SB 692

            
2020 SESSION

20100662D

SENATE BILL NO. 692


Offered January 8, 2020


Prefiled January 7, 2020

A BILL to amend and reenact � 58.1-2295.1 of the Code of 
 Virginia, relating to Interstate 81 Corridor; motor vehicle fuels sales tax.
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Patron-- Obenshain

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Referred to Committee on Finance and Appropriations

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Be it enacted by the General Assembly of Virginia:
 
 
1. That � 58.1-2295.1 of the Code of Virginia is amended and 
 reenacted as follows:
 
 
� 58.1-2295.1. (Contingent expiration date) Levy of tax in 
 Interstate 81 Corridor; payment of tax.
 
 
A. In addition to all other taxes now imposed by law, there is 
 hereby imposed a tax upon every distributor who engages in the business of 
 selling fuels at wholesale to retail dealers for retail sale in any county or 
 city in Planning District 3, 4, 5, 6, or 7, as established pursuant to Chapter 
 42 (� 15.2-4200 et seq.) of Title 15.2, in which 
 a portion of Interstate 81 is located.
 
 
B. 1. The tax shall be imposed on each gallon of fuel, other 
 than diesel fuel, sold by a distributor to a retail dealer for retail sale in 
 any such county or city described in subsection A at a rate of 2.1 percent of 
 the statewide average distributor price of a gallon of unleaded regular 
 gasoline as determined by the Commissioner pursuant to subdivision C 1. For 
 alternative fuels other than liquid alternative fuels, the Commissioner shall 
 determine an equivalent tax rate based on gasoline gallon equivalency.
 
 
2. The tax shall be imposed on each gallon of diesel fuel sold 
 by a distributor to a retail dealer for retail sale in any such county or city 
 described in subsection A at a rate of 2.1 percent of the statewide average 
 distributor price of a gallon of diesel fuel as determined by the Commissioner 
 pursuant to subdivision C 2.
 
 
C. 1. To determine the statewide average distributor price of 
 a gallon of unleaded regular gasoline, the Commissioner shall use the period 
 from June 1 through November 30, inclusive, as the base period for such 
 determination for the immediately following period beginning January 1 and 
 ending June 30, inclusive. The Commissioner shall use the period from December 
 1 through May 31, inclusive, as the base period for the determination of the 
 rate of tax for the immediately following period beginning July 1 and ending 
 December 31, inclusive. In no case shall the statewide average distributor 
 price of a gallon of unleaded regular gasoline determined for purposes of this 
 section be less than the statewide average wholesale price of a gallon of 
 unleaded regular gasoline on February 20, 2013, plus a distributor charge 
 calculated by the Commissioner for that date.
 
 
2. To determine the statewide average distributor price of a 
 gallon of diesel fuel, the Commissioner shall use the period from June 1 
 through November 30, inclusive, as the base period for such determination for 
 the immediately following period beginning January 1 and ending June 30, inclusive. 
 The Commissioner shall use the period from December 1 through May 31, 
 inclusive, as the base period for the determination of the rate of tax for the 
 immediately following period beginning July 1 and ending December 31, 
 inclusive. In no case shall the statewide average distributor price of a gallon 
 of diesel fuel determined for purposes of this section be less than the 
 statewide average wholesale price of a gallon of diesel fuel on February 20, 
 2013, plus a distributor charge calculated by the Commissioner for that date.
 
 
D. The tax levied under this section shall be imposed at the 
 time of sale by the distributor to the retail dealer.
 
 
E. The tax imposed by this section shall be paid by the 
 distributor, but the distributor shall separately state the amount of the tax 
 and add such tax to the price or charge. Thereafter, such tax shall be debt 
 from the retail dealer to the distributor until paid and shall be recoverable 
 at law in the same manner as other debts. No action at law or suit in equity 
 under this chapter shall be maintained in the Commonwealth by any distributor 
 who is not registered under � 58.1-2299.2 or is delinquent in the payment of 
 taxes imposed under this chapter.
 
 
F. Nothing in this section shall be construed to exempt the 
 imposition and remittance of tax pursuant to this section in a sale to a retail 
 dealer in which the distributor and the retail dealer are the same person.
 
 
G. Notwithstanding any other provision of law, no tax shall be 
 imposed by the provisions of subdivision A 2 of � 58.1-2295 on any fuel upon 
 which a tax is paid pursuant to this section.