23VAC10-240-20. Agriculture. (Repealed.)

The tax does not apply to motor vehicle fuel sold to farmers for use in farm machinery or motor vehicles, licensed or nonlicensed, 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.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-2, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-30. Airlines operating in intrastate, interstate or foreign commerce. (Repealed.)

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 §58.1-1501, 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.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-3, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-40. Bad checks. (Repealed.)

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 and the civil penalties set out in 23VAC10-240-300.

A bond may be required of any person who has tendered a bad check.

Statutory Authority

§§58.1-12 and 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-4, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-50. Bad debts. (Repealed.)

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.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-5, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-60. Boats. (Repealed.)

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 Chapter 21 of Title 58.1 of the Code of Virginia is also subject to this tax. As to a refund, see 23VAC10-240-350.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-6, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-100. Certificates of exemption. (Repealed.)

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.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-9, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-130. Commercial watermen. (Repealed.)

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 nonhighway use see 23VAC10-240-350.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-12, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-140. Common carriers. (Repealed.)

The tax does not apply to motor vehicle fuel sold to a common carrier for direct use in a common carrier operation.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR 630-12-12.1, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-150. Contract carriers. (Repealed.)

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 nonhighway use see 23VAC10-240-350.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-13, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-200. Federal areas. (Repealed.)

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.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-18, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-210. Governments. (Repealed.)

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 23VAC10-240-200.)

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-19, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-240. Manufacturing, processing, refining, mining, converting. (Repealed.)

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.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-22, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-270. Motor vehicle rentals. (Repealed.)

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.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-25, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-280. Nonprofit organizations. (Repealed.)

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 USC Section 3030(e) through 3030(g), as amended, as administered by the Office of Aging of the Commonwealth of Virginia.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-26, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-300. Penalties and interest. (Repealed.)

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%. In no case will the penalty be less than $10, 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 Section 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 23VAC10-240-40.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-28, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-310. Person defined. (Repealed.)

"Person" includes any individual, firm, partnership, cooperative, non-profit 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.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-29, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-330. Public service corporations. (Repealed.)

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 23VAC10-240-150.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-31, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-340. Records and their preservation. (Repealed.)

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 shall include:

1. A daily record of all cash and credit sales;

2. A record of the amount of all fuel purchased, including a bill of lading, invoice, purchase order or other evidence to substantiate each purchase;

3. A record of all deductions and exemptions claimed in filing tax returns, including exemption and resale certificates and bad debts;

4. 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.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-32, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-360. Retail sale defined. (Repealed.)

"Retail sale" shall mean a sale to any person for any purpose other than for resale.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-34, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-380. Sale of business or quitting business; successor business. (Repealed.)

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.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-36, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-400. Ships or vessels used or to be used exclusively or principally in interstate or foreign commerce. (Repealed.)

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.

Statutory Authority

§§58.1-203 and 58.1-1720 of the Code of Virginia.

Historical Notes

Derived from VR630-12-38, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-420. Transportation district defined. (Repealed.)

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 §15.1-1344 of the Code of Virginia.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-40, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-430. Transportation or delivery charges. (Repealed.)

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 to a contractor and delivers the fuel to the contractor's bulk storage tank at a charge of $25, the $25 delivery charge is not subject to tax provided it is stated separately from the selling price of the fuel.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-41, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-450. Vending pump sales. (Repealed.)

The tax applies to sales of motor vehicle fuel through vending pumps. The bracket system in 23VAC10-240-80 must be used in computing the proper amount of tax on such sales.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-43, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.

23VAC10-240-460. Withdrawals of motor vehicle fuel from inventory. (Repealed.)

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 2.0% tax. As to the requirement for a Certificate of Registration, see 23VAC10-240-110.

Statutory Authority

§58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-12-44, eff. March 1, 1984; repealed, Virginia Register Volume 23, Issue 25, eff. October 4, 2007.