CHAPTER 603

An Act to amend and reenact §§ 58-628 as amended, 58-629 as amended,
58-711, 58-715 as amended, 58-780 as amended and 58-744 as amended,
of the Code of Virginia; and to amend the Code of Virginia by adding
thereto in Title 58 a chapter numbered 14.1, consisting of a new sec-
tion numbered 58-757.1, all relating to road taxes and taxes upon the
sale and use of motor fuels, and to credits, refunds, and uses of such
taxes paid.

[S 26}

Approved April 1, 1960

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-628 as amended, 58-629 as amended, 58-711, 58-715 as
amended, 58-730 as amended and 58-744 as amended, of the Code of Vir-
ginia, be amended and reenacted as follows:

§ 58-628. Every motor carrier of passengers, except urban and sub-
urban bus lines, shall pay a road tax equivalent to * seven cents per gallon,
and every motor carrier of property shall pay a road tax equivalent to
* nine cents per gallon calculated on the amount of gasoline or liquefied
gases (which would not exist as liquids at a temperature of 60°F and a
pressure of 14.7 pounds per square inch absolute), or other motor fuel
used in its operations within this State. Urban and suburban bus lines
which are hereby defined as bus lines the majority of whose passengers
use the buses for traveling a distance of not exceeding forty mules, meas-
ured one way, on the same day between their places of abode and their
places of work, shopping areas, or schools, shall pay a road tax equivalent
to six cents per gallon calculated on the amount of gasoline or liquefied
gases (which would not exist as liquids at a temperature of 60°F and a
pressure of 14.7 pounds per square inch absolute), or other motor fuel
used in their operations within this State. Notwithstanding any other pro-
visions of law, after (1) the refunds authorized by law and (2) adminis-
trative expenses authorized by law, one-seventh of the revenue derived
from the tax hereby imposed shall be transferred to a special fund desig-
mated “The Primary and Secondary Highway Emergency Fund’, one-half
of which fund shall be allocated to the secondary system of highways as
provided by law and one-half of which fund shall be allocated to the pri-
mary system of highways as provided by law. Provided, however, that
cities and towns and any county having withdrawn its roads from the
secondary system of State highways under the provisions of Section 11 of
Chapter 415 of the Acts of 1982 shall receive their proportionate share of
such special fund as is now provided by law with respect to other motor
fuel tax receipts.
§ 58-629. Every motor carrier subject to the tax hereby imposed
shall be entitled to a credit on such tax equivalent to * seven cents per gal-
lon on all gasoline or other motor fuel purchased by such carrier within
this State for use in its operations either within or without this State and
upon which gasoline or other motor fuel the tax imposed by the laws of
this State has been paid by such carrier. Evidence of the payment of such
tax in such form as may be required by, or is satisfactory to, the Commis-
sion shall be furnished by each such carrier claiming the credit herein
allowed. When the amount of the credit herein provided to which any
motor carrier is entitled for any quarter exceeds the amount of the tax
for which such carrier is liable for the same quarter, such excess may
under regulations of the Commission be allowed as a credit on the tax
for which such carrier would be otherwise liable for any of the four suc-
ceeding quarters; or upon application within one hundred and eighty days
from the end of any quarter, duly verified and presented, in accordance
with regulations promulgated by the Commission and supported by such
evidence as may be satisfactory to the Commission, such excess may be
refunded if it shall appear that the applicant has paid to another state
under a lawful requirement of such state a tax, similar in effect to the tax
herein provided, on the use or consumption in said state of gasoline or
other motor fuel purchased in Virginia, to the extent of such payment to
— other state, but in no case to exceed the rate of * seven cents per
gallon.

The Commission shall not allow such refund except after an audit of
the applicant’s records and shall audit the records of an applicant at least
once a year. Such refund may be allowed without a formal hearing if
the amount thereof is agreed to by the applicant. Otherwise, a formal
hearing on the application shall be held by the Commission after notice
of not less than ten days to the applicant and the Attorney General. When-
ever any refund is ordered it shall be paid out of the highway maintenance
and construction fund.

§ 58-711. There is hereby levied a tax of * seven cents per gallon
on all motor fuel which is sold and delivered or used in this State, includ-
ing all motor fuel sold by or through post exchanges, ship stores, ship
service stores, commissaries, filling stations, licensed traders and other
similar agencies located on United States military or other reservations
within the boundaries of the State, when such fuel is not for the exclu-
sive use of the United States and is not under the protection of the inter-
state 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 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 distribution. The tax herein levied shall
be collected in the manner hereinafter provided. Notwithstanding any
other provision of law, after (1) the refunds authorized by law, and (2)
administrative expenses authorized by law, one-seventh of the revenue
derived from the tax hereby imposed shall be transferred to a special fund
designated “The Primary and Secondary Highway Emergency Fund’’, one-
half of which fund shall be allocated to the secondary system of highways
as provided by law and one-half of which fund shall be allocated to the
primary system of highways as provided by law. Provided, however, that
cities and towns and any county having withdrawn its roads from the sec-
ondary system of State highways under the provisions of Section 11 of
Chapter 415 of the Acts of 1982 shall receive their proportionate share of
such special fund as is now provided by law with respect to other motor
fuel tax receipts.

§ 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 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 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 * three 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 con-
sumed in aeroplanes or aircraft in flights outside the boundaries of the
State, the quantities consumed within and without the State to be deter-
mined 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 appli-
cant for refund includes with such application a statement that the fuel
was used for agricultural purposes, and an authorization for the Com-
missioner of Motor Vehicles to direct payment to the Agricultural Re-
search and Education Commission of an amount equal to one-*seventh
of the refund approved for payment, such payment shall be made and
a refund of *siz 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 pro-
vided for by this section may be made to the merchant selling such motor
fuel to the consumer.

§ 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, recon-
struction or maintenance of the roads and projects comprising the State
Highway System, Interstate System and Secondary 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 opera-
tion 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 * necessary for the purpose of inspection of gasoline and
motor grease measuring and distributing equipment, and for inspection
and analysis of gasoline for purity,

The Commissioner of the Division of Motor Vehicles shal]
also pay, at the rate of * seven cents a gallon, less refunds made in ac-
cordance 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 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 pro-
vided by law, and

(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 been paid at the rate of * siz cents per gallon
In accordance with the provisions of § 58-715 or § 58-719 relating to
refunds for fuel consumed in tractors and unlicensed equipment used
for agricultural purposes into 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 Polytechnic Institute, the State Department of Agriculture and
the Virginia Truck Experiment Station including reasonable expenses
of the Agricultural Research and Education Commission.

§ 58-744. <A tax at the rate of * seven 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 motor vehicle owned,
leased or operated by him, or delivered by such supplier directly into
the fuel supply tank of a motor vehicle, or imported by a user-seller into,
or acquired tax free by a user-seller or user in this State for resale or
use for the propulsion of a motor vehicle.

Except that fuel sold to the United States or any of the govern-
mental agencies thereof or to the State of Virginia or any political sub-
division thereof shall not be subject to tax hereunder.

Notwithstanding any other provision of law, after (1) the refunds
authorized by law, and (2) administrative expenses authorized by law,
one-seventh of the revenue derived from the tax hereby imposed shall be
transferred to a special fund designated “The Primary and Secondary
Highway Emergency Fund’, one-half of which fund shall be allocated to
the secondary system of highways as provided by law and one-half of
which fund shall be allocated to the primary system of highways as pro-
vided by law.

2. That the Code of Virginia be amended by adding thereto in Title 58
a chapter numbered 14.1, consisting of a new section numbered 58-757.1 as

follows:
CHAPTER 14.1

Refunds of Certain Fuel Taxes to Urban and Suburban Bus Lines.

§ 58-757.1. Notwithstanding any other provisions of law, any person,
firm or corporation who purchases motor fuel for consumption in motor
vehicles used in operating urban or suburban bus lines in this State, upon
which motor fuel taxes imposed by the laws of this State have been paid,
shall be entitled to a refund of such motor fuel taxes in excess of six cents
per gallon upon presentation to the Commissioner of an application for
such refund setting forth the fact that such motor fuel was consumed in
motor vehicles while being used in operating urban or suburban bus lines
in this State, which are hereby defined as bus lines the majority of whose
passengers use the buses for travelling a distance of not exceeding forty
miles, measured one way, on the same day between their places of abode
and their places of work, shopping areas or schools.

Any consumer entitled to such refund shall file with the Commissione?
an application in writing duly signed by the applicant, accompanied by a
paid ticket or invoice from the dealer or retailer showing such purchase.
Such application shall set forth the total amount of such fuel so purchased
and used by such consumer in operating urban or suburban bus lines upon
any of the public highways, streets or alleys of this State, and how used.
The Commissioner, upon the presentation of such application and such
paid ticket, invoice or other document, shall pay to such consumer from the
taxes collected on motor fuels a refund of such motor fuel taxes in excess
of six cents per gallon paid on fuels sold, delivered and used as aforesaid.
But the application for refund as provided herein must be filed with the
Commissioner within three months from the date of the sale or invoice
on forms prepared and furnished by the Commissioner.

Except as otherwise provided in this chapter, all provisions of law
applicable to the refund of gasoline taxes and other motor fuel taxes by
the Commissioner shall apply to the refunds authorized by this chapter.
Provided, however, that cities and towns and any county having with-
drawn its roads from the secondary system of State highways under the
provisions of Section 11 of Chapter 415 of the Acts of 1982 shall receive
their proportionate share of such special fund as is now provided by law
with respect to other motor fuel tax receipts.

3. If any part, section, portion or provision of this act or the application
thereof to any motor carrier or circumstance be held invalid by a court
of final resort, such holding shall not affect any part, section, portion, pro-
vision or application of this act which can be given effect without the part,
section, portion, provision or application so held invalid; and to this end,
the parts, sections, portions, provisions and applications hereof are de-
clared severable.

4. This act shall become effective July 1, 1960.