2006 Code of Virginia § 58.1-2228 - Exempt access cards; exempt access codes

58.1-2228. Exempt access cards; exempt access codes.

A. A licensed distributor, licensed importer or, in the case of aviation jetfuel, a licensed aviation consumer shall only remove motor fuel from aterminal by means of a supplier-issued exempt access card or exempt accesscode if (i) the motor fuel will be resold to a governmental entity or anorganization exempt from tax under subdivision 2 of 58.1-2226 for a purposethat is exempt from the tax or (ii) the aviation jet fuel will be used by theaviation consumer or resold to a licensed aviation consumer. The use of suchexempt access card or exempt access code shall constitute a representation bythe licensed distributor, licensed importer or licensed aviation consumerthat the removal of the motor fuel is permitted. A supplier shall beauthorized to rely on this representation. A licensed distributor or licensedimporter who does not resell motor fuel removed from a terminal by means ofan exempt access card or exempt access code to an exempt governmental unit oran organization exempt from tax under subdivision 2 of 58.1-2226 is liablefor any tax due on the fuel. A licensed distributor or licensed importer whodoes not resell aviation jet fuel removed from a terminal by means of anexempt access card or exempt access code to a licensed aviation consumer isliable for any tax due on the aviation jet fuel.

B. A supplier who issues to, or authorizes another person to issue to,another person an exempt access card or an exempt access code that enablesthe person to buy motor fuel without paying the tax on the fuel shalldetermine if the person is exempt from the tax or, in the case of aviationjet fuel, is a licensed aviation consumer allowed to purchase aviation jetfuel without payment of tax. A supplier is liable for tax due on motor fuelpurchased at retail by use of an exempt access card or an exempt access codeissued to a person who is not exempt from the tax or, in the case of aviationjet fuel, is not a licensed aviation consumer allowed to purchase aviationjet fuel without payment of tax.

C. A person to whom an exempt access card or exempt access code is issued foruse at a terminal is liable for any tax due on fuel purchased with the exemptaccess card or exempt access code for a purpose that is not exempt. A personwho misuses an exempt access card or exempt access code by purchasing fuelwith the card or code for a purpose that is not exempt is liable for the taxdue on the fuel. The provisions of this subsection shall apply to the misuseof a card or code that allows a person to purchase aviation jet fuel withoutpaying the tax.

D. The tax liability imposed by this section shall be in addition to anyother penalty imposed pursuant to this chapter.

(2000, cc. 729, 758.)