2006 Code of Virginia § 58.1-2259 - Fuel uses eligible for refund

58.1-2259. Fuel uses eligible for refund.

A. A refund of the tax paid for the purchase of fuel in quantities of fivegallons or more at any time shall be granted in accordance with theprovisions of 58.1-2261 to any person who establishes to the satisfactionof the Commissioner that such person has paid the tax levied pursuant to thischapter upon any fuel:

1. Sold and delivered to a governmental entity for its exclusive use;

2. Used by a governmental entity, provided persons operating under contractwith a governmental entity shall not be eligible for such refund;

3. Sold and delivered to an organization described in subdivision 2 of 58.1-2226 or subdivision 2 of 58.1-2250 for its exclusive use in theoperation of an aircraft;

4. Used by an organization described in subdivision 2 of 58.1-2226 orsubdivision 2 of 58.1-2250 for its exclusive use in the operation of anaircraft, provided persons operating under contract with such an organizationshall not be eligible for such refund;

5. Purchased by a licensed exporter and subsequently transported anddelivered by such licensed exporter to another state for sales or use outsidethe boundaries of the Commonwealth if the tax applicable in the destinationstate has been paid, provided a refund shall not be granted pursuant to thissection on any fuel which is transported and delivered outside of theCommonwealth in the fuel supply tank of a highway vehicle or an aircraft;

6. Used by any person performing transportation under contract or lease withany transportation district for use in a highway vehicle controlled by atransportation district created under the Transportation District Act of 1964( 15.2-4500 et seq.) and used in providing transit service by thetransportation district by contract or lease, provided the refund shall bepaid to the person performing such transportation;

7. Used by any private, nonprofit agency on aging, designated by theDepartment for the Aging, providing transportation services to citizens inhighway vehicles owned, operated or under contract with such agency;

8. Used in operating or propelling highway vehicles owned by a nonprofitorganization that provides specialized transportation to various locationsfor elderly or disabled individuals to secure essential services and toparticipate in community life according to the individual's interest andabilities;

9. Used in operating or propelling buses owned and operated by a county orthe school board thereof while being used to transport children to and frompublic school or from school to and from educational or athletic activities;

10. Used by buses owned or solely used by a private, nonprofit, nonreligiousschool while being used to transport children to and from such school or fromsuch school to and from educational or athletic activities;

11. Used by any county or city school board or any private, nonprofit,nonreligious school contracting with a private carrier to transport childrento and from public schools or any private, nonprofit, nonreligious school,provided the tax shall be refunded to the private carrier performing suchtransportation;

12. Used in operating or propelling the equipment of volunteer firefightingcompanies and of volunteer rescue squads within the Commonwealth usedactually and necessarily for firefighting and rescue purposes;

13. Used in operating or propelling motor equipment belonging to counties,cities and towns, if actually used in public activities;

14. Used for a purpose other than in operating or propelling highwayvehicles, watercraft or aircraft;

15. Used off-highway in self-propelled equipment manufactured for a specificoff-road purpose, which is used on a job site and the movement of which onany highway is incidental to the purpose for which it was designed andmanufactured;

16. Proven to be lost by accident, including the accidental mixing of (i)dyed diesel fuel with tax-paid motor fuel, (ii) gasoline with diesel fuel, or(iii) undyed diesel fuel with dyed kerosene, but excluding fuel lost throughpersonal negligence or theft;

17. Used in operating or propelling vehicles used solely for racing othervehicles on a racetrack;

18. Used in operating or propelling unlicensed highway vehicles and otherunlicensed equipment used exclusively for agricultural or horticulturalpurposes on lands owned or leased by the owner or lessee of such vehicles andnot operated on or over any highway for any purpose other than to move it inthe manner and for the purpose mentioned. The amount of refund shall be equalto the amount of the taxes paid less one-half cent per gallon on such fuel soused which shall be paid by the Commissioner into the state treasury to thecredit of the Virginia Agricultural Foundation Fund;

