2006 Code of Virginia § 58.1-2209 - Supplier election to collect tax on out-of-state removals

58.1-2209. Supplier election to collect tax on out-of-state removals.

A. An applicant for a license as a supplier may elect on the application tocollect the tax due the Commonwealth on motor fuel that is removed at aterminal located in another state and has Virginia as its destination state.The Commissioner shall provide for this election on the application form. Asupplier who makes the election allowed by this section shall be an electivesupplier. A supplier who does not make the election allowed by this sectionshall be an in-state-only supplier. A supplier who does not make the electionon the application for a supplier's license may make the election later bycompleting an election form provided by the Commissioner. A supplier who hasnot made the election shall not act as an elective supplier for purposes ofthis chapter.

B. A supplier who makes the election allowed by this section shall complywith all of the following with respect to motor fuel that is removed at aterminal located in another state and has Virginia as its destination state:

1. Collect the tax due the Commonwealth on the fuel;

2. Waive any defense that the Commonwealth lacks jurisdiction to require thesupplier to collect the tax due the Commonwealth on the fuel under thischapter;

3. Report and pay the tax due on the fuel in the same manner as if theremoval had occurred at a terminal located in Virginia;

4. Keep records of the removal of the fuel and submit to audits concerningthe fuel as if the removal had occurred at a terminal located in Virginia; and

5. Report sales by the supplier to a person who is not licensed in the statewhere the removal occurred if the destination state is Virginia.

C. A supplier who makes the election allowed by this section (i) acknowledgesthat the Commonwealth imposes the requirements listed in subsection B of thissection on the supplier under its general police power and (ii) submits tothe jurisdiction of the Commonwealth only for purposes related to theadministration of this chapter.

(2000, cc. 729, 758.)