                                 CODE OF VIRGINIA

MONTHLY RECONCILING RETURNS (§ 58.1-2234)

A. A licensed distributor or a licensed importer who deducts exempt sales under
subsection A of § 58.1-2233 or sales of aviation jet fuel to a licensed
aviation consumer under subsection B of § 58.1-2233 when paying tax to a
supplier shall file a monthly reconciling return for the exempt sales and sales
to a licensed aviation consumer. The return shall list the following information
and any other information required by the Commissioner:

   1. The number of gallons for which a deduction was taken during the month, by
   supplier;

   2. The number of gallons sold in exempt sales during the month, by type of
   sale, and the purchasers of the fuel in the exempt sales; and

   3. The number of gallons of aviation jet fuel sold without collection of the
   tax during the month, and the purchasers of the fuel.

B. If the number of gallons for which a licensed distributor or licensed
importer takes a deduction during a month exceeds the number of exempt gallons
sold or, in the case of aviation jet fuel, the number of gallons sold without
collection of the tax, the licensed distributor or licensed importer shall pay
tax on the difference at the rate imposed by &#xA7; 58.1-2217. The licensed
distributor or licensed importer shall not be allowed a percentage discount on
any tax payable under this subsection.

C. If the number of gallons for which a licensed distributor or licensed
importer takes a deduction during a month is less than the number of exempt
gallons sold or, in the case of aviation jet fuel, is less than the number of
gallons sold without collection of the tax, the Commissioner shall refund the
amount of tax paid on the difference. The Commissioner shall reduce the amount
of the refund by the amount of the percentage discount received on the fuel.

HISTORY: 2000, cc. 729, 758.