Virginia Eliminates Conventional Motor Fuel Tax

Virginia will become the first state to eliminate the conventional cents-per-gallon tax at the pump and switch to a percentage tax based on the wholesale price of gasoline and diesel.  Effective July 1, 2013, the gasoline tax will be 3.5% of the wholesale price.  The diesel tax will be 6% of the wholesale price.  According to the Virginia Petroleum, Convenience and Grocery Association (VPCGA) the price used to figure the tax will be the wholesale price for the preceding six months. The VPCGA will be sponsoring a series of compliance seminars to brief the membership on the provisions of the new law.  They will be joined by the DMV, the state agency responsible for collection and enforcement.