Chap. 503.—An ACT to amend and reenact Sections 5 and 6, Chapter 307, Acts
of Assembly of 1940, approved March 28, 1940. Known, designated and cited
as the Use Fuel Tax Act, and relating to the licensing of users and tax
reports. {S 218]

Approved April 5, 1948

Be it enacted by the General Assembly of Virginia:

1. That sections five and six, chapter three hundred seven, Acts
of Assembly of nineteen hundred forty, approved March twenty-eight,
nineteen hundred forty, be amended and reenacted as follows:

Section 5. Application for license; contents; licensing of users.
(a) It shall be unlawful for any user to use or consume any such
fuel within this State unless such user is the holder of an uncancelled
license issued by the Division. To procure such license every user shall
file with the Commissioner an application upon oath in such form as the
Commissioner may prescribe setting forth the name and address of the
user, and description of motor vehicles owned by him in which fuel will
be used.

A license shall not be issued until the person applying therefor has
filed with the Commissioner a surety bond in the approximate sum of
three times the average monthly tax due by such user, except that the
amount shall never be less than five hundred dollars ($500.). Every
such bond shall have as surety, a duly authorized surety company,
approved by the Bureau of Insurance of the State Corporation Commis-
sion of Virginia and signed by a resident of Virginia agent of the surety,
conditioned that the user shall faithfully comply with the provisions of
this act during the effective period of his license. The Commissioner may
require any licensed user to furnish such additional surety bond as shall
be necessary to secure at all times the payment by him to the Common-
wealth of all fuel taxes, penalties, interest, fines, uncollectible check fees
and attorney fees due by him: Provided, That the Commonwealth of
Virginia and the political subdivisions thereof shall not be required to
file bonds as guaranty of payment of fuel taxes imposed herein.

Any surety on a bond furnished by a licensed user, as provided herein,
shall be released and discharged from any and all liability to the Com-
monwealth accruing on such bond after the expiration of sixty (60) days
from date upon which the surety shall have lodged, with the Division, a
written request to be released and discharged; but this provision shall
not operate to relieve, release or discharge the surety from any liability
already accrued, or which shall accrue before the expiration of the
sixty (60) day period. The Division shall promptly after receiving such
request notify the licensed user who furnished the bond, and unless the
user shall, on or before the expiration of the sixty (60) day period, file
with the department a new bond with corporate surety, approved by
Bureau of Insurance of the State Corporation Commission, the Commis-
sioner shall forthwith cancel the user’s license. Whenever a new bond
shall be furnished by the licensed user, as aforesaid, the Commissioner
shall cancel and surrender the original bond of the user as soon as he
shall be satisfied that all liability under the original bond has been fully
discharged.

Any person, required by the provisions of this section to file a
surety bond, may, in lieu thereof, deposit with the Commissioner negoti-
able bonds, which are direct obligations of the United States Govern-
ment or of the Commonwealth of Virginia, the par value thereof to be of
the amount of the surety bond required of such person as collateral
guarantee of payment of all liabilities accruing under the provisions of
this act.

(b) Inthe event that—
1) Any application for a license to use fuel as a user in this State
shall be filed by any person whose license shall at any time theretofore
have been cancelled for cause by the Commissioner, or in case

(2) Said Commissioner shall be of the opinion that such application
is not filed in good faith, or that

(3) Such application is filed by some person as a subterfuge for
the real person in interest whose license or registration shall theretofore
have been cancelled for cause by said Commissioner.

Then and in any of said events the Commissioner after a hearing of
which the applicant shall have been given five days’ notice in writing
and in which said applicant shall have the right to appear in person
or by counsel and present testimony, shall have and is hereby given the
right and authority to refuse to issue to said person a license certificate
in this State.

(c) The application in proper form having been accepted for filing
and the other conditions and requirements of this section having been
complied with, the Commissioner shall issue to such user a license and
such license shall remain in full force and effect, unless cancelled as pro-
vided in this act; provided, however, that no license shall be issued for
more than one year and shall be renewable on July first of each year.

(d) The license so issued by the Commissioner shall not be assign-
able and shall be valid only for the user in whose name issued and shall
be displayed conspicuously by the usér on each motor vehicle so used.

(e) The Commissioner shall keep and file all applications with an
alphabetical index thereof, together with a record of all licensed users.

Section 6. Tax reports: Computation and payment of tax.—On or
before the last day of each calendar month, each user of fuel shall render
to the Commissioner a statement on forms prepared and furnished by
the said 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 user in all other cases; which statement
shall show the quantity of fuel on hand on the first and last day of the
preceding calendar month, and such user shall at the time of rendering
such report, pay to the Commissioner the tax or taxes herein levied on
all fuel used within the State of Virginia during the preceding calendar
month.