CHAPTER 398

An Act to amend and reenact §§ 58-715 as amended, 58-732 as amended,
98-733 and 58-744 as amended, of the Code of Virginia, relating to
Motor Fuels Tax refunds, Special Fuels Tax Act definitions, rate of
tax, use of tax proceeds, and to amend the Code of Virginia by adding
u section numbered 58-758.8, providing certain refunds.

(fH 110]

Approved March 30, 1960

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-715 as amended, 58-732 as amended, 58-733 and 58-744
as amended, of the Code of Virginia, be amended and reenacted, and that
the Code of Virginia be amended by adding a section numbered 58-753.3,
the amended and new sections being 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 pro-
pelling boats, ships, stationary gas engines, tractors used for agricultural
purposes, buses owned and operated by a county or the school board there-
of while being used to transport children to and from public schools, equip-
ment 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 exclu-
sively 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 commercial use, except in motor vehicles oper-
ated, 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 pur-
chased in this State and consumed in aeroplanes or aircraft in flights out-
side the boundaries of the State, the quantities consumed within and with-
out the State to be determined by the flight logs of each trip and the aver-
age consumption of motor fuel per hour per month by each aeroplane or
aircraft. On and after July one, nineteen hundred sixty-one, with respect
to all motor fuel and other fuels as are subject to the tax imposed by Chap.
14 (§ 58-781 et seq.) of this Title purchased in this State and consumed
in aeroplanes or aircraft in flights over and within the boundaries of this
State, a refund in the following graduated amounts shall be made to each
user of such fuel. The quantity of such fuel used in aircraft subject to
graduated refunds shall accumulate to each user throughout each fiscal
year beginning on July first of each year.

The amount of the refund with respect to all motor fuel and other
fuels as are subject to the tax wmposed by Chap. 14 (§ 58-731 et seq.)
of this title used by any person in flights over and within the boundaries
of this State, with respect to the accumulated usage of such fuels during
each fiscal year, shall be:

(1) On each gallon of such fuel so used less than one hundred thou-
sand gallons, a refund per gallon equal to the amount of the tax per gallon
less four cents, the intention being that the State shall retain four cents
tax per gallon;

(2) On each gallon of such fuel so used more than one hundred
thousand gallons and less than two hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less two cents, the
intention being that the State shall retain two cents tax per gallon;

(3) On each gallon of such fuel so used more than two hundred
thousand gallons and less than three hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less one cent, the
intention being that the State shall retain one cent tax per gallon;

(4) On each gallon of such fuel so used more than three hundred
thousand gallons and less than four hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less one-half cent, the
intention being that the State shall retain one-half cent tax per gallon;

(5) On each gallon of such fuel so used more than four hundred
thousand gallons, a refund per gallon equal to the amount of the tax per
gallon less one-quarter cent, the intention being that the State shall retain
one-quarter cent tax per gallon. |

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 Education 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.

§ 58-732. The following words, terms and phrases as used in this
chapter are, for the purposes thereof, hereby defined as follows:

(1) ‘“Commissioner’”’ shall mean the Commissioner of the Division of
Motor Vehicles.

(2) “Division” shall mean the Division of Motor Vehicles, acting
directly or through its duly authorized officers and agents.

(3) “Motor vehicles” shall mean and include all vehicles, engines,
machines or mechanical contrivances, which are propelled by internal
combustion engines or motors upon which or by which any person or
property is or may be transported or drawn upon a public highway.

(8a) “Aircraft” shall mean any kind of vehicle designed for naviga-
tion in the air.

(4) “Fuels” shall mean and include all combustible gases and liquids,
used or intended for use in an internal combustion engine or motor for the
generation of power to propel motor vehicles on the public highways in-
cluding all types of fuel used in any type of aircraft, rocket or similar
device, except such fuels as are subject to the tax imposed by chap. 13
(§ 58-686 et seq.) of this title.

(5) “Highway” shall mean and include every way or place of what-
ever nature open to the use of the public for purposes of vehicular travel
in this State, including the streets and alleys in towns and cities.

(6) “Person” shall mean and include natural persons and partner-
ships, firms, associations and corporations.

(7) “Use” shall mean and include, in addition to its original meaning,
the receipt of fuel by any person into an aircraft or a motor vehicle or
into a receptacle from which fuel is supplied by any person to his own or
other aircraft or motor vehicles.
(7a) “User” shall mean and include any person who owns or operates
any aircraft or Diesel propelled motor vehicle or vehicles licensed under
the laws of the Commonwealth of Virginia and who does not maintain
storage facilities for fueling such aircraft or vehicles. The Commissioner
may, by regulation, require all such users to be licensed hereunder.

(8) ‘“User-seller’” means any person who maintains storage facilities
in excess of one hundred gallons and stores fuel therein, and who dispenses
such fuel into the fuel tanks of, or attached to, aircraft or motor vehicles
and shall include any such person who so dispenses fuel for consumption
in such aircraft or motor vehicles owned, leased or operated by him.

(9) “Supplier” means any person who sells or delivers fuel to a user-
seller as herein defined for resale or use; and any person who imports fuel
into the State other than in the usual tank or receptacle connected with
the engine of the motor vehicle in the operation of which the fuel is to be
consumed, and uses the same in a motor vehicle owned or operated by such
person ; and any person who sells or delivers any fuel for resale for use
in aircraft.

(10) “Peddler” means any person who neither owns nor operates
stationary storage facilities, and who transports fuel from place to place
in any vehicle having thereon any tank or other container of more than
one hundred gallons capacity, and sells or offers to sell fuel and deliver
the same from such vehicle; provided, that any such person who sells fuel
to any user-seller or user as herein defined shall be deemed a supplier and
as such be subject to all applicable provisions of this chapter.

(11) “Liquid” means any substance which is liquid at temperatures
in excess of 60° F. and a pressure of 14.7 pounds per square inch absolute.

(12) “Aviation fuel” means a fuel designed for use in the operation
of aircraft and sold or used for that purpose.

§ 58-733. The tax imposed by this chapter is levied for the purpose
of providing revenue to be used by this State to defray in whole or in part
the cost of construction, reconstruction and maintenance of the public
highways of this State and the regulation of traffic thereon, and for no
other purpose except that the Commissioner of the Division of Motor Ve-
hicles 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 1s proposed shall, have access, and for the promotion of aviation
in the interest of operators and the public generally.

§ 58-744. A tax at the rate of six cents per gallon is hereby imposed
upon all fuel sold or delivered by any supplier to any licensed user-seller,
or used by any such supplier in any aircraft or motor vehicle owned,
leased, or operated by him, or delivered by such supplier directly into the
fuel supply tank of an aircraft or a motor vehicle, or imported by a user-
seller into, or acquired tax free by a user-seller or user in this State for re-
sale or use for the propulsion of an aircraft or a motor vehicle, including
all types of fuel used or sold for use in any type of aircraft.

Except that fuel sold to the United States or any of the governmen-
tal agencies thereof or to the State of Virginia or any political subdivi-
sion thereof shall not be subject to tax hereunder.

§ 58-7538.8. Any person who shall buy, in quantities of five gallons or
more at any one time, any special fuel for the purpose of operating or pro-
pelling any aircraft on which special fuel the tax or taxes imposed by this
chapter shall have been paid, shall be allowed a partial refund on each
gallon of special fuel purchased within the State and consumed in any
atrcraft in flights over and within the boundaries of this State, which
partial refund per gallon of such fuel so used shall be equal to the tax per
gallon less four cents, the intention being that the State shall retain four
cents tax per gallon; and a refund of the full tax paid shall be made on
all special fuel purchased in this State and consumed in 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 special fuel per hour per month by each aircraft.
On and after July one, nineteen hundred sixty-one, with respect to all fuels
taxable under this chapter and all motor fuels as are subject to the tax
imposed by Chapter 18 (§ 58-686 et seq.) of this title purchased in this
State and consumed in aeroplanes or aircraft in flights over and within
the boundaries of this State, a refund in the following graduated amounts
shall be made to each user of such fuel. The quantity of such fuel used in
aircraft subject to graduated refunds shall accumulate to each user
throughout each fiscal year beginning on July first of each year. The
amount of the refund with respect to fuels taxable under this chapter and
all motor fuels as are subject to the tax imposed by Chapter 18 (§ 58-686
et seq.) of this title used by any person in flights over and within the
boundaries of this State, with respect to each fiscal year’s accumulated
usage of those fuels, shall be:

(1) On each gallon of such fuel so used less than one hundred thou-
sand gallons, a refund per gallon equal to the amount of the tax per gallon
less four cents, the intention being that the State shall retain four cents
tax per gallon;

(2) On each gallon of such fuel so used more than one hundred thou-
sand gallons and less than two hundred thousand gallons, a refund per
gallon equal to the amount of the tax per gallon less two cents, the inten-
tion being that the State shall retain two cents tax per gallon;

(3) On each gallon of such fuel so used more than two hundred thou-
sand gallons and less than three hundred thousand gallons, a refund per
gallon equal to the amount of the tax per gallon less one cent, the inten-
tion being that the State shall retain one cent tax per gallon;

(4) On each gallon of such fuel so used more than three hundred
thousand gallons and less than four hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less one-half cent,
the intention being that the State shall retain one-half cent tax per gallon;

(5) On each gallon of such fuel so used more than four hundred
thousand gallons, a refund per gallon equal to the amount of the tax per
gallon less one-quarter cent, the intention being that the State shall retain
one-quarter cent tax per gallon.

Every person who is subject to payment to the State of the tax on
aviation fuel under this chapter shall attach a statement 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.

2. An emergency exists and this act shall be in force from the time of

its passage.