Tax Type
Retail Sales and Use Tax
Description
Boat fuel exempt from the motor fuel tax
Topic
Exemptions
Date Issued
06-29-1984
June 29, 1984
Re: §58-1118 Application: Sales and Use Tax
Dear ********************
This will reply to your letter of February 23, 1984, in which you seek relief of use tax assessed against you for diesel fuel purchases.
FACTS
You purchased diesel fuel at various marinas for your boat on which you were charged motor fuel tax pursuant to Chapter 13 of Title 58. You received a refund of such tax from the Division of Motor Vehicles because the fuel was used to propel a boat. Subsequently you were assessed use tax on the refund.
DETERMINATION
§ 58-441.6(e) of the Code of Virginia provides an exemption from Virginia retail sales and use tax for motor vehicle fuels subject to the tax imposed by Chapter 13. Such fuels are subject to use tax if the motor fuel tax is refunded unless the taxes would be specifically exempted. Va. Code § 58-441.6(z) does specifically exempt from use tax motor fuels for use in a boat upon which motor fuel tax is refunded pursuant to § 58-730.3. Accordingly, the assessment against you shall be abated in full.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner