Tax Type
Retail Sales and Use Tax
Description
VIRGINIA MOTOR VEHICLE FUEL SALES TAX REGULATIONS
Topic
Reports
Date Issued
03-01-1984
VIRGINIA MOTOR VEHICLE FUEL
SALES TAX REGULATIONS
SALES TAX REGULATIONS
VIRGINIA DEPARTMENT OF TAXATION
March 1, 1984
March 1, 1984
INTRODUCTION
These regulations for the Virginia Motor Vehicle Fuel Sales Tax are published by the authority granted the State Tax Commissioner under Virginia Code § 58-48.6 (§ 58.1-203 effective January 1, 1985) and are subject to amendment, revision and supplemental regulations as required or appropriate.
W. H. Forst
State Tax Commissioner
Virginia Department of Taxation
P.O. Box 6-L
Richmond, Virginia 23282
MOTOR VEHICLE FUEL SALES TAX REGULATIONS
SUBJECT: Motor Vehicle Fuel Sales Tax
EFFECTIVE DATE: March 1, 1984
EXPIRATION DATE: N/A
SUPERSEDES: Motor Vehicle Fuel Sales Tax Regulations, published June 1, 1980
REFERENCES:
1. § 15.1-1344, Code of Virginia
2. § 58-686 et. seq., Code of Virginia
3. § 58-730.5 et. seq., Code of Virginia
4. § 58-731 et. seq., Code of Virginia
AUTHORITY:
1. § 58-730.5, Code of Virginia
2. § 58-48.6, Code of Virginia
SCOPE:
Applicable to all persons making retail sales of fuels within every city or county which is a member of any transportation district in which a rapid heavy rail and bus commuter mass transportation system is owned, operated, or controlled by an agency or a commission as defined in Virginia Code § 15.1-1344. As of January 1, 1983 the only qualifying transportation district is the Northern Virginia Transportation Commission, comprised of the cities of Alexandria, Fairfax, and Falls Church and the counties of Arlington and Fairfax.
PURPOSE:
The purpose of these regulations is to set forth the policies and procedures applicable to the motor vehicle fuel sales tax.
§ 1. Administrative rulings. A dealer may appeal in writing to the State Tax Commissioner for a ruling when there is a question about the application of the tax to a specific situation. The dealer must provide the Commissioner with all the facts: the names of individuals, firms or corporations involved; type, location and value of property; and any other relevant information. The dealer may argue for the interpretation of the law most favorable to him.
A dealer who acts on a written ruling that is later revoked or set aside by the courts or the Commissioner will have acted in good faith. A written ruling, however, becomes invalid if later changed by an amendment to the law, a court decision, or a rule or regulation issued by the Commissioner.
§ 2. Agriculture. The tax does not apply to motor vehicle fuel sold to farmers for use in farm machinery or motor vehicles, licensed or non-licensed, used in agricultural production for market if it is to be so used at the time of purchase. The tax also does not apply to harvesters of forest products who use the motor vehicle fuel in commercial tree farming. Any fuel not used in agricultural production is subject to the tax at the time of purchase.
§ 3. Airlines operating in intrastate, interstate or foreign commerce. This tax does not apply to motor vehicle fuel sold to an airline and used directly in the rendition of its common carrier service in interstate, intrastate or foreign commerce operations providing "scheduled air service". "Scheduled air service" as defined in Virginia Code § 58-685.31, means service provided by a single air carrier consisting of regularly scheduled flights to one or more Virginia airports at least five days per week.
§ 4. Bad Checks. Any person who tenders a bad check and fails to pay the amount of tax due the state within five days after the Department of Taxation has given written notice by registered or certified mail or in person is guilty of a misdemeanor. The person will also be subject to a penalty of $10.00 and the civil penalties set out in § 28.
A bond may be required of any person who has tendered a bad check.
§ 5. Bad debts. On any return filed the dealer may obtain credit for the amount of tax previously reported and paid on accounts found to be worthless during the period covered by the current return. In computing the credit, prior payments to the dealer on each debt must be allocated to the sales price, the tax and other nontaxable charges based on the percentage that those charges represent to the total debt originally owed. The credit may not exceed the amount of sales price that the dealer is unable to collect. If any part of the sales price for which a credit was taken is paid to the dealer, the appropriate tax must be included in the next return filed.
