58.1-2290 - Floorstocks tax. - Virginia Statutes

§ 58.1-2290. Floorstocks tax.

A. There is hereby levied a floorstocks tax on taxable motor fuel andalternative fuel held in storage as of the close of the business daypreceding January 1, 2001. For the purposes of this section, "close of thebusiness day" means the time at which the last transaction has occurred forthat day. The floorstocks tax shall be payable by the person in possession ofthe fuel on January 1, 2001. The amount of the floorstocks tax on motor fuelshall be equal to the sum of (i) the tax rate specified by § 58.1-2217 forthe type of fuel and (ii) the storage tank fee rate specified under §62.1-44.34:13, multiplied by the gallons in storage as of the close of thebusiness day preceding January 1, 2001. The amount of the floorstocks tax onalternative fuel shall be equal to the tax rate specified by subsection A of§ 58.1-2249, multiplied by the gallons in storage as of the close of thebusiness day preceding January 1, 2001.

B. Persons in possession of taxable fuel in storage as of the close of thebusiness day preceding January 1, 2001, shall:

1. Take an inventory at the close of the business day preceding January 1,2001, to determine the gallons in storage for purposes of determining thefloorstocks tax;

2. Report the gallons listed in subsection A, on forms provided by theCommissioner, not later than February 1, 2001; and

3. Remit the tax levied under this section no later than July 1, 2001.

In the event the tax due is paid to the Department on or before February 1,2001, the person remitting the tax may deduct from their submission tenpercent of the tax liability due.

C. In determining the amount of floorstocks tax due under this section, theperson may exclude the amount of taxable motor fuel in dead storage. "Deadstorage" means the amount of taxable motor fuel that will not be pumped outof a storage tank because the fuel is below the mouth of the draw pipe. Suchperson may assume that the amount of motor fuel in dead storage is 200gallons for a tank with a capacity of less than 10,000 gallons and 400gallons for a tank with a capacity of 10,000 gallons or more. Alternatively,the amount of motor fuel in dead storage in a tank may be computed by usingthe manufacturer's conversion table for the tank and number of inches betweenthe bottom of the tank and the mouth of the draw pipe. If the conversiontable method is used to compute the amount of motor fuel in dead storage, thedistance between the bottom of the tank and the mouth of the draw pipe willbe assumed to be six inches, unless otherwise established.

(2000, cc. 729, 758.)