The BPOL Tax Pledge

I ________________________ PLEDGE TO WORK WITH ALL MEMBERS OF

THE GENERAL ASSEMBLY TO AMEND Ҥ 58.1-3732. Exclusions

and deductions from "gross receipts.". TO RESTORE FAIRNESS TO Ҥ 58.1-

3700. License requirement; requiring evidence of payment of business

license, business personal property, meals and admissions taxes.” FOR

MOTOR FUEL RESEELERS, BEFORE THE CLOSE OF THE NEXT SESSION OF

THE GENERAL ASSