Virginia Code 58.1-2224: Tax on unaccounted for motor fuel losses; liability
A. There is hereby levied a tax at the rate specified by § 58.1-2217 annually on taxable unaccounted for motor fuel losses at a terminal. “Taxable unaccounted for motor fuel losses” means the number of gallons of unaccounted for motor fuel losses that exceed one-half of one percent of the number of net gallons removed from the terminal during the year by a system transfer or at the terminal rack. “Unaccounted for motor fuel losses” means the difference between (i) the amount of motor fuel in inventory at the terminal at the beginning of the year plus the amount of motor fuel received by the terminal during the year and (ii) the amount of motor fuel in inventory at the terminal at the end of the year plus the amount of motor fuel removed from the terminal during the year. Accounted for motor fuel losses which have been approved by the Commissioner or motor fuel losses constituting part of a transmix shall not constitute unaccounted for motor fuel losses.
Terms Used In Virginia Code 58.1-2224
- Commissioner: means the Commissioner of the Department of Motor Vehicles. 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
- Net gallons: means the amount of motor fuel measured in gallons when adjusted to a temperature of 60 degrees Fahrenheit and a pressure of 14. 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
- 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
- Transmix: means (i) the buffer or interface between two different products in a pipeline shipment or (ii) a mix of two different products within a refinery or terminal that results in an off-grade mixture. See Virginia Code 58.1-2201
B. The terminal operator whose motor fuel is unaccounted for shall be liable for the tax imposed by this section, together with a penalty equal to the amount of tax payable. Motor fuel received by a terminal operator and not shown on an informational return filed by the terminal operator with the Commissioner as having been removed from the terminal shall be presumed to be unaccounted for motor fuel losses. A terminal operator may rebut this presumption by establishing that motor fuel received at a terminal, but not shown on an informational return as having been removed from the terminal, was an accounted for loss or constitutes part of a transmix.