CHAP. 107.—An ACT to levy a tax upon motor vehicle fuels; to provide
for its collection; to appropriate revenue raised by the same and to
prescribe penalties. [H B 83]

Approved March 26, 1923.

1. Be it enacted by the general assembly of Virginia, as
‘ollows:

The following words, terms, and phrases used in this act are
‘or the purposes hereof defined as follows:
(A) “Motor vehicles” are hereby defined as all automotive
or self-propelled vehicles, engines or machines, which are
operated or propelled by internal combustion of gasoline, dis-
tillate, or other volatile or inflammable liquid fuels.

(B) “Motor vehicle fuels” are such fuels known as gaso-
line, benzine, naptha, liberty fuel, and such other volatile or in-
flammable liquids, not including kerosene oil, as may be used for
the purpose of operating or propelling motor vehicles.

(C) The term “dealer” is hereby defined as any person,
association of persons, firm, or corporation, who imports or
causes to be imported into the State of Virginia motor vehicle
fuels as herein defined for use, distribution, or sale and delivery
in and after the same reaches the State of Virginia; and also
any person, association of persons, firms or corporation who
produces, refines, manufactures or compounds such fuels in the
State of Virginia, for use, distribution, or sale and delivery in
this State.

2. In addition to the taxes now provided by existing law,
every dealer, as herein defined, who is now engaged or who may
hereafter engage in his own name, or in the name of others, or
in the name of his representatives or agents in this State, in the
sale and distribution of motor vehicle fuels, as herein defined,
shall, not later than the twentieth of each calendar month,
render to the secretary of the Commonwealth a statement on
forms prepared and furnished by the said secretary which shall
be sworn to by one of the principal officers, in case of domestic
corporations, or by the resident general agent or attorney in
fact, or by a chief accountant or officer, in case of a foreign
corporation, by the managing agent or owner in case of a firm
or association of persons, or by the dealer in all other cases,
which statement shall show the quantities of motor vehicle fuels
sold and delivered within the State of Virginia during the pre-
ceding calendar month, and such dealer shall at the same time
pay the tax or taxes hereinafter levied on all motor vehicle fuels
sold and delivered as shown by such statement. Bills shall be
rendered to all purchasers of motor vehicle fuels by such dealers
except in cases of retail sales where exemption is not claimed
by the purchaser under the terms of this act. The said bills shall
contain a statement printed thereon in a conspicuous place that
the liability to the State for the tax or taxes herein imposed has
been assumed, and that the dealer will pay the tax or taxes
thereon on or before the twentieth day of the following month.
Provided, however, that the tax or taxes herein levied on motor
vehicle fuels, shall upon all such motor vehicle fuels as shall, at
the time this law becomes effective, be in the hands of a retail
distributor (to-wit: any person, association of persons, firm or
corporation who sells to the consumer) be paid by such retail
distributor, who as to the motor vehicle fuels in his hands on the
day this law become effective shall make all such reports, do all
such things, and pay all such sums, in such manner, and at such
times as in other cases is required of the dealer, as herein
defined.

3. There is hereby levied a tax of two cents per gallon on all
motor vehicle fuels, as herein defined, which is sold and delivered
in this State, and is not under the protection of the interstate
commerce clause of the Constitution of the United States; and
on and after July first, nineteen hundred and twenty-three, there
is hereby levied on all motor vehicle fuels, as herein defined,
which is sold and delivered in this State, and is not under the
protection of the interstate commerce clause of the Constitution
of the United States, an additional tax of one cent per gallon.

A. The said tax or taxes shall be paid on or before the
twentieth day of each month, as herein provided, to the secre-
tary of the Commonwealth, who shall receipt to the dealer there-
for, and, less any refunds made under this act, and the necessary
expenses incurred in the administration thereof, promptly pay
the same into the State treasury. The revenue from the two
cent per gallon tax levied, as aforesaid, is hereby appropriated
for the construction of the roads and projects comprising the
State highway system, and shall be applied to no other purpose.
The revenue from the said additional one cent tax per gallon
levied, as aforesaid, is on and after July first, nineteen hundred
and twenty-three, appropriated for the construction of roads
and bridges embraced in the several county highway systems of
this State, and shall be distributed among the several counties
of this State, in the same manner, for the same purposes, and
upon the same conditions as State money aid is now distributed
to said counties, except that the counties shall not be required
to match the said sums herein appropriated to them or any part
thereof. Warrants for the expenditure of the funds aforesaid
shall be issued by the auditor of public accounts upon certificates
of the chairman of the highway commission, or his representa-
tives, designated by him, and bonded, that the parties are
entitled thereto, and shall be paid by the State treasurer out of
the said funds.

5. Every dealer in motor vehicle fuels shall keep a record of
all purchases, receipts, sales, and deliveries of such fuels, which
shall include the number of gallons sold and delivered and the
date of sale, which records shall be preserved for a period of
two years and shall at all times during the business hours of the
day be subject to inspection by the secretary of the Common-
wealth or his deputies, or such other officers as may be duly
authorized by said secretary.

6. The said tax or taxes shall not be imposed on motor
fuels when exported or sold for exportation and exported from
the State of Virginia to any other State or nation.

. Any person, association of persons, firm or corporation,
who shall buy, in quantities of five gallons or more at any one
time, any motor vehicle fuels as defined in this act for the pur-
pose of, and the same is actually used for, operating or propell-
ing boats, ships, aeroplanes or aircraft, stationary gas engines,
tractors used for agricultural purposes and motor equipment
belonging to cities and towns used exclusively in municipal
activities, or who shall purchase and use any of such fuels for
spraying purposes or for cleaning, dyeing or other commercial
use, except in motor vehicles operated, or intended to be operated
in whole or in part upon any of the public highways, streets or
alleys of this State, on which motor fuels the tax or taxes im-
posed by this act shall have been paid, shall be reimbursed and
repaid the amount of such tax or taxes paid by him, upon pre-
senting to the secretary of the Commonwealth an affidavit ac-
companied by a ticket, invoice or other document from the
dealer or retail distributor, showing such purchase, which
affidavit shall set forth the total amount of such fuel so pur-
chased and used by such consumer, other than in motor vehicles
operated or intended to be operated upon any of the public high-
ways, streets or alleys of this State, and how used; and the
secretary of the Commonwealth upon the presentation of such
affidavit and such ticket, invoice or other document, shall repay
to such consumer from the taxes collected on motor vehicle fuels
the said taxes paid on fuels sold and delivered and used other
than for motor vehicles as aforesaid; provided that application
for refunds as provided herein must be filed with the said
secretary within sixty days from the date of sale or invoice, on
forms prepared and furnished by said secretary.

8. Any dealer, as herein defined, violating any of the pro-
visions of this act, or any person, association of persons, firm or
corporation making any false statement in connection with an
application for the refund of any money or tax as provided in
this act, or collecting or causing to be repaid to him or to any
person, any tax without being entitled to same under the pro-
visions of this act, shall be deemed guilty of a misdemeanor.
But no retail distributor as herein defined shall be prosecuted
hereunder for failure to pay the tax or taxes on not exceeding
two hundred and fifty (250) gallons of motor vehicle fuel on
hand the day this act becomes effective, but the tax or taxes on
such motor vehicle fuel may be recovered as herein provided

or.

9. If any dealer, as herein defined, shall fail to pay the tax
or taxes on motor vehicle fuels due by such dealer under the
provisions of this act, within thirty days after such tax shall be
due, the attorney general shall bring appropriate action for the
recovery of such tax; and if it shall be found as a fact that such
failure to pay was wilful on the part of such dealer, judgment
shall be rendered for double the amount of the tax found to be
due, together with costs, and the amount collected shall be paid
into the State treasury as hereinabove provided. All remedies
now, or which may hereafter be given by the laws of this State
for the collection or enforcement of taxes are hereby expressly
given for the collection and enforcement of judgments recovered
under this section. ]

10. If any part or parts of this act shall be declared un-
constitutional for any reason the remainder of the act shall not
be affected thereby.