Virginia Gas Tax to Increase to 16.2 Cents Per Gallon Jan. 1
Posted: Fri, 05 Dec 2014 14:42:13
It's Official: Virginia Gas Tax Will Increase to 16.2 Cents Per Gallon on January 1
For the first time in 29 years, Virginia's statewide gasoline tax will increase from 11.1 cents per gallon to 16.2 cents per gallon. This change was mandated under last year's comprehensive transportation funding bill. Under the legislation, taxes are calculated on a cents per gallon basis based upon a percentage of the wholesale price of gasoline on 2/20/13. Because Congress failed to pass legislation granting Virginia the authority to force internet sellers to collect state and local taxes, the percentage of the wholesale price of gasoline increases from 3.5 to 5.1 percent which produces the new cents per gallon rate of 16.2 cents per gallon. The new rate will be in effect until June 30, 2015.
The law makes no provision for product held in inventory on December 31. Sellers need to ensure that the tax is collected at 11.1 cpg on sales up until 11:59 pm on December 31 and at the16.2 rate for sales after midnight on January 1.
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Source: Virginia Petroleum, Convenience and Grocery Association
Remaining unchanged is the statewide diesel tax at 20.2 cents per gallon and the local taxes in Northern Virginia and Hampton Roads of 2.1 percent of the retail price.
For the first time in 29 years, Virginia's statewide gasoline tax will increase from 11.1 cents per gallon to 16.2 cents per gallon. This change was mandated under last year's comprehensive transportation funding bill. Under the legislation, taxes are calculated on a cents per gallon basis based upon a percentage of the wholesale price of gasoline on 2/20/13. Because Congress failed to pass legislation granting Virginia the authority to force internet sellers to collect state and local taxes, the percentage of the wholesale price of gasoline increases from 3.5 to 5.1 percent which produces the new cents per gallon rate of 16.2 cents per gallon. The new rate will be in effect until June 30, 2015.
The law makes no provision for product held in inventory on December 31. Sellers need to ensure that the tax is collected at 11.1 cpg on sales up until 11:59 pm on December 31 and at the16.2 rate for sales after midnight on January 1.
..................................
Source: Virginia Petroleum, Convenience and Grocery Association
Remaining unchanged is the statewide diesel tax at 20.2 cents per gallon and the local taxes in Northern Virginia and Hampton Roads of 2.1 percent of the retail price.

