Bulletin Number
VTB 81-21
Tax Type
Retail Sales and Use Tax
Description
Sales and Use Tax Exemption: Fuels for Domestic Consumption
Topic
Exemptions
Date Issued
09-10-1981
DATE: September 10, 1981
SUBJECT: Sales and Use Tax Exemption: Fuels For Domestic Consumption
Effective October 1, 1981, the 3% state sales and use tax will no longer apply to artificial or propane gas, firewood, coal and home heating oil purchased by an individual for domestic consumption. The 1% local tax will continue to apply to these fuels unless specifically exempted by local ordinance.
The attached Tax Policy Statement 81-1 explains Virginia Code § 58-441.6(gl) which sets forth the exemption for these fuels. The policy statement identifies those persons and groups who do and do not qualify for the exemption and specifies the conditions which must be met in order for a purchase to be classified as for domestic consumption. You should note that the sales and use tax exemption currently extended to nonprofit schools and institutions of learning; licensed nonprofit hospitals, nursing homes, and homes for adults; nonprofit volunteer and rescue squads; and federal, state or local governments is applicable to all purchases of fuel and the ST-12 or ST-13 certificate of exemption should be furnish by these groups when purchasing the fuel.
At this time, the majority of cities and counties are continuing to impose the local 1% tax on heating fuels for domestic consumption. As a result, most dealers will be reporting and remitting the 1%, local tax only on sales of these fuels, and not the 3% state tax. The following sample will illustrate the manner in which a dealer located in a city/county continuing to impose the local tax should complete the monthly return.
EXAMPLE:
Dealer A
Total Sales (gross sales) $100,000
Sales of Heating Fuel for
domestic consumption 20,000
Other exempt sales 10,000
ST-9 Dealer's Return
| A. Item | B. State | C. Local |
| 4. Total of Items 1, 2, and 3 on ST-9A (gross sales) | $100,000 | $100,000 |
| 5. Total Deductions | $30,000 | $10,000 |
| 6. Amount on which tax must be computed | $70,000 | $90,000 |
| 7. Tax (State-3%; Local-1%) | $2,100 | $900 |
| 8. Dealer's 3% discount | $63 |  |
| 9. Item 7 less Item 8 | $2,037 | $900 |
| 10. Penalty for late filing and payment | ---- | ---- |
| 11. Interest for late filing and payment | ---- | ---- |
| 12. Total Tax, Penalty and Interest | $2,037 | $900 |
| 13. Combined State and Local Tax, Penalty and Interest Due and Payable | $2,937 | |
Dealers located in a city/county which does elect to remove the 1% local tax on fuels for domestic consumption will have identical total deductions (line 5h) and tax computation amount (line 6) in the state and local columns.
Whenever any city/county adopts a local ordinance to exempt fuels for domestic consumption from the 1% local tax, the department will notify fuel dealers in that locality and advise them of the effective date of the ordinance.
If you have any questions, please feel free to contact the Department of Taxation, P. O. Box 6 L, Richmond, Virginia 23282, telephone (804) 257-8037.
Tax Bulletins