                                 CODE OF VIRGINIA

BACKUP TAX; LIABILITY (§ 58.1-2225)

A. There is hereby levied a tax at the rate specified in § 58.1-2217 on the
following:

   1. Dyed diesel fuel that is used to operate a highway vehicle for a taxable
   use other than a use allowed under 26 U.S.C. &#xA7; 4082;

   2. Motor fuel that was allowed an exemption from the motor fuel tax and was
   then used for a taxable purpose; and

   3. Motor fuel that is used to operate a highway vehicle after an application
   for a refund of tax paid on the motor fuel is made or allowed on the basis
   that the motor fuel was used for an off-highway purpose.

B. The operator of a highway vehicle that uses motor fuel that is taxable under
this section is liable for the tax. If the highway vehicle that uses the fuel is
owned by or leased to a motor carrier, the operator of the highway vehicle and
the motor carrier shall be jointly and severally liable for the tax. If the end
seller of motor fuel taxable under this section knew or had reason to know that
the motor fuel would be used for a purpose that is taxable under this section,
the operator of the highway vehicle and the end seller shall be jointly and
severally liable for the tax.

C. The tax liability imposed by this section shall be in addition to any other
penalty imposed pursuant to this chapter.

D. Persons diverting motor fuel into Virginia that had an original destination
outside of Virginia shall incur liability for the tax levied for such motor
fuel, as specified in &#xA7; 58.1-2217, and shall be subject to the reporting
and payment requirements set forth in subsection E of &#xA7; 58.1-2230.

HISTORY: 2000, cc. 729, 758; 2003, c. 781.