§ 58.1-2290. Floorstocks tax
A. There is hereby levied a floorstocks tax on taxable motor fuel and alternative fuel held in storage as of the close of the business day preceding January 1, 2001. For the purposes of this section, "close of the business day" means the time at which the last transaction has occurred for that day. The floorstocks tax shall be payable by the person in possession of the fuel on January 1, 2001. The amount of the floorstocks tax on motor fuel shall be equal to the sum of (i) the tax rate specified by § 58.1-2217 for the 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 the business day preceding January 1, 2001. The amount of the floorstocks tax on alternative 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 the business day preceding January 1, 2001.
B. Persons in possession of taxable fuel in storage as of the close of the business 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 the floorstocks tax;
2. Report the gallons listed in subsection A, on forms provided by the Commissioner, 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 ten percent of the tax liability due.
C. In determining the amount of floorstocks tax due under this section, the person may exclude the amount of taxable motor fuel in dead storage. "Dead storage" means the amount of taxable motor fuel that will not be pumped out of a storage tank because the fuel is below the mouth of the draw pipe. Such person may assume that the amount of motor fuel in dead storage is 200 gallons for a tank with a capacity of less than 10,000 gallons and 400 gallons 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 using the manufacturer's conversion table for the tank and number of inches between the bottom of the tank and the mouth of the draw pipe. If the conversion table method is used to compute the amount of motor fuel in dead storage, the distance between the bottom of the tank and the mouth of the draw pipe will be assumed to be six inches, unless otherwise established.
(2000, cc. 729, 758.)
Sections: Previous 58.1-2276 58.1-2277 58.1-2278 58.1-2279 58.1-2280 58.1-2281 58.1-2282 58.1-2283 58.1-2284 58.1-2285 58.1-2286 58.1-2287 58.1-2288 58.1-2289 58.1-2290Last modified: April 16, 2009