Virginia Code 58.1-2237: Duties of supplier as trustee
A. All tax payments due to the Commonwealth received by a supplier pursuant to § 58.1-2231 shall be held by the supplier as trustee in trust for the Commonwealth, and a supplier has a fiduciary duty to remit to the Commissioner the amount of tax received by the supplier. A supplier shall be liable for the taxes paid to him.
Terms Used In Virginia Code 58.1-2237
- Commissioner: means the Commissioner of the Department of Motor Vehicles. 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
- Exporter: means a person who obtains motor fuel in Virginia for sale or distribution in another state, territory, or foreign country. See Virginia Code 58.1-2201
- Fiduciary: A trustee, executor, or administrator.
- Fuel: includes motor fuel and alternative fuel. See Virginia Code 58.1-2201
- Importer: means a person who obtains motor fuel outside of Virginia and brings that motor fuel into Virginia by any means of conveyance other than in the fuel tank of a highway vehicle. See Virginia Code 58.1-2201
- Licensee: means any person licensed by the Commissioner pursuant to Article 2 (§ 58. 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
- 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
- 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
B. A supplier shall notify a licensed distributor, licensed exporter, or licensed importer who received motor fuel from the supplier during a reporting period of the number of taxable gallons received. The supplier shall give this notice after the end of each reporting period and before the licensee is required to remit to the supplier the amount of tax due on the fuel.
C. A supplier of motor fuel at a terminal shall notify the Commissioner within 10 business days after a return is due of any licensed distributor or licensed importer who did not pay the tax due the supplier when the supplier filed his return. The notice shall be transmitted to the Commissioner in the form required by the Commissioner.
D. A supplier who receives a payment of tax shall not apply the payment to a debt that the person making the payment owes the supplier for motor fuel purchased from the supplier.