CODE OF VIRGINIA

SUPPLIER ELECTION TO COLLECT TAX ON OUT-OF-STATE REMOVALS (§ 58.1-2209)

A. An applicant for a license as a supplier may elect on the application to
collect the tax due the Commonwealth on motor fuel that is removed at a terminal
located in another state and has Virginia as its destination state. The
Commissioner shall provide for this election on the application form. A supplier
who makes the election allowed by this section shall be an elective supplier. A
supplier who does not make the election allowed by this section shall be an
in-state-only supplier. A supplier who does not make the election on the
application for a supplier’s license may make the election later by
completing an election form provided by the Commissioner. A supplier who has not
made the election shall not act as an elective supplier for purposes of this
chapter.

B. A supplier who makes the election allowed by this section shall comply with
all of the following with respect to motor fuel that is removed at a terminal
located in another state and has Virginia as its destination state:

   1.  Collect the tax due the Commonwealth on the fuel;

   2.  Waive any defense that the Commonwealth lacks jurisdiction to require the
   supplier to collect the tax due the Commonwealth on the fuel under this
   chapter;

   3.  Report and pay the tax due on the fuel in the same manner as if the
   removal had occurred at a terminal located in Virginia;

   4.  Keep records of the removal of the fuel and submit to audits concerning
   the fuel as if the removal had occurred at a terminal located in Virginia; and

   5.  Report sales by the supplier to a person who is not licensed in the state
   where the removal occurred if the destination state is Virginia.

C. A supplier who makes the election allowed by this section (i) acknowledges
that the Commonwealth imposes the requirements listed in subsection B of this
section on the supplier under its general police power and (ii) submits to the
jurisdiction of the Commonwealth only for purposes related to the administration
of this chapter.

HISTORY: 2000, cc. 729, 758.