                                 CODE OF VIRGINIA

LIABILITY FOR TAX ON BLENDED FUEL (§ 58.1-2222)

A. The tax imposed pursuant to &#xA7; 58.1-2217 at the point that blended fuel
is made in Virginia shall be payable by the blender. The number of gallons of
blended fuel on which the tax is payable is the difference between the number of
gallons of blended fuel made and the number of gallons of previously taxed motor
fuel used to make the blended fuel.

B. The tax imposed pursuant to &#xA7; 58.1-2217 at the point that blended fuel
is imported to Virginia shall be payable by the importer.

C. The following blended fuel shall be considered to have been made by the
supplier of gasoline or undyed diesel fuel used in the blend:

   1. An in-line-blend made by combining a liquid with gasoline or undyed diesel
   fuel as the fuel is delivered at a terminal rack into the motor fuel storage
   compartment of a transport truck or a tank wagon; and

   2. A kerosene splash-blend made when kerosene is delivered into a motor fuel
   storage compartment of a transport truck or a tank wagon and undyed diesel
   fuel is also delivered into the same storage compartment, if the buyer of the
   kerosene notified the supplier before or at the time of delivery that the
   kerosene would be used to make a splash-blend.

HISTORY: 2000, cc. 729, 758.