§ 6. Boats. The tax applies at the time of purchase to motor vehicle fuel for use in a boat. Marine fuel that is subject to the fuel tax imposed under Chapters 13 and 14 of the Code of Virginia is also subject to this tax. As to a refund, see § 33.
§ 7. Bonds. The Department of Taxation may require any person subject to the tax to file a cash or surety bond to secure the payment of any tax, penalty, or interest due or which may become due.
§ 8. Brackets for collection of the tax. The rate of the tax is 2 percent on the sales price of motor vehicle fuel, which includes the Federal tax and state tax on motor fuels. The rate increase scheduled to go into effect July 1, 1982 was repealed. The tax must be included in the unit measure of fuel when retail sales of fuels are made through a pump and the bracket system below must be used for determining the proper amount of tax to be added to the sales price of each unit. The bracket system does not relieve the dealer from the liability to pay an amount equal to 2 percent of his gross taxable sales.
Price Per Unit Price Per Unit
Before Sales Tax Tax Before Sales Tax Tax
$.000 - .024 $ .000 $1.475 - 1.524 $ .030
.025 - .074 .001 1.525 - 1.574 .031
.075 - .124 .002 1.575 - 1.624 .032
.125 - .174 .003 1.625 - 1.674 .033
.175 - .224 .004 1.675 - 1.724 .034
.225 - .274 .005 1.725 - 1.774 .035
.275 - .324 .006 1.775 - 1.824 .036
.325 - .374 .007 1.825 - 1.874 .037
.375 - .424 .008 1.875 - 1.924 .038
.425 - .474 .009 1.925 - 1.974 .039
.475 - .524 .010 1.975- 2.024 .040
.525 - .574 .011 2.025 -2.074 .041
.575 - .624 .012 2.075 - 2.124 .042
.625 - .674 .013 2.125 - 2.174 .043
.675 - .724 .014 2.175 - 2.224 .044
.725 - .774 .015 2.225 - 2.274 .045
.775 - .824 .016 2.275 - 2.324 .046
.825 - .874 .017 2.325 - 2.374 .047
.875 - .924 .018 2.375 - 2.424 .048
.925 - .974 .019 2.425 - 2.474 .049
.975 - 1.024 .020 2.475 - 2.524 .050
1.025 - 1.074 .021 2.525 - 2.574 .051
1.075 - 1.124 .022 2.575 - 2.624 .052
1.125 - 1.174 .023 2.625 - 2.674 .053
1.175 - 1.224 .024 2.675 - 2.724 .054
1.225 - 1.274 .025 2.725 - 2.774 .055
1.275 - 1.324 .026 2.775 - 2.824 .056
1.325 - 1.374 .027 2.825 - 2.874 .057
1.375 - 1.424 .028 2.875 - 2.924 .058
1.425 - 1.474 .029 2.925 - 2.974 .059
An example of the use of the bracket for determining the proper amount of tax to be added to the unit sales. price of fuel is as follows:
Unit Cost of Fuels from Refiner
Including the Federal Tax and State
Tax on Motor Fuels $1.062
Mark-up $ .153
Sales Price Before Tax $1.215
Amount of Tax From Bracket $ .024
Price Per Unit Including 2 percent tax $1.239
The tax on retail sales of fuels that are not made through a pump is computed at a straight 2 percent. One-half cent or more is treated as one cent. (See § 45 regarding wholesalers.)
§ 8.1. Cash Discounts. Any person making retail sales of fuel who allows a discount against the pump price shall compute the tax on the discounted price. If the tax is not included in the pump price, the tax shall be charged on the discounted price per unit using the brackets for collection set forth in § 8. If the tax is included in the pump price, no tax calculation will be made at the time of sale. In computing tax due, the dealer shall subtract cash discounts from gross fuel sales and divide the result by 1.02 to determine the base for computing the tax. This base shall be multiplied by .02 to determine the tax due.
§ 9. Certificates of exemption. All sales are subject to the tax until the contrary is established. The burden of proving that the tax does not apply rests with the dealer unless he takes, in good faith from the purchaser, a certificate of exemption indicating that the fuel is exempt under the law. The certificate will remain in effect except upon notice from the Department of Taxation that it is no longer acceptable. However, a certificate that is incomplete, invalid, infirm or inconsistent on its face is never acceptable, either before or after notice.
