General Information
When is tax imposed?
Fuels tax is imposed as the fuels leave the terminal rack. The terminal rack is the point at which fuels physically leave a terminal and are delivered into a tank truck, rail car, or other means of transfer. The only exception is when fuels are imported into Virginia by ways other than the terminal transfer system or when fuels are blended in Virginia outside the terminal transfer system. In these cases, taxes are imposed upon import or blending.
If your business operates at the terminal rack or serves as an importer, you must remit the taxes to DMV.
What are the categories of fuel in Virginia?
Virginia divides fuels into two categories: motor fuels and alternative fuels.
- Motor fuels include gasoline, diesel fuels, blended fuels, and aviation fuels.
- Alternative fuels are defined as a combustible gas, liquid, or other energy source that can be used to generate power to operate a highway vehicle and that are not motor fuels.
What are the fuel tax rates in Virginia?
As of July 1, 2007, the following are the fuel tax rates in Virginia.
| Fuel Type | Tax Rate |
|---|---|
| Gasoline/Gasohol | Seventeen and one-half cents per gallon (.175) |
| Diesel | Seventeen and one-half cents per gallon (.175) |
| Blended Fuels | Seventeen and one-half cents per gallon (.175) |
| Aviation Fuels | Five cents per gallon (.05) |
| Alternative Fuels | Seventeen and one-half cents per gallon (.175) |
What fees are collected with the fuels tax?
In addition to the fuels tax, a Storage Tank Fee (.006) is collected on each gallon of the following fuels sold and delivered or used in the Commonwealth of Virginia.
- Gasoline
- Aviation gasoline
- Diesel fuels (including dyed diesel fuel)
- Blended fuel; and
- Heating oil
The storage tank fee will not be imposed on these fuels when they are sold and delivered to the United States government for exclusive use. In addition, the storage tank fee will not be imposed on alternative fuel or aviation jet fuel.
Who needs a license?
If you are buying or selling fuel in bulk in Virginia, or if you are importing or exporting fuel in bulk, you may be required to obtain a license. Distributors and Permissive Suppliers may elect to be licensed.Who pays the tax to DMV?
Suppliers, Importers, Blenders, Aviation Consumer, Alternative Fuel Providers, Retailers of Alternative Fuel, and Bulk Users of Alternative Fuel pay the fuels tax to DMV.
Who files fuel activity information?
All persons issued a Virginia fuels tax license are required to file fuel activity information, EXCEPT:
- Exporters
- Retailers of Undyed Diesel, and
- Bulk Users of Undyed Diesel.
When are the fuel activity information and the payments due?
Fuel activity information and tax payments are due in the second month following the month the fuel was sold, imported, or purchased.
