SB 896 — Motor vehicle fuels; sales tax in certain areas of the Commonwealth, price floor.

SESSION history | hilite | pdf | print version 18107415D18108108D SENATE BILL NO.

896 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the HouseJoint Conference Committee on AppropriationsMarch on8, February 21, 2018) (Patron(Patrons Prior to Substitute--SenatorSubstitute--Wagner Wagner)and Petersen [SB 140]) A BILL to amend and reenact §§ 58.1-2292, 58.1-2295, as it is currently effective, 58.1-2299, 58.1-2299.10, and 58.1-2299.14 of the Code of Virginia, relating to the motor vehicle fuels sales tax in certain regions of the Commonwealth;

"Gasoline" means the same as that term is defined in § 58.1-2201.

"Gasoline" means the same as that term is defined in § 58.1-2201.

"Retail dealer" means any person, including a distributor, who that sells fuels to a consumer or to any person for any purpose other than resale.

In any case in which the tax is imposed pursuant to clause (ii)(ii), such tax shall be effective beginning on the July 1 immediately following the calendar year in which all of the criteria have been met.

In any such sale to a retail dealer in which the distributor and the retail dealer are the same person, the sales price charged by the distributor shall be the cost price to the distributor of the fuel statewide average distributor price of a gallon of unleaded regular gasoline as determined by the Commissioner pursuant to subsectionsubdivision C.C 1.

The tax shall be imposed on each gallon of diesel fuel sold by a distributor to a retail dealer for retail sale in any such county or city at a rate of 2.1 percent of the statewide average distributor price of a gallon of diesel fuel as determined by the Commissioner pursuant to subsectionsubdivision D.C 2.

To determine the statewide average distributor price of a gallon of unleaded regular gasoline:

TheTo determine the statewide average distributor price of a gallon of unleaded regular gasoline, the Commissioner shall use the period from June 1 to November 30, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning January 1 and ending June 30, inclusive.

The Commissioner shall use the period from December 1 to May 31, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning July 1 and ending December 31, inclusive.

In no case shall the statewide average distributor price of a gallon of unleaded regular gasoline determined for the purposes of this section be less than the statewide average wholesale price of a gallon of unleaded regular gasoline on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date.

IfTo determine the statewide average distributor price of a gallon of unleadeddiesel regularfuel, gasolinethe forCommissioner ashall baseuse the period isfrom equalJune 1 to orNovember higher30, thaninclusive, as the statewidebase averageperiod distributorfor pricethe useddetermination toof set the rate of the tax for the immediately precedingfollowing applied period,period thebeginning CommissionerJanuary shall1 setand theending rateJune of30, theinclusive. tax using the statewide average distributor price for the base period.

3.

If the statewide average distributor price of a gallon of unleaded regular gasoline for a base period is lower than the statewide average distributor price used to set the rate of the tax for the immediately preceding applied period, the Commissioner shall continue to set the rate of the tax using the statewide average distributor price that was used to set the rate of the tax for the immediately preceding applied period.

4.

Notwithstanding the provisions of subdivisions 2 and 3, once the statewide average distributor price of a gallon of unleaded regular gasoline reaches an amount equal to or exceeding the statewide average wholesale price of a gallon of unleaded regular gasoline on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date, then the Commissioner shall set the rate of the tax for all future applied periods using the actual average distributor price for the applicable base period.

However, in no case shall the statewide average distributor price used to calculate the rate of the tax for future applied periods be less than the average wholesale price of a gallon of unleaded regular gasoline on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date.

D.

To determine the statewide average distributor price of a gallon of diesel fuel:

1.

The Commissioner shall use the period from June 1 to November 30, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning January 1 and ending June 30, inclusive.

2.In no case shall the statewide average distributor price of a gallon of diesel fuel determined for the purposes of this section be less than the statewide average wholesale price of a gallon of diesel fuel on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date.

IfD. the statewide average distributor price of a gallon of diesel fuel for a base period is equal to or higher than the statewide average distributor price used to set the rate of the tax for the immediately preceding applied period, the Commissioner shall set the rate of the tax using the statewide average distributor price for the base period.

3.

If the statewide average distributor price of a gallon of diesel fuel for a base period is lower than the statewide average distributor price used to set the rate of the tax for the immediately preceding applied period, the Commissioner shall continue to set the rate of the tax using the statewide average distributor price that was used to set the rate of the tax for the immediately preceding applied period.

4.

Notwithstanding the provisions of subdivisions 2 and 3, once the statewide average distributor price of a gallon of diesel fuel reaches an amount equal to or exceeding the statewide average wholesale price of a gallon of diesel fuel on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date, then the Commissioner shall set the rate of the tax for all future applied periods using the actual average distributor price for the applicable base period.

However, in no case shall the statewide average distributor price used to calculate the rate of the tax for future applied periods be less than the average wholesale price of a gallon of diesel fuel on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date.

E.

F.E.

G.F.

That the Department of Motor Vehicles (Department)(the Department) shall develop guidelines, with the input of relevant stakeholders, to determine the distributor charges, as defined by § 58.1-2292 of the Code of Virginia, as amended by this act, to be added to the wholesale price of a gallon of fuel in order to establish the statewide average distributor price of a gallon of fuel pursuant to § 58.1-2295 of the Code of Virginia, as amended by this act.

3.

That the Commissioner of the Department of Motor Vehicles shall calculate the statewide average distributor cost, as defined by § 58.1-2292 of the Code of Virginia, as amended by this act, of a gallon of unleaded regular gasoline on June 1, 2018.

Such distributor cost shall be used for the imposition of the tax set forth in subdivision B 1 of § 58.1-2295 of the Code of Virginia, as amended by this act, for the applied period of July 1, 2018, through December 31, 2018, inclusive.

4.

That the Commissioner of the Department of Motor Vehicles shall calculate the statewide average distributor cost, as defined by § 58.1-2292 of the Code of Virginia, as amended by this act, of a gallon of diesel fuel on June 1, 2018.

Such distributor cost shall be used for the imposition of the tax set forth in subdivision B 2 of § 58.1-2295 of the Code of Virginia, as amended by this act, for the applied period of July 1, 2018, through December 31, 2018, inclusive.