Certificates of exemption in the various categories will be furnished to dealers on request. Each certificate explains its use, and may be reproduced by the dealer for use on purchase orders, sales slips or other documents relating to the transaction.
Reasonable care and judgment must be exercised by all concerned to prevent the giving or receiving of false, fraudulent or bad faith exemption certificates. An exemption certificate cannot be used to make a tax free purchase of fuel not covered by the exact wording of the certificate.
§ 10. Certificate of registration. (a) Generally. Every person making retail sales of motor vehicle fuel whereby delivery is made within a transportation district is required to file an application for a Certificate of Registration with the Department of Taxation for collection and payment of the sales tax. Appropriate application forms are available from the department. A separate application for a Certificate of Registration is required for each place of business. (Place of business is defined in § 30.)
Any person who purchases motor vehicle fuel for resale and withdraws any fuel from an inventory located within a transportation district for use or consumption is required to register for payment of the tax on such withdrawals.
Any person who gives an exemption certificate for the purchase of motor vehicle fuel and makes a taxable use of any portion of the fuel taken from a storage facility located within a transportation district is required to register for payment of the tax on the portion of the fuel that is used in a taxable manner.
(b) Issuance of Certificate of Registration. The Department of Taxation will review and approve an application for registration and issue the dealer an official Certificate of Registration for the specific place of business noted in the application. The Certificate of Registration is not transferable and is valid only for the designated dealer and place of business. It must always be displayed conspicuously at the appropriate place of business.
If a dealer ceases to conduct his business at the place indicated on the Certificate of Registration, the certificate immediately expires. The dealer is required to notify the Department of Taxation in writing within 30 days and return the Certificate of Registration. However, if the dealer wants to relocate his place of business, he must inform the department in writing and return the certificate so a revised certificate may be issued. For successor upon sale of business, see § 36; for trustees, etc., see § 42.
(c) Changes in ownership or corporate structure.
(1) If an individual or a partnership changes to a corporation, the corporation must apply for and obtain a Certificate of Registration.
(2) If a corporation changes to a sole proprietorship or to a partnership, the sole proprietorship or the partnership must apply for and obtain a Certificate of Registration.
(3) If a partnership adds or drops a partner and the partnership retains the same name and at least one of the original partners, the new partnership is only required to inform the Department of Taxation of the names of all partners under the change. If only the name of the partnership changes, a revised Certificate of Registration will be issued. If none of the partners in the old partnership remains a partner in the new partnership, the new partnership must apply for and obtain a Certificate of Registration.
(4) If a partnership becomes a sole proprietorship, the proprietor must apply for and obtain a Certificate of Registration.
(5) If a sole proprietorship becomes a partnership, the partnership must apply for and obtain a Certificate of Registration.
(6) If a corporation changes its name without change in corporate structure, a revised Certificate of Registration may be issued.
(7) If a subsidiary corporation which is a registered dealer consolidates with its parent corporation which is not a registered dealer, and the parent corporation continues the place of business in the parent corporation's name, the parent corporation must apply for and obtain a Certificate of Registration.
(8) If a parent corporation which is a registered dealer forms a subsidiary corporation, and transfers to the subsidiary corporation a place of business from which motor vehicle fuel is delivered into a transportation district, the subsidiary corporation must apply for and obtain a Certificate of Registration.
(9) If corporation "A" which is a registered dealer merges with corporation "B" which is not a registered dealer, and corporation "B" (the surviving corporation) continues the place of business in "B's" name, corporation "B" must apply for and obtain a Certificate of Registration.
(10) If corporation "A" and corporation "B" are both registered dealers, and they form corporation "C", and both "A" and "B" merge with corporation "C", which continues the place or places of business, corporation "C" must apply for and obtain a Certificate of Registration for each place of business.
(11) If corporation "A" and corporation "B" are both registered dealers, and they merge into one corporation under a name different from the name of corporation "A" and different from the name of corporation "B", the merged corporation must apply for and obtain a Certificate of Registration for each place of business.
§ 11. Collection of tax by dealers from their customers. (a) Generally. The tax must be added to the sales price of fuel and paid to the state by the dealer. Thereafter, the tax is a debt from the purchaser to the dealer until paid and is recoverable at law in the same manner as other debts.
(b) Advertising absorption of tax by dealers is prohibited. It is a misdemeanor for a dealer to advertise or hold out to the public in any manner, directly or indirectly, that he will absorb all or any part of the tax, or that he will relieve the purchaser of the payment of all or any part of the tax except as authorized by the bracket system in § 8.
