax proceeds for other purposes.
4. Converting fuel tax proceeds by a licensee, or its agents or representatives, for his or their own use, or attempting to convert such fuel tax proceeds with the intent to defraud the Commonwealth.
5. Illegally collecting fuel taxes when not authorized or licensed by the Commissioner to do so.
6. Illegally importing fuel into the Commonwealth.
7. Conspiring with any other person or persons to engage in an act, plan, or scheme to defraud the Commonwealth of fuels tax proceeds.
8. Using any dyed diesel fuel for a use that the user knows or has reason to know is a taxable use of the fuel, or selling any dyed diesel fuel to a person who the seller knows or has reason to know will use the fuel for a taxable use.
9. Altering or attempting to alter the strength or composition of any dye or marker in any dyed diesel fuel intended to be used for a taxable purpose.
§ 58.1-2144. Civil penalties.
A. A penalty, as provided in subsection C of this section, shall be added to the tax under this chapter when any licensee:
1. Fails to submit the monthly report required by this chapter on a timely basis; or
3. Fails to pay to the Commissioner on a timely basis the amount of taxes due under this chapter.
B. A penalty, as provided in subsection C of this section, shall be added to
the tax due under this chapter when any
1. Acquires fuel for resale or use for the propulsion of an aircraft or a
2. Fails to report as required by § 58.1-2120; or
3. Fails to pay the tax imposed by this chapter on a timely basis.
C. The penalty for the violations listed in subsections A and B of this section shall be equal to ten percent of the tax due or ten dollars, whichever is greater. After imposition of the penalty the amount of the tax and penalty shall bear interest at the rate of one percent per month until the tax and penalty are paid. The Commissioner shall have the power to reduce or waive any penalties provided in this section if the violation is due to reasonable or good cause shown to the satisfaction of the Commissioner.
The ten-dollar minimum penalty levied herein shall be applied only in cases where the monthly report or payment of the tax is not received within the time limit prescribed in this chapter and shall not be considered for audit purposes.
D. The Commissioner may allow overpayments of the motor fuel tax imposed by
Article 2 (§ 58.1-2104 et seq.) of this chapter to be considered as credits
§ 58.1-2144.1. Civil penalty for improper sale for use, or use of, dyed diesel fuel.
A. If any person commits any of the following acts, he shall be subject to the civil penalty specified in subsection B:
1. Selling or storing any dyed diesel fuel for any use which the person selling or storing knows, or has reason to know, is a taxable use of the fuel; or
2. Willfully altering or attempting to alter the strength or composition of any dye or marker in any dyed diesel fuel intended to be used for a taxable purpose.
B. The amount of penalty for each violation shall be the greater of $1,000 or $10 per gallon of dyed diesel fuel, based on the maximum storage capacity of the storage tank. Any penalty imposed by this section shall be payable by the person committing such act, shall be in addition to the tax due, and shall be collectible by the Commissioner in the same manner as if it were a part of the tax imposed.
§ 58.1-2145. Civil penalty for jobbers' failure to file report.
Notwithstanding subsections B and C of § 58.1-2144, when any bulk user,
jobber, reseller, or exporter
§ 58.1-2145.1. Administrative authority; civil penalty.
A. Employees of the Department designated by the Commissioner, upon presenting appropriate credentials and a written notice to the owner, operator, or agent in charge, are authorized to enter any place and to conduct inspections in accordance with this section. Inspections shall be performed in a reasonable manner and at times that are reasonable under the circumstances, taking into consideration the normal business hours of the place to be inspected.
B. Inspections may be conducted at any place where taxable fuel or fuel dyes or markers are, or may be, produced, altered, or stored, or at any inspection site where evidence of production, alteration, or storage may be discovered. These places may include, but shall not be limited to, the following: (i) any terminal, (ii) any fuel storage facility that is not a terminal, (iii) any retail fuel facility, and (iv) any designated inspection site. A “designated inspection site” means any state highway inspection station, weigh station, agricultural inspection station, mobile station, or other location designated by the Commissioner to be used as a fuel inspection site.
C. Employees of the Department may physically inspect, examine, and otherwise search any tank, reservoir, or other container that can or may be used for the production, storage, or transportation of fuel, fuel dyes or markers. Inspection may also be made of any equipment used for, or in connection with, the production, storage, or transportation of fuel, fuel dyes or markers, including equipment used for the dyeing or marking of fuel. Such employees may also inspect the books and records kept to determine fuel tax liability under this chapter.
D. Employees of the Department may, on the premises or at a designated inspection site, take and remove samples of fuel in such reasonable quantities as are necessary to determine its composition.
E. Any person refusing to allow an inspection authorized by this section shall be subject to a civil penalty of $1,000 for each refusal. This penalty shall be imposed in addition to any other penalty or tax that may be imposed as provided in this chapter against such person or any other person liable for the tax under this chapter. All penalties imposed pursuant to this section shall be assessed and collected by the Commissioner in the same manner as if they were part of the tax imposed.
§ 58.1-2146. Disposition of tax revenues.
A. Unless otherwise provided in this section all taxes and fees collected by
the Commissioner pursuant to this chapter, less a reasonable amount to be
allocated for refunds, shall be promptly paid into the state treasury. Except
as provided in § 33.1-23.03:1, no portion of the revenue derived from taxes
collected pursuant to §§ 58.1-2701, 58.1-2105 and 58.1-2116, and remaining
after authorized refunds for nonhighway use of
Revenues collected under this chapter may be also used for (i) making a contribution towards the construction, reconstruction or maintenance of streets in cities and towns of such sums as may be provided by law; and (ii) expenditures for the operation and maintenance of the Department of Transportation and the Department of Motor Vehicles as may be provided by law.
The Governor is hereby authorized to transfer out of such fund an amount necessary for the purpose of inspection of gasoline and motor grease measuring and distributing equipment, and for inspection and analysis of gasoline for purity.
B. The tax collected on each gallon of aviation fuel sold and delivered or used in the Commonwealth, less refunds, shall be paid into a special fund of the state treasury. Proceeds of the special fund shall be disbursed upon order of the Department of Aviation, on warrants of the Comptroller, to defray the cost of the administration of the laws of this Commonwealth relating to aviation, for the construction, maintenance and improvement of airports and landing fields to which the public now has or which it is proposed shall have access, and for the promotion of aviation in the interest of operators and the public generally.
C. One-half cent of the tax collected on each gallon of fuel on which the
refund has been paid at the rate of seventeen cents per gallon, or in the
D. One and one-half cents of the tax collected on each gallon of motor fuel used to propel a commercial boat or ship upon which a refund has been paid shall be paid to the credit of the game protection fund of the state treasury to be made available to the Board of Game and Inland Fisheries until expended for the purposes provided generally in § 62.1-168 (c), including acquisition, construction, improvement and maintenance of public boating access areas on the public waters of the Commonwealth and for other activities and purposes of direct benefit and interest to the boating public and for no other purpose. However, one and one-half cents per gallon on fuel used by commercial fishing, oystering, clamming, and crabbing boats shall be paid to the Department of Transportation to be used for the construction, repair, improvement and maintenance of the public docks of the Commonwealth used by said commercial boats. Any expenditures for the acquisition, construction, improvement and maintenance of the public docks shall be made according to a plan developed by the Virginia Marine Resources Commission.
From the tax collected pursuant to the provisions of this chapter from the sales of motor fuels used for the propelling of boats or ships, after deduction for lawful refunds, there shall be paid into the state treasury for use by the Marine Resources Commission, the Virginia Soil and Water Conservation Board, the State Water Control Board, and the Commonwealth Transportation Board for the purpose of (i) improving the public docks as specified in this section, (ii) improving commercial and sports fisheries in Virginia's tidal waters, (iii) environmental improvements including, without limitation, fisheries management and habitat enhancement in the Chesapeake and its tributaries, and (iv) for the purposes set forth in § 33.1-223 a sum as established by the General Assembly.
