                                 CODE OF VIRGINIA

EXEMPT ACCESS CARDS; EXEMPT ACCESS CODES (§ 58.1-2228)

A. A licensed distributor, licensed importer or, in the case of aviation jet
fuel, a licensed aviation consumer shall only remove motor fuel from a terminal
by means of a supplier-issued exempt access card or exempt access code if (i)
the motor fuel will be resold to a governmental entity or an organization exempt
from tax under subdivision 2 of &#xA7; 58.1-2226 for a purpose that is exempt
from the tax or (ii) the aviation jet fuel will be used by the aviation consumer
or resold to a licensed aviation consumer. The use of such exempt access card or
exempt access code shall constitute a representation by the licensed
distributor, licensed importer or licensed aviation consumer that the removal of
the motor fuel is permitted. A supplier shall be authorized to rely on this
representation. A licensed distributor or licensed importer who does not resell
motor fuel removed from a terminal by means of an exempt access card or exempt
access code to an exempt governmental unit or an organization exempt from tax
under subdivision 2 of &#xA7; 58.1-2226 is liable for any tax due on the fuel. A
licensed distributor or licensed importer who does not resell aviation jet fuel
removed from a terminal by means of an exempt access card or exempt access code
to a licensed aviation consumer is liable for any tax due on the aviation jet
fuel.

B. A supplier who issues to, or authorizes another person to issue to, another
person an exempt access card or an exempt access code that enables the person to
buy motor fuel without paying the tax on the fuel shall determine if the person
is exempt from the tax or, in the case of aviation jet fuel, is a licensed
aviation consumer allowed to purchase aviation jet fuel without payment of tax.
A supplier is liable for tax due on motor fuel purchased at retail by use of an
exempt access card or an exempt access code issued to a person who is not exempt
from the tax or, in the case of aviation jet fuel, is not a licensed aviation
consumer allowed to purchase aviation jet fuel without payment of tax.

C. A person to whom an exempt access card or exempt access code is issued for
use at a terminal is liable for any tax due on fuel purchased with the exempt
access card or exempt access code for a purpose that is not exempt. A person who
misuses an exempt access card or exempt access code by purchasing fuel with the
card or code for a purpose that is not exempt is liable for the tax due on the
fuel. The provisions of this subsection shall apply to the misuse of a card or
code that allows a person to purchase aviation jet fuel without paying the tax.

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

HISTORY: 2000, cc. 729, 758.