Erroneous collection of tax on nontaxable transactions: Any dealer collecting the tax on non-taxable transactions must transmit to the Department of Taxation such erroneously or illegally collected tax unless he can show that the tax has been refunded to the purchaser or credited to the purchaser's account.
§ 12. Commercial watermen. The tax does not apply to motor vehicle fuel sold to a commercial waterman to operate machinery used in extracting fish, bivalves or crustaceans from water for commercial purposes.
Motor vehicle fuel for use in a boat is taxable at the time of purchase; however, for refunds of tax on fuel for non-highway use see § 33.
§ 12.1. Common carriers. The tax does not apply to motor vehicle fuel sold to a common carrier for direct use in a common carrier operation.
§ 13. Contract carriers. The tax applies to all retail sales of motor vehicle fuel to a contract carrier whereby delivery of such fuel is made within a transportation district. As to refunds for non-highway use see § 33.
§ 14. Contractors. The tax applies to motor vehicle fuel sold to real estate and highway construction contractors. If a contractor is licensed by the Department of Motor Vehicles as a supplier, he may purchase all fuel tax-exempt. However, a supplier must report all fuel used for on-highway purposes and pay the tax thereon. As to refund for non-highway use, see § 33.
§ 15. Credit sales. Any dealer making charge or credit card sales of fuel must report the total selling price and pay the applicable tax for the taxable period in which the customer takes delivery of the fuel. For example, if a customer takes delivery of fuel in July and presents a credit card as payment, the dealer must report and pay the tax on the July return even though reimbursement from the credit card company is received in August.
§ 16. Dealer defined. The term dealer includes every person who:
(a) Sells motor vehicle fuel at retail, or who offers motor vehicle fuel for sale at retail, or who has motor vehicle fuel in his possession for sale at retail whereby delivery of the motor vehicle fuel is made within a transportation district.
(b) Has sold at retail motor vehicle fuel whereby delivery was made within a transportation district.
(c) As a representative, agent, or solicitor, of an out-of-state principal, solicits, receives and accepts orders from persons in this State for future delivery of motor vehicle fuel within a transportation district and whose principal refuses to register as a dealer.
(d) Withdraws motor vehicle fuel from a resale inventory located within a transportation district for use or consumption. (See § 44.)
(e) Gives an exemption certificate for the purchase of motor vehicle fuel and makes a taxable use of any portion of the fuel taken from a storage facility located within a transportation district.
NOTE: A refiner, commission distributor or independent jobber, who sells at wholesale and retail is a retailer as to his retail sales.
§ 17. Extension of time for filing return and paying tax. A dealer may apply in writing to the Department of Taxation for an extension of time for filing a return and paying the tax. The request must be made before the return becomes due and must state the necessity for additional time. An extension may be granted to the end of the calendar month in which the return is due, or for a period not exceeding 30 days. Penalty and interest will not be charged during the period of extension, except that interest will accrue on the tax at the rate prescribed in § 6621 of the Internal Revenue Code where the extension is granted beyond the end of the calendar month in which the return is due. Dealer's compensation will be allowed provided the return is filed and the tax paid before the expiration of the extension. Any dealer who fails to file the return within the extended time and to pay the full amount required will be treated as if no extension had been granted.
§ 18. Federal areas. (a) Military installations: Motor vehicle fuel sold by or through post exchanges, ship stores, ship service stores, commissaries, filing stations, licensed traders, other similar agencies or by any person located on United States military installations is subject to tax.
(b) Washington National Airport: Sales of motor vehicle fuel at Washington National Airport are subject to tax.
§ 19. Governments. (a) The tax does not apply to sales to the United States, this state or political subdivisions of this state if the purchases are pursuant to required official purchase orders to be paid for out of public funds.
(b) The United States Government National credit card and the Commonwealth of Virginia credit card may be used in lieu of a Certificate of Exemption when purchasing fuel from any retailer or distributor in localities subject to this tax.
(As to sales of fuel made within a "federal area" such as on military installations and at Washington National Airport, see § 18.)
§ 20. Imposition of tax. The motor vehicle fuel sales tax is imposed upon all retail sales of motor vehicle fuel whereby delivery is made within a transportation district except when such retail sales are specially exempt from the Virginia Retail Sales and Use Tax Act (§ 58-441.1 et seq.). As to motor vehicle fuel see § 24.
Fuel which is furnished in a vehicle at the time of sale and included in the purchase price for measuring the motor vehicle sales and use tax may be purchased exempt from the tax. Fuel which is used in a taxable manner, such as in a demonstrator vehicle; or a leased vehicle, is subject to the tax. As to rented vehicles, see § 25.
§ 21. Interstate and intrastate sales. The tax applies to all retail sales of motor vehicle fuel in a transportation district regardless of any subsequent use in interstate or intrastate commerce.
The tax does not apply to:
(a) Sales of fuel delivered outside the state or transportation district in the seller's vehicle;
(b) Salts of fuel delivered outside the state or transportation district by an independent trucker hired by the seller;
(c) Sales of fuel delivered by the seller to a common carrier or a licensed contract carrier for transportation outside the state or transportation district;
(d) Purchases for resale and immediate transportation out of this state or a transportation district provided a valid certificate of exemption is secured by the Virginia seller.
§ 22. Manufacturing, processing, refining, mining, converting. The tax does not apply to motor vehicle fuel used directly in manufacturing, processing, refining, mining or converting products for sale or resale. The tax applies when the fuel is used indirectly in production. Fuel used in distribution and administration or indirectly in manufacturing, processing, refining, mining or converting is subject to the tax.
§ 23. Motor vehicle defined. For the purposes of the motor vehicle fuel sales tax, motor vehicle shall mean:
All automotive or self-propelled vehicles, engines or machines, which are operated or propelled by internal combustion of gasoline, distilate or other volatile or inflammable liquid fuels; and all vehicles, engines, machines or mechanical contrivances, which are propelled by internal combustion engines or motors upon which or by which any person or property is or may be transported or drawn upon a public highway but shall not include aircraft.
§ 24. Motor vehicle fuel defined. Motor vehicle fuel subject to the motor vehicle fuel sales tax are those fuels subject to tax under Chapter 13, Motor Fuel Tax (Virginia Code §s 58-686 et seq.) and Chapter 14, Special Fuels Tax Virginia Code §s 58-731 et seq.), except aviation fuel or any type of fuel used in an aircraft, rocket or similar device.
For the purposes of this tax, motor vehicle fuel shall mean:
-
- All products commonly or commercially known, advertised, offered for sale, sold or used as gasoline, including casinghead or natural gasoline, and all other types of additives when mixed or blended into gasoline, regardless of their classification of uses; and all combustible gases and liquid, used or suitable for use in any internal combustion engine or motor for the generation of power to propel motor vehicles on the public highways, except aviation fuel or any type of fuel used in an aircraft, rocket or similar device.
§ 25. Motor vehicle rentals. Persons engaged in the business of leasing or renting motor vehicles must pay the tax on all purchases of motor vehicle fuel for use in such motor vehicles.
§ 26. Nonprofit organizations. The tax applies to motor vehicle fuel purchased for use or consumption by churches, religious, charitable, civic and other nonprofit organizations except as set forth below.
The tax does not apply to purchases of motor vehicle fuel for use or consumption by the following organizations provided they are conducted not for profit: (a) college or other institution of learning; (b) a noncommercial educational telecommunications entity; (c) a hospital; (d) a licensed nursing home; (e) a licensed home for adults; (f) a volunteer fire department or volunteer rescue squad; and (g) a hospital cooperative or hospital corporation organized and operated for the sole purpose of providing services exclusively to a hospital conducted not for profit; (h) a nonprofit museum of fine arts which is located on property owned by a city in Virginia and which receives more than half of its operating budget from appropriations by the city; (i) nonprofit nutrition programs for elderly qualifying under 42 U.S.C. § 3030(e) through 3030(g), as amended, as administered by the Office of Aging of the Commonwealth of Virginia.
§ 27. Out-of-state dealers. Every person outside this state who makes retail sales of motor vehicle fuel for delivery into a transportation district is required to register and to collect and pay the tax. Such dealers must file returns and perform all other duties required of dealers in this state. For certificates of registration see § 10.
§ 28. Penalties and interest. (a) Penalties: A dealer who fails to file a return and pay the full amount of tax by the required due date is subject to a penalty of five percent of the amount of the tax for each 30 days, or fraction thereof, not to exceed 25 percent. In no case will the penalty be less than $10.00, even if no tax is due for the period.
