                                 CODE OF VIRGINIA

DUTIES OF PROVIDER OF ALTERNATIVE FUEL AS TRUSTEE (§ 58.1-2257)

A. All tax payments due to the Commonwealth received by a provider of
alternative fuel pursuant to &#xA7; 58.1-2252 shall be held by the provider of
alternative fuel as trustee in trust for the Commonwealth, and a provider of
alternative fuel has a fiduciary duty to remit to the Commissioner the amount of
tax received by the provider of alternative fuel. A provider of alternative fuel
shall be liable for the taxes paid to him.

B. A provider of alternative fuel shall notify a bulk user of alternative fuel
or retailer of alternative fuel who has posted a bond in accordance with &#xA7;
58.1-2246 and who received alternative fuel from the provider of alternative
fuel during a reporting period of the number of taxable gallons or equivalent
taxable gallons received. The provider of alternative fuel shall give this
notice after the end of each reporting period and before the licensee is
required to remit to the provider of alternative fuel the amount of tax due on
the fuel.

C. A provider of alternative fuel shall notify the Commissioner within ten
business days after a return is due of any licensed bulk user of alternative
fuel or retailer of alternative fuel who (i) has posted a bond in accordance
with &#xA7; 58.1-2246 and (ii) did not pay the tax due the provider of
alternative fuel when the provider filed his return. The notice shall be
transmitted to the Commissioner in the form required by the Commissioner.

D. A provider of alternative fuel who receives a payment of tax shall not apply
the payment to a debt that the person making the tax payment owes to the
provider of alternative fuel for alternative fuel purchased from the provider of
alternative fuel.

HISTORY: 2000, cc. 729, 758.