§ 59.1-21.16:2. Operation of retail outlet by refiner; apportionment of fuels during periods of shortage; rules and regulations.
A. After July 1, 1979, no refiner of petroleum products shall operate any major brand, secondary brand, or unbranded retail outlet in the Commonwealth of Virginia with company personnel, a parent company, or under a contract with any person, firm, or corporation, managing a service station on a fee arrangement with the refiner; however, such refiner may operate such retail outlet with the aforesaid personnel, parent, person, firm, or corporation if such outlet is located not less than one and one-half miles, as measured by the most direct surface transportation route, from the nearest retail outlet operated by any franchised dealer; and provided, that once in operation, no refiner shall be required to change or cease operation of any retail outlet by the provisions of this section.
During the period July 1, 1990, through June 30, 1991, no refiner may construct and operate with company personnel as defined in this section any new major brand, secondary brand, or unbranded retail outlet in the Commonwealth of Virginia, except on any property purchased or under option to purchase by March 1, 1990.
B. Every refiner of petroleum products shall apportion all gasoline and
C. No new lease, lease renewal, new supply contract, or new supply contract renewal under this chapter shall impose purchase or sales quotas.
D. The Commissioner of Agriculture and Consumer Services shall adopt regulations (i) defining the circumstances under which a refiner may temporarily operate a previously dealer-operated retail outlet; (ii) providing for the rebuilding or relocation of retail outlets which were producer or refiner operated on July 1, 1979; (iii) requiring each refiner to file a list of retail outlets operated by such refiner and to keep such listing current; (iv) requiring each franchise dealer to file a listing of any retail outlets operated by such franchise dealer, and to keep such list current.
E. The provisions of this section shall not be applicable to retail outlets operated by producers or refiners on July 1, 1979.
§ 62.1-44.34:13. Levy of fee for fund maintenance.
A. In order to generate revenue for the Fund, there shall be imposed a fee
of one-fifth of one cent on each gallon of the following fuels sold and
delivered or used in the Commonwealth: motor fuel, including aviation motor
1. Motor fuel,
2. Aviation special fuel sold, delivered or used;
3. Natural gas or liquified petroleum gases imported, sold or used in the Commonwealth;
4. Motor fuel sold to a limited dealer or another duly licensed motor fuel dealer; or
Any dealer or supplier, as defined in § 58.1-2101, or any other person licensed with the Department of Motor Vehicles to sell such fuels in the Commonwealth, who collects the fee imposed by this article shall be liable for payment thereof to the Department of Motor Vehicles. A limited dealer shall pay the fee on the number of gallons purchased, invoiced and delivered by the supplying dealer.
B. The fee shall be remitted to the Department of Motor Vehicles in the same manner and subject to the same provisions specified in Article 4 (§ 58.1-2128 et seq.) of Chapter 21 of Title 58.1, except § 58.1-2129 shall not apply.
C. Any person who purchases motor fuel, aviation motor fuel,
D. To maintain the Fund at an appropriate operating level, the Commissioner of the Department of Motor Vehicles shall increase the fee to three-fifths of one cent when notified by the Comptroller that the fund has been or is likely in the near future to be reduced below three million dollars, exclusive of fees collected pursuant to § 62.1-44.34:21, and he shall reinstitute the one-fifth of one cent fee when the Comptroller notifies him that the Fund has been restored to six million dollars exclusive of fees collected pursuant to § 62.1-44.34:21.
E. The Comptroller shall report to the Commissioner quarterly regarding the Fund expenditures and Fund total for the preceding quarter.
F. Revenues from such fees, less refunds and administrative expenses, shall be deposited in the Fund and used for the purposes set forth in this article.
3. That the provisions of this act may result in a net increase in periods of imprisonment in state correctional facilities. Pursuant to § 30-19.1:4, the estimated amount of the necessary appropriation is $0.