The penalty may be waived if there is good cause for the failure to file and/or pay on time. Requests for waiver of penalty must be made in writing to the Department of Taxation and must include all pertinent facts to support the request.
(b) Interest: Interest at the rate in § 6621 of the Internal Revenue Code of 1954, as amended, accrues on the tax until paid or until an assessment is issued. At the time the assessment is issued, a bill will be sent to the taxpayer for the tax, penalty and interest, which must be paid within 30 days from the date of the bill. If the bill is not paid in full within the 30 day period, interest at the prescribed rate will accrue from the date of assessment until payment is made. Interest cannot be waived. For bad checks, see § 4.
§ 29. "Person" defined. "Person" includes any individual, firm, partnership, cooperative, nonprofit membership corporation, joint venture, association, corporation, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public.
§ 30. Place of business. For determining the place of business from which a retail sale is made, "place of business" means the business location that first takes the purchaser's order for motor vehicle fuel whereby the delivery is made within a transportation district.
P. D. 84-75
The term "place of business" includes, but is not limited to, a store, a sales or other office, a warehouse or any storage facility. As to out-of-State dealers see § 27; as to situs of sale, see § 39.
§ 31. Public service corporations. The tax does not apply to motor vehicle fuel sold to a public service corporation subject to a state franchise or license tax upon gross receipts when the fuel is used directly in the rendition of its public service; nor to motor vehicle fuel sold to a public service corporation engaged in business as a common carrier of property or passengers by motor vehicle when the fuel is used or consumed directly in the rendition of its public service. The tax applies when the fuel is used indirectly in the rendition of the public service. As to fuel purchased by a contract carrier, see § 13.
§ 32. Records and their preservation. Every dealer is required to keep and preserve for three years adequate and complete records necessary to determine the amount of tax liability. Such records must include:
(a) A daily record of all cash and credit sales;
(b) A record of the amount of all fuel purchased, including a bill of lading, invoice, purchase order or other evidence to substantiate each purchase;
(c) A record of all deductions and exemptions claimed in filing tax returns, including exemption and resale certificates and bad debts;
(d) A true and complete inventory of the stock on hand and its value, taken at least once each year.
Records must be open for inspection and examination at all reasonable hours of the business day by the Department of Taxation. The dealer may maintain such records on microfilm.
If an assessment has been made and an appeal to the Commissioner or to a court is pending, all records relating to the period covered by such assessment must be preserved until the final disposition of the appeal.
§ 33. Refunds. (a) Refunds for non-highway use. Any person who pays the motor vehicle fuel sales tax and receives a refund from the Division of Motor Vehicles for taxes imposed under Chapters 13 and 14 may within 30 days from receiving the refund file a claim with the Department of Taxation for the 2 percent motor vehicle fuel sales tax. Claims received more than 30 days from receipt of the motor fuel or special fuels tax refund will not be honored unless the fuel is specifically exempt from the motor vehicle fuel sales tax. Refunds authorized will be for the amount of tax paid by the person filing the claim.
(b) Refunds on exempt transactions. When any person pays the motor vehicle fuel sales tax to a dealer and the use of the fuel is specifically exempt, such person may file a claim for refund with the dealer to whom the tax was paid. The dealer may then file a claim for refund with the Department of Taxation. The dealer must show that the tax was paid to the department, collected from his customer and subsequently refunded to his customer. Refunds authorized will be for the amount of tax paid by the dealer on this return less any applicable dealer discount. Refunds cannot be authorized on exempt transactions unless the dealer files a claim within 3 years from the last day prescribed by law for the timely filing of the return on which the tax was paid to the department.
Forms for filing claims for refund of the motor vehicle sales tax will be furnished by the department upon request.
§ 34. Retail sale defined. Retail sale shall mean a sale to any person for any purpose other than for resale.
§ 35. Returns and payment of tax. (a) Generally. Every dealer is required to file a return on or before the 20th day of the month following each reporting period even if no tax is due. Returns are prescribed and furnished by the Department of Taxation.
In the case of dealers regularly keeping books and accounts on the basis of an annual period that varies from 52 to 53 weeks, reporting consistent with such accounting period is acceptable, provided a satisfactory explanatory statement is attached to the dealer's first return filed under such annual accounting period.
(b) Schedule of Retailer Purchases for Resale. Every refiner, commission distributor, independent jobber or other person who makes sales of fuel to customers for resale shall file monthly schedule FT-102B, Schedule of Retailer Purchases for Resale, which includes the following information regarding purchases of fuel by customers who furnish a resale certificate of exemption: (1) name and address of customer furnishing a resale certificate of exemption; (2) customers certificate of registration number issued for collection of the motor vehicle fuel sales tax and as shown on the resale certificate of exemption; (3) number of gallons of fuel sold to each customer; (4) total selling price; (5) date of sale. The schedule is required to be filed by the 20th of the month following each reporting period.
(c) Payment to accompany dealer's return. At the time of filing the return, the dealer must pay the amount of tax due. Failure to pay the tax will cause it to become delinquent.
(d) Dealer's compensation or discount. As compensation for accounting for and paying the tax, a dealer is allowed 3 percent of the amount of tax due in the form of a deduction provided the amount due was not delinquent at the time of payment. For extensions, see § 17; for penalties and interest, see § 28.
§ 36. Sale of business or quitting business; successor business: If any dealer is liable for any tax, penalty or interest and sells his business or stock of goods or quits the business, he must make a final return and payment within 15 days after the date of selling or quitting the business. At that time, he must also return his Certificate of Registration to the Department of Taxation and include a letter explaining the situation. He must report on his final return the full name and address of any successor.
The dealer's successors or assigns, if any, must withhold a sufficient portion of the purchase money to cover the amount of any taxes, penalties and interest due and unpaid until the former owner produces either a receipt from the Department of Taxation showing that payment has been made or a certificate stating that no taxes, penalties or interest are due. If the purchaser of a business or stock of goods fails to withhold a sufficient portion of the purchase money, he becomes", personally liable for the payment of the taxes, penalties and interest due and unpaid by any former owner.
Any person, firm or corporation who succeeds a dealer in the operation of a business must apply for a Certificate of Registration. When applying for a Certificate of Registration, the successor dealer must inform the department of the acquisition of the business previously operated and furnish the name and certificate number of the previous dealer. The successor may request a receipt or certificate from the department showing the amount of tax, or no tax, due by the previous dealer. Such a 'receipt or certificate will be sufficient evidence to authorize the successor to release to the previous dealer any funds withheld from the purchase price. A Certificate of Registration may not be issued to a successor who has been notified by the department that any tax, penalty or interest is due and unpaid by previous dealers until such amount is paid in full.
§ 37. Sales price and cost price defined. "Sales price" means the total amount for which motor vehicle fuel is sold including the Federal tax and state tax on motor fuels.
"Sales price" does not include finance or transportation charges on a retail sale provided such charges are separately stated. Nor does sales price include the motor vehicle fuel sales tax.
"Cost price" means the actual cost of fuel including the Federal tax and state tax on motor fuels and excluding finance or transportation charges when separately stated and the motor vehicle fuel sales tax.
§ 38. Ships or vessels used or to be used exclusively or principally in interstate or foreign commerce. The tax does not apply to motor vehicle fuel for use or consumption aboard ships or vessels engaged in intercoastal trade between ports in this state and ports in other states of the United States; or in foreign commerce between ports in this state and ports in foreign countries when delivered directly to such ships or vessels. The tax does not apply to motor vehicle fuel used directly in the building, conversion or repair of such ships and vessels described.
§ 39. Situs of sale. The situs of sale shall mean the delivery point of motor vehicle fuel.
Example 1: An order is placed for fuel with an office of an independent jobber or a commission distributor located outside a transportation district whereby the fuel is delivered within a transportation district. The situs of this sale is within the transportation district.
Example 2: An order is placed for fuel with an office of an independent jobber or a commission distributor located within a transportation district whereby the fuel is delivered outside a transportation district. The situs of this sale is outside a transportation district.
§ 40. Transportation district defined. For the purpose of this law, a transportation district shall mean those counties or cities in which a rapid heavy rail commuter mass transportation system operating on an exclusive right-of-way and a bus commuter mass transportation system are owned, operated or controlled, by an agency or a commission as defined in Virginia Code § 15.1-1344.
§ 41. Transportation or delivery charges. The tax does not apply to transportation or delivery charges when added to a taxable sale of motor vehicle fuel if the charges are separately stated on the invoice; otherwise the tax must be computed on the total-charge. For example, if an independent jobber sells motor vehicle fuel for $500.00 to a contractor and delivers the fuel to the contractor's bulk storage tank
at a charge of $25.00, the $25.00 delivery charge is not subject to tax provided it is stated separately from the selling price of the fuel.
§ 42. Trustees, receivers, assignees, executors and administrators. A trustee., receiver, assignee, executor or administrator who continues to operate, manage or control a business engaged in making retail sales of fuel must make application for a new Certificate of Registration except for a corporation which continues to exist as the same legal entity. The tax must be collected and paid like any other dealer. It is immaterial that such officer or person my have been appointed by a court.
The personal representative of a decedent sometimes finds it necessary, in the course of his administration of an estate, to sell some or all of the tangible personal property coming into his hands as executor or administrator. A personal representative doing this, including a sheriff or sergeant who is acting as administrator is not required to register to collect the tax on such sales.
§ 43. Vending pump sales. The tax applies to sales of motor vehicle fuel through vending pumps. The bracket system in § 8 must be used in computing the proper amount of tax on such sales.
§ 44. Withdrawals of motor vehicle fuel from inventory. When any person purchases motor vehicle fuel under a certificate of exemption and withdraws from an inventory with a transportation district motor vehicle fuel for a taxable use, he must pay the sales tax on the cost of such fuel. The cost of the fuel shall include the applicable Federal tax and state tax on motor fuels before computing the 2 percent tax. As to the requirement for a Certificate of Registration, see § 10.
§ 45. Wholesalers. A wholesaler (refiner, commission distributor or independent jobber), as distinguished from a retailer, is a seller who sells for resale. If a wholesaler sells to any user or consumer, however large or small, he becomes a retailer for those sales. When a wholesaler makes retail sales to a consumer in bulk quantities whereas the tax is not included in the retail pump price, the tax is computed at a straight 2 percent on the sales price, including the Federal tax and state tax on motor fuels and it must be separately stated from the selling price. One-half cent or more is treated as one cent. When retail sales are made through a pump, the bracket system in § 8 must be used for determining the proper amount of tax to be included in the unit price. For Records, see § 32.
INDEX
A
Administrative rulings Administrators § 1
Administrators § 42
Agriculture § 2
Airlines § 3
Assignees § 42
B
Bad Checks § 4
Bad Debts § 5
Boats § 6
Bonds § 7
Bracket System § 8
C
Cash Discounts § 8.1
Certificates of Exemption § 9
Certificate of Registration § 10
Collection of Tax § 11
Commercial Watermen § 12
Commission Distributor § 45
Common Carriers § 12.1
Contract Carriers § 13
Contractors § 14
Converting § 22
Cost Price defined § 37
Credit Sales § 15
D
Dealer defined § 16
Delivery Charges § 41
Discounts § 35
Discounts, Cash § 8.1
E
Executors § 42
Exemption Certificates § 9
Extension for Filing § 17
F
Federal Areas § 18
Forest Products § 2
G
Governments § 19
I
Imposition of Tax § 20
Independent Jobber § 45
Interest § 28
Interstate Sales § 21
Intrastate Sales § 21
M
Manufacturing § 22
Military Installations § 18
Mining § 22
Motor Vehicle defined § 23
Motor Vehicle Fuel defined § 24
Motor Vehicle Rentals § 25
N
Nonprofit Organizations S § 26
O
Out-of-state Dealers § 27
P
Payment of Tax § 35
Penalties § 28
Person defined § 29
Place of Business § 30
Processing § 22
Public Service Corporations § 31
R
Rate of Tax § 8
Receivers § 42
Records § 32
Refiners § 45
Refunds § 33
Registration Certificates § 10
Registration Requirements § 10
Retail Sale defined § 34
Retailer Purchases for Resale § 35
Returns § 35
S
Sale of Business § 36
Sales Price defined § 37
Ships in Interstate or Foreign Commerce § 38
Situs of Sale § 39
Successor Business § 36
T
Transportation Charges § 41
Transportation District defined § 40
Trustees, Receivers, etc. § 42
Trustee, etc., as "Person" § 29
V
Vending Pump Sales § 43
Vessels in Interstate or foreign commerce § 38
W
Washington National Airport § 18
Withdrawals for Taxable Use § 44
Wholesalers § 45
Rulings of the Tax Commissioner