19. Used in operating or propelling commercial watercraft. The amount ofrefund shall be equal to the amount of the taxes paid less one and one-halfcents per gallon on such fuel so used which shall be paid by the Commissionerinto the state treasury to be credited as provided in subsection D of 58.1-2289. If any applicant so requests, the Commissioner shall pay into thestate treasury, to the credit of the Game Protection Fund, the entire taxpaid by such applicant for the purposes specified in subsection D of 58.1-2289. If any applicant who is an operator of commercial watercraft sorequests, the Commissioner shall pay into the state treasury, to the creditof the Marine Fishing Improvement Fund, the entire tax paid by such applicantfor the purposes specified in 28.2-208;

20. Used in operating stationary engines, or pumping or mixing equipment on ahighway vehicle if the fuel used to operate such equipment is stored in anauxiliary tank separate from the fuel tank used to propel the highwayvehicle, and the highway vehicle is mechanically incapable of self-propulsionwhile fuel is being used from the auxiliary tank; or

21. Used in operating or propelling recreational and pleasure watercraft.

B. 1. Any person purchasing fuel for consumption in a solid waste compactingor ready-mix concrete highway vehicle, or a bulk feed delivery truck, wherethe vehicle's equipment is mechanically or hydraulically driven by aninternal combustion engine that propels the vehicle, is entitled to a refundin an amount equal to 35 percent of the tax paid on such fuel. For purposesof this section, a "bulk feed delivery truck" means bulk animal feeddelivery trucks utilizing power take-off (PTO) driven auger or air feeddischarge systems for off-road deliveries of animal feed.

2. Any person purchasing fuel for consumption in a vehicle designed orpermanently adapted solely and exclusively for bulk spreading or spraying ofagricultural liming materials, chemicals, or fertilizer, where the vehicle'sequipment is mechanically or hydraulically driven by an internal combustionengine that propels the vehicle, is entitled to a refund in an amount equalto 55 percent of the tax paid on such fuel.

C. Any person purchasing any fuel on which tax imposed pursuant to thischapter has been paid may apply for a refund of the tax if such fuel wasconsumed by a highway vehicle used in operating an urban or suburban bus lineor a taxicab service. This refund also applies to a common carrier ofpassengers which has been issued a certificate of public convenience andnecessity pursuant to 46.2-2005 and 58.1-2204 providing regular routeservice over the highways of the Commonwealth. No refund shall be grantedunless the majority of the passengers using such bus line, taxicab service orcommon carrier of passengers do so for travel of a distance of not more than40 miles, one way, in a single day between their place of abode and theirplace of employment, shopping areas or schools.

If the applicant for a refund is a taxicab service, he shall hold a validpermit from the Department to engage in the business of a taxicab service. Noapplicant shall be denied a refund by reason of the fee arrangement betweenthe holder of the permit and the driver or drivers, if all other conditionsof this section have been met.

Under no circumstances shall a refund be granted more than once for the samefuel. The amount of refund under this subsection shall be equal to the amountof the taxes paid, except refunds granted on the tax paid on fuel used by ataxicab service shall be in an amount equal to the tax paid less $0.01 pergallon on the fuel used.

Any refunds made under this subsection shall be deducted from the urbanhighway funds allocated to the highway construction district, pursuant toArticle 1.1 ( 33.1-23.01 et seq.) of Chapter 1 of Title 33.1, in which therecipient has its principal place of business.

Except as otherwise provided in this chapter, all provisions of lawapplicable to the refund of fuel taxes by the Commissioner generally shallapply to the refunds authorized by this subsection. Any county havingwithdrawn its roads from the secondary system of state highways underprovisions of 11 Chapter 415 of the Acts of 1932 shall receive itsproportionate share of such special funds as is now provided by law withrespect to other fuel tax receipts.

D. Any person purchasing fuel for consumption in a vehicle designed orpermanently adapted solely and exclusively for bulk spreading or spraying ofagricultural liming materials, chemicals, or fertilizer, where the vehicle'sequipment is mechanically or hydraulically driven by an internal combustionengine that propels the vehicle, is entitled to a refund in an amount equalto 55 percent of the tax paid on such fuel.

E. Refunds resulting from any fuel shipments diverted from Virginia shall bebased on the amount of tax paid for the fuel less discounts allowed by 58.1-2233.

F. Any person who is required to be licensed under this chapter and isapplying for a refund shall not be eligible for such refund if the applicantwas not licensed at the time the refundable transaction was conducted.

(2000, cc. 247, 347, 729, 758; 2001, c. 167; 2003, c. 781; 2005, cc. 243,782, 928.)