Virginia Fuel Wholesale Sales Tax Change - Effective July 1, 2018

Effective July 1, 2018, Virginia Motor Vehicle Fuels Sales Tax (Wholesale Sales Tax) was converted to a cents per gallon tax.  Prior to July 1, the tax rate was applied to the sales price charged to the retail dealer and was 2.1% of that total.  Effective July 1, the tax rate will be applied to the number of gallons sold and delivered to the retail dealer, 7.6 cents for gasoline and 7.7 cents for diesel.

The Wholesale Sales Tax was a 2.1% tax on fuels sold in the Northern Virginia area.  This tax was based on the sales price of the fuels and was in addition to all other taxes on fuels.  Persons selling fuels to retail dealers are required to collect the wholesale sales tax from the purchaser and remit such tax to DMV.  Effective July 1, 2018, a tax rate will be determined and applied to each gallon of fuel sold and delivered to a retail dealer in the Northern Virginia area.  The jurisdictions that comprise the Northern Virginia area are the counties of Fairfax, Prince William, Loudon, Arlington, Stafford and Spotsylvania and the cities of Alexandria, Fairfax, Falls Church, Manassas, Manassas Park and Fredericksburg.

The Tax Rates per Gallon in effect from July 1 – December 31, 2018 are seven and six-tenths cents (0.076) for gasoline and seven and seven-tenths cents (.077) for diesel.

Ewing Oil was just notified of this change today.  At this point, we have billed loads from July 1 – July 10.  We are in the process of returning those loads (issuing a credit for the initial invoice) and then will re-bill those loads with the new tax rates.  Beginning today, July 12, the prices posted to the Ewing Oil Company portal will reflect and include the Wholesale Sales Tax.  In the past, the prices on the portal did not include the Wholesale Sales Tax.