Virginia Code 58.1-2225: Backup tax; liability.
A. There is hereby levied a tax at the rate specified in § 58.1-2217 on the following:
Terms Used In Virginia Code 58.1-2225
- End seller: means the person who sells fuel to the ultimate user of the fuel. See Virginia Code 58.1-2201
- Fuel: includes motor fuel and alternative fuel. See Virginia Code 58.1-2201
- Highway: means every way or place of whatever nature open to the use of the public for purposes of vehicular travel in the Commonwealth, including the streets and alleys in towns and cities. See Virginia Code 58.1-2201
- Highway vehicle: means a self-propelled vehicle designed for use on a highway. See Virginia Code 58.1-2201
- Motor fuel: means gasoline, diesel fuel, blended fuel, and aviation fuel. See Virginia Code 58.1-2201
- Use: means the actual consumption or receipt of motor fuel by any person into a highway vehicle, aircraft, or watercraft. See Virginia Code 58.1-2201
1. Dyed diesel fuel that is used to operate a highway vehicle for a taxable use other than a use allowed under 26 U.S.C. § 4082;
2. Motor fuel that was allowed an exemption from the motor fuel tax and was then used for a taxable purpose; and
3. Motor fuel that is used to operate a highway vehicle after an application for a refund of tax paid on the motor fuel is made or allowed on the basis that the motor fuel was used for an off-highway purpose.
B. The operator of a highway vehicle that uses motor fuel that is taxable under this section is liable for the tax. If the highway vehicle that uses the fuel is owned by or leased to a motor carrier, the operator of the highway vehicle and the motor carrier shall be jointly and severally liable for the tax. If the end seller of motor fuel taxable under this section knew or had reason to know that the motor fuel would be used for a purpose that is taxable under this section, the operator of the highway vehicle and the end seller shall be jointly and severally liable for the tax.
C. The tax liability imposed by this section shall be in addition to any other penalty imposed pursuant to this chapter.
D. Persons diverting motor fuel into Virginia that had an original destination outside of Virginia shall incur liability for the tax levied for such motor fuel, as specified in § 58.1-2217, and shall be subject to the reporting and payment requirements set forth in subsection E of § 58.1-2230.