CHAPTER 459

AN ACT to amend and reenact §§ 58-715 as amended, 58-719, 58-730 as
amended, and 58-780.1 of the Code of Virginia, relating to refunds of
tax on motor fuels, procedure therefor, disposition of funds collected,
and restrictions on use of certain tax proceeds. (H 554]

Approved March 29, 1958

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-715 as amended, 58-719, 58-730 as amended, and 58-730.1
of the Code of Virginia, be amended and reenacted as follows:

§ 58-715. Any person who shall buy, in quantities of five gallons or
more at any one time, any motor fuel for the purpose of operating or
propelling boats, ships, stationary gas engines, tractors used for agri-
cultural purposes, buses owned and operated by a county or the school
board thereof while being used to transport children to and from public
schools, equipment of voluntary fire fighting companies within the State
actually and necessarily used for fire fighting purposes, equipment of
volunteer rescue squads within the State actually and necessarily used
for rescue purposes, or motor equipment belonging to cities, towns
and counties used exclusively in public activities and shall actually
use the same for such purpose or who shall purchase and use any of
such fuel for spraying purposes or for cleaning, dyeing or other com-
mercial 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 fuel the tax or taxes imposed by this chapter shall
have been paid, shall be reimbursed and repaid the amount of such tax or
taxes paid by such person. Any resident of this State who operates a
farm on any island outside the State but within one mile of its boundaries
shall be reimbursed and repaid the amount of such tax or taxes paid by
such person on motor fuel used for farming purposes on such island. And
a refund of two cents per gallon on all motor fuel purchased within the
State and consumed in aeroplanes or aircraft in flights over and within
the boundaries of this State shall be made and a refund of the full tax
paid shall be made on all motor fuel purchased in this State and consumed
in aeroplanes or aircraft in flights outside the boundaries of the State, the
quantities consumed within and without the State to be determined by the
flight logs of each trip and the average consumption of motor fuel per
hour per month by each aeroplane or aircraft. If the applicant for refund
includes with such application a statement that the fuel was used for
agricultural purposes, and an authorization for the Commissioner of
Motor Vehicles to direct payment to the Agricultural Research and Educa-
tion Commission of an amount equal to one-sixth of the refund approved
for payment, such payment shall be made and a refund of five cents per
gallon on all such motor fuel shall be made to the person paying such tax.
In the absence of such statement and authorization, the entire amount of
the tax shall be made to the person paying such tax. On any island in this
State on which no motor vehicle is operated upon any public highways,
streets or alleys, the refund provided for by this section may be made to
the merchant selling such motor fuel to the consumer.

§ 58-719. (1) Any person who shall buy in quantities of five gallons
or more at any time any motor fuel for the purpose of operating or pro-
pelling unlicensed motor vehicles and other unlicensed equipment used for
agricultural purposes, on which motor fuel the tax or taxes imposed by
this chapter shall have been paid, shall be refunded such tax or taxes paid
by such person in accordance with the provisions of § 58-715.
__ (2) The owner or lessee of any motor vehicle, whether it is registered
and licensed under the provisions of chapter 3 of Title 46 or not, shall be
entitled to fuel tax refunds, under the provisions of this * section, on all
motor fuel used in the operation of such vehicle while it is being used
exclusively for agricultural or horticultural purposes on lands owned or
leased by the owner or lessee of such vehicle and not operated on or over
any public highway for any purpose other than for the purpose of moving
it in the manner and for the purposes hereinbefore authorized; provided,
the owner or lessee of any motor vehicle which has been licensed under
the provisions of chapter 3 of Title 46 shall not be entitled to fuel tax
refunds for fuel used in such licensed motor vehicle until he has delivered
the license tags furnished for the vehicle to the clerk of the circuit court
of his county, who shall issue a receipt therefor and be entitled to a fee of
twenty-five cents, or to the nearest office issuing licenses, the agent in
charge of which shall likewise issue a receipt therefor, but without charge.
The owner or lessee of such motor vehicle shall be entitled to fuel tax
refund as above provided on fuel used in the operation of such vehicle for
such time as such tags are left with such clerk or agent. The owner or
lessee may surrender the receipt to the clerk or agent at any time, who
ct ‘lia return the tags and notify the Commissioner of Motor

ehicles.

§ 58-730. After providing for the refunds under this chapter, the
Commissioner shall promptly pay all taxes and fees collected by him under
this chapter 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 Highway System and for the con-
struction or maintenance of the roads and projects comprising the second-
ary system of State highways and shall be applied to no other purpose,
except that:

(1) There may be paid out of this fund as a contribution towards the
construction, reconstruction or maintenance of streets in cities and towns
such sums as may be provided by law,

(2) Such sums out of such funds may be expended for the operation
and maintenance of the State Highway Department and the Division of
Motor Vehicles as may be provided by law,

(3) The Governor is hereby authorized to transfer out of such fund
an amount not exceeding twenty-five thousand dollars annually for the
purpose of inspection of gasoline and motor grease measuring and dis-
tributing equipment, and for inspection and analysis of gasoline for
purity, and

(4) 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 im-
provement 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
interest of operators and the public generally.

(5) Such sums shall be paid out of these funds to counties which
have withdrawn from the secondary system of State highways under the
provisions of § 11 of chapter 415 of the Acts of 1932, approved March 31,
1932, and which have not elected to return, as may be provided by law.

(6) The Commissioner of the Division of Motor Vehicles shall also
pay at the rate of one cent per gallon for each and every gallon of motor
fuel on which the refund has ben paid at the rate of five cents per gallon
in accordance with the provisions of §§ 58-715 or 58-719 relating to re-
funds for fuel consumed in tractors and unlicensed equipment used for
agricultural purposes in to the State treasury as a special fund known as
the Agricultural Research and Education Fund to be disbursed upon the
order of the Agricultural Research and Education Commission on warrants
of the Comptroller to make certain refunds and defray the costs of the
research and educational phases of the agricultural program, including
supplemental salary payments to certain employees at the Virginia Poly-
technic Institute, the State Department of Agriculture and the Virginia
Truck Experiment Station including reasonable expenses of the Agrt-
cultural Research and Education Commission. _. ;

§ 58-780.1. Notwithstanding any other provision of law, no portion
of the revenue derived from the taxes levied under §§ 58-628, 58-711, and
58-744 of the Code of Virginia, as amended, except upon aviation fuel,
Piel be expended for any purpose other than the purposes hereinafter set

orth:
(a) The construction and reconstruction of highways, streets, bridges,
tunnels and ferries and the maintenance thereof ; . .

(b) The acquisition of land, bridges, tunnels and ferries required
therefor ;

(c) The purchase of equipment required therefor ; .

(d) The employment of such personnel as may be required therefor ;

(e) Structures required in connection with the foregoing; .

(f) Expenditures directly and necessarily required for the foregoing
purposes including retirement of revenue bonds and no other reason.

As used above, the word “revenue” shall be construed to include only
net revenues remaining after the making of any refunds for nonhighway
use of motor fuel or fuels, as defined in §§ 58-687 and 58-732, as now pro-
vided by law, and shall not be construed to mean any revenue from taxes
levied upon aviation fuel and fuel used for agricultural purposes.

The State Comptroller shall not issue any warrant on such revenues
in violation of the provisions of this section.