                                 CODE OF VIRGINIA

PERMISSIVE SUPPLIER ELECTION TO COLLECT TAX ON OUT-OF-STATE REMOVALS (§
58.1-2210)

A. An out-of-state supplier who is not required to be licensed under this
chapter may elect to obtain a license and thereby become a permissive supplier.
An out-of-state supplier who does not make this election shall not act as a
permissive supplier for motor fuel that is removed at a terminal in another
state and has Virginia as its destination state.

B. An out-of-state supplier who elects to be licensed as a permissive supplier
shall comply with (i) the same requirements imposed on a supplier and (ii) all
of the following with respect to motor fuel that is removed by the permissive
supplier at a terminal located in another state and has Virginia as its
destination state:

   1. Collect the tax due the Commonwealth on the fuel;

   2. Waive any defense that the Commonwealth lacks jurisdiction to require the
   supplier to collect the tax due the Commonwealth on the motor fuel under this
   chapter;

   3. Report and pay the tax due on the fuel in the same manner as if the removal
   had occurred at a terminal located in Virginia;

   4. Keep records of the removal of the fuel and submit to audits concerning the
   fuel as if the removal had occurred at a terminal located in Virginia; and

   5. Report sales by the supplier to a person who is not licensed in the state
   where the removal occurred if the destination state is Virginia.

C. An out-of-state supplier who makes the election allowed by this section (i)
acknowledges that the Commonwealth imposes the requirements listed in subsection
B on the supplier under its general police power and (ii) submits to the
jurisdiction of the Commonwealth only for purposes related to the administration
of this chapter.

HISTORY: 2000, cc. 729, 758.