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1994 SESSION

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HB 215 Motor fuel and special fuel tax.

Introduced by: Harry J. Parrish | all patrons    ...    notes | add to my profiles

SUMMARY:

Motor fuel and special fuel tax. Broadens the definition of bulk user by removing the term "solely" and includes in the definition of supplier any person who is an exporter of special fuel or assumes the responsibility and liability for the payment of special fuel tax. As a result of implementing, during the 1993 Session, recommendations made by the Task Force on Fuels Tax Evasion, the ability of exporters to buy fuel destined for sale out-of-state was ended and replaced by a process of paying Virginia's tax at the time of purchase and applying for a refund upon sale out-of-state. This process was aimed at curbing abuses of the old system; however, the change requires legitimate businesses to tie up their money by prepaying Virginia's tax and creates a system which requires more petroleum product dealers to register with DMV to set up a multi-state tracking and audit trail system. It is argued that payment of the tax up front puts Virginia exporters at a competitive disadvantage. By amending the definitions of "bulk storage" and "suppliers," these exporters may again buy fuel tax-free while the Commonwealth is protected because the registration requirements placed on suppliers should be sufficient to prevent widespread abuse.


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