A. The tax imposed pursuant to § 58.1-2217 at the point that motor fuel is removed by a system transfer from a terminal in Virginia shall be paid by the position holder of the fuel; however, if the position holder is not the terminal operator, the terminal operator and position holder shall be jointly and severally liable for the tax.

Terms Used In Virginia Code 58.1-2219

  • Diesel fuel: means any liquid that is suitable for use as a fuel in a diesel-powered highway vehicle or watercraft. See Virginia Code 58.1-2201
  • Distributor: means a person who acquires motor fuel from a supplier or from another distributor for subsequent sale. See Virginia Code 58.1-2201
  • Dyed diesel fuel: means diesel fuel that meets the dyeing and marking requirements of 26 U. See Virginia Code 58.1-2201
  • Fuel: includes motor fuel and alternative fuel. See Virginia Code 58.1-2201
  • Motor fuel: means gasoline, diesel fuel, blended fuel, and aviation fuel. See Virginia Code 58.1-2201
  • Person: means any individual; firm; cooperative; association; corporation; limited liability company; trust; business trust; syndicate; partnership; limited liability partnership; joint venture; receiver; trustee in bankruptcy; club, society or other group or combination acting as a unit; or public body, including but not limited to the Commonwealth, any other state, and any agency, department, institution, political subdivision or instrumentality of the Commonwealth or any other state. See Virginia Code 58.1-2201
  • Position holder: means a person who holds an inventory position of motor fuel in a terminal, as reflected on the records of the terminal operator. See Virginia Code 58.1-2201
  • Rack: means a facility that contains a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a transport truck, railroad tank car, or other means of transfer that is outside the terminal transfer system. See Virginia Code 58.1-2201
  • Removal: means a physical transfer other than by evaporation, loss, or destruction. See Virginia Code 58.1-2201
  • Supplier: means (i) a position holder, or (ii) a person who receives motor fuel pursuant to a two-party exchange. See Virginia Code 58.1-2201
  • System transfer: means a transfer (i) of motor fuel within the terminal transfer system or (ii) of fuel grade ethanol by transport truck or railroad tank car. See Virginia Code 58.1-2201
  • Terminal: means a motor fuel storage and distribution facility (i) to which a terminal control number has been assigned by the Internal Revenue Service, (ii) to which motor fuel is supplied by pipeline or marine vessel, and (iii) from which motor fuel may be removed at a rack. See Virginia Code 58.1-2201
  • Terminal operator: means a person who owns, operates, or otherwise controls a terminal. See Virginia Code 58.1-2201

B. The tax imposed pursuant to § 58.1-2217 at the point that motor fuel is removed at a terminal rack in Virginia shall be payable by the person that first receives the fuel upon its removal from the terminal. If the motor fuel is first received by an unlicensed distributor, the supplier of the fuel shall be liable for payment of the tax due on the fuel. If the motor fuel is sold by a person who is not licensed as a supplier, then (i) the terminal operator and (ii) the person selling the fuel shall be jointly and severally liable for payment of the tax due on the fuel. If the motor fuel removed is not dyed diesel fuel but the shipping document issued for the fuel states that the fuel is dyed diesel fuel, the terminal operator, the supplier, and the person removing the fuel shall be jointly and severally liable for payment of the tax due on the fuel.

2000, cc. 729, 758.

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