                                 CODE OF VIRGINIA

CREDIT FOR PAYMENT OF MOTOR FUEL, DIESEL FUEL OR LIQUEFIED GASES TAX (§
58.1-2706)

A. Every motor carrier subject to the road tax shall be entitled to a credit on
such tax on every gallon of motor fuel, diesel fuel and liquefied gases
purchased by such carrier within the Commonwealth for use in its operations
either within or without the Commonwealth and upon which the motor fuel, diesel
fuel or liquefied gases tax imposed by the laws of the Commonwealth has been
paid by such carrier. Evidence of the payment of such tax in such form as may be
required by, or is satisfactory to, the Department shall be furnished by each
carrier claiming the credit herein allowed. The credit for diesel fuel shall be
at a cents per gallon rate equivalent to the tax imposed under subsection B of
&#xA7; 58.1-2217 for the relevant period as converted by the Commissioner to a
cents per gallon tax for purposes of this credit. The credit for all other motor
fuels and liquefied gases shall be at a cents per gallon rate equivalent to the
tax imposed under subsection A of &#xA7; 58.1-2217 for the relevant period as
converted by the Commissioner to a cents per gallon tax for purposes of this
credit.

B. When the amount of the credit to which any motor carrier is entitled for any
quarter exceeds the amount of the tax for which such carrier is liable for the
same quarter, the excess may: (i) be allowed as a credit on the tax for which
such carrier would be otherwise liable for any of the eight succeeding quarters
or (ii) be refunded, upon application, duly verified and presented and supported
by such evidence as may be satisfactory to the Department.

C. The Department may allow a refund upon receipt of proper application and
review. It shall be at the discretion of the Department to determine whether an
audit is required.

D. The refund may be allowed without a formal hearing if the amount of refund is
agreed to by the applicant. Otherwise, a formal hearing on the application shall
be held by the Department after notice of not less than 10 days to the applicant
and the Attorney General.

E. Whenever any refund is ordered it shall be paid out of the Highway
Maintenance and Operating Fund established pursuant to &#xA7; 33.2-1530.

F. Whenever a person operating under lease to a motor carrier to perform
transport services on behalf of the carrier purchases motor fuel, diesel fuel or
liquefied gases relating to such services, such payments or purchases may, at
the discretion of the Department, be considered payment or purchases by the
carrier.

HISTORY: Code 1950, § 58-629; 1952, c. 281; 1956, c. 475; 1960, c. 603; 1972,
c. 490; 1980, c. 227; 1982, c. 671; 1984, c. 675; 1986, c. 553; 1986, Sp. Sess.,
c. 15; 1988, c. 381; 1990, c. 245; 1992, c. 309; 1995, cc. 744, 803; 1996, c.
575; 1999, c. 94; 2007, c. 896; 2013, c. 766.