Chap. 487.—An ACT to amend and reenact Sections 1, 5, and 6, as amended,
of Chapter 212 of the Acts of Assembly of 1932, approved March 23, 1932,
providing for levying a tax on certain fuels, the sections relating, reserves
to disposition of funds collected and refunds. [Ss ]

Approved April 5, 1948

Be it enacted by the General Assembly of Virginia:

1. That sections one, five, and six, as amended, of chapter two
hundred twelve of the Acts of Assembly of nineteen hundred thirty-two,
approved March twenty-three, nineteen hundred thirty-two, be amended
and reenacted as follows:

Section 1. Definitions—The following words, terms and phrases
used in this act are for the purpose 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, distillate or other volatile or in-
flammable liquid fuels.

(b) “Motor fuel” shall mean and include any substance or combi-
nation of substances which is intended to be or is capable of being used
for the purpose of propelling or running by combustion any internal
combustion engine and sold or used for that purpose, except the pro-
ducts commonly known as kerosene and/or distillate or petroleum
products of lower gravity (Baume Scale) when not used to propel a
motor vehicle or for compounding or combining with any motor fuel.

(c) The term “dealer” is hereby defined as any person who or
which imports, or causes to be imported, in the State of Virginia, motor
fuel, as herein defined, for use, distribution, or sale and delivery in
and after the same reach the State of Virginia; also any person who or
which produces, refines, manufactures or compounds such fuel in the
State of Virginia, for use, distribution or sale and delivery in this State;
and also any person who or which receives motor fuel by tank car,
barge, pipe line delivery, or any common or contract carrier from a
point within this State. Any person importing or causing to be imported,
into this State, for their own use, such motor fuel in any container
other than the usual tank or receptacle connected with the engine of
the motor vehicle in the operation of which the motor fuel is to be
consumed, and any person producing, refining, manufacturing or com-
pounding such motor fuel in this State for their own use, shall also be
considered a dealer within the meaning of this act, provided that this
definition shall not include any railroad company purchasing motor fuel
‘for use in its railroad business, and not to be used for motor vehicles
on the highways of this State.

(d) “Persons” shall mean and include any person or persons,
partnership, firm, association or corporation.

(e) “Commissioner” when used in this act shall mean the Commis-
sioner of the Division of Motor Vehicles.

(f) “Aviation Fuel” shall mean a motor fuel designed for use
in the operation of aircraft, and sold or used for that purpose.

The laws embraced in this chapter, and the sections amendatory
thereto shall be known, designated and cited as the “Motor Fuel Tax
Act of Virginia’.

Section 5. Amount of tax; reports, payments; exemptions.—(a)
There is hereby levied a tax of six cents per gallon on all motor fuel
as herein defined, which is sold and delivered or used in this State, in-
cluding all motor fuel as herein defined, sold by or through post ex-
changes, ship stores, ship service stores, commissaries, filling stations, li-
censed traders and other similar agencies located on United States mili-
tary or other reservations, within the boundaries of the State, when such
fuels are not for the exclusive use of the United States, and is not under
the protection of the interstate commerce clause of the Constitution of the
United States ; provided, that the tax herein imposed and assessed shall be
collected by and paid to the State of Virginia but once in respect to any
motor fuel. Nothing herein shall be construed to exempt from this tax
any dealer in motor fuel on the motor fuel used in making such distribu-
tion. The tax herein levied shall be collected in the manner hereinafter
previded.

(b) On or before the last day of each calendar month, each dealer
in motor fuel shall render to the Commissioner a statement on forms
prepared and furnished by the Commissioner, which shall be sworn to by
one of the principal officers in the case of domestic corporations, or by
the resident general agent or attorney-in-fact; by chief accountant or
officer in case of foreign corporations; 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 quantity of motor fuel on hand
on the first and last day of the preceding calendar month; the quantity
of motor fuel received, produced, manufactured, refined or compounded
during the preceding calendar month; and the quantities of motor fuel
sold and delivered or used within the State of Virginia during the pre-
ceding calendar month, and such dealer shall at the time of rendering
such report, pay to the Commissioner the tax or taxes herein levied
on all motor fuel sold and delivered or used within the State of Virginia
during the preceding calendar month. Provided that no dealer shalt
pay such tax on motor fuel received by such dealer from a point within
the State, from another duly licensed dealer who has paid or assumed the
payment of such tax.

(c) Bills shall be rendered to all purchasers of motor fuels by
dealers selling the same. Such bills shall contain a statement thereon in
a conspicuous place that the liability to the State for the tax or taxes
hereby imposed has been assumed, and that the dealer will pay the tax
or taxes thereon on or before the last day of the following month.

(d) The tax shall be payable upon motor fuel sold and delivered
to or used by the State of Virginia and every political subdivision thereof.

(e) Motor fuel used by the United States or any of the govern-
mental agencies thereof shall not be subject to tax hereunder.

(f) Motor fuel dealers licensed under this act shall attach a state-
ment to their monthly reports which statement shall show the quantity
of aviation fuel on hand the first and last days of the preceding calendar
month; the quantity of aviation fuel received, produced, refined or
compounded during the month, and the quantity sold, delivered or used
during the month.

The quantity of such fuel so sold, delivered or used shall be the
basis upon which the aviation gas tax shall be set aside in a special fund ;
from the amount so set aside all refunds provided by law for refunds
of the aviation gas tax shall be made, and the remainder thereof shall
be expended as provided by law.

Section 6. Disposition of funds collected—After providing for the
refunds under this act, the Commissioner shall promptly pay all taxes
and fees collected by him under this act into the State treasury. The
revenue derived from the tax levied as aforesaid is hereby appropriated
for the construction of the roads and projects comprising the State
Primary Highway system and for the construction or maintenance of
the roads and projects comprising the State secondary highway system
and shall be applied to no other purpose, except that there may be paid
out of this fund a contribution toward the construction, reconstruction
and/or maintenance of streets in cities and towns such sums as may be
provided by law, and except further, that such sums out of said funds
may be expended for the operation and maintenance of the highway
department and the Division of Motor Vehicles as may be provided by
law, provided, however, the Governor is hereby authorized to transfer
out of the said gasoline tax an amount not exceeding twenty-five thousand
dollars ($25,000.00) annually for the purpose of inspection of gasoline
and motor grease measuring and/or distributing equipment and/or for
inspection and analysis of gasoline for purity ; the Commissioner of the
Division of Motor Vehicles shall also pay, at the rate of six cents a
gallon, less refunds made in accordance with law, for each and every
gallon of aviation fuel sold and delivered or used in this State into the
treasury, as a special fund, to be disbursed upon order of the State
Corporation Commission, on warrants of the Comptroller to defray
the cost of the administration of the laws of this State relating to aviation
and for the construction, maintenance and improvement of airports and
landing fields to which the public now, or which it is proposed shall,
have access, and for the promotion of aviation in the interést of operators
and the public generally.

2. This act shall be in force on and after July one, nineteen hundred
forty-eight.