Virginia Code 58.1-2222: Liability for tax on blended fuel.
A. The tax imposed pursuant to § 58.1-2217 at the point that blended fuel is made in Virginia shall be payable by the blender. The number of gallons of blended fuel on which the tax is payable is the difference between the number of gallons of blended fuel made and the number of gallons of previously taxed motor fuel used to make the blended fuel.
Terms Used In Virginia Code 58.1-2222
- Blended fuel: means a mixture composed of gasoline or diesel fuel and another liquid, other than a de minimis amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle. See Virginia Code 58.1-2201
- Blender: means a person who produces blended fuel outside the terminal transfer system. See Virginia Code 58.1-2201
- 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
- Fuel: includes motor fuel and alternative fuel. See Virginia Code 58.1-2201
- Gasoline: means (i) all products that are commonly or commercially known or sold as gasoline and are suitable for use as a fuel in a highway vehicle, aircraft, or watercraft, other than products that have an American Society for Testing Materials octane number of less than 75 as determined by the motor method; (ii) a petroleum product component of gasoline, such as naphtha, reformate, or toluene; (iii) gasohol; and (iv) fuel grade ethanol. 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
- Liquid: means any substance that is liquid above its freezing point. See Virginia Code 58.1-2201
- Motor fuel: means gasoline, diesel fuel, blended fuel, and aviation fuel. 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
- 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
- Tank wagon: means a straight truck or straight truck/trailer combination designed or used to carry fuel and having a capacity of less than 6,000 gallons. 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
- Transport truck: means a tractor truck/semitrailer combination designed or used to transport cargoes of motor fuel over a highway. See Virginia Code 58.1-2201
- Undyed diesel fuel: means diesel fuel that is not subject to the United States Environmental Protection Agency or Internal Revenue Service fuel-dyeing requirements. See Virginia Code 58.1-2201
B. The tax imposed pursuant to § 58.1-2217 at the point that blended fuel is imported to Virginia shall be payable by the importer.
C. The following blended fuel shall be considered to have been made by the supplier of gasoline or undyed diesel fuel used in the blend:
1. An in-line-blend made by combining a liquid with gasoline or undyed diesel fuel as the fuel is delivered at a terminal rack into the motor fuel storage compartment of a transport truck or a tank wagon; and
2. A kerosene splash-blend made when kerosene is delivered into a motor fuel storage compartment of a transport truck or a tank wagon and undyed diesel fuel is also delivered into the same storage compartment, if the buyer of the kerosene notified the supplier before or at the time of delivery that the kerosene would be used to make a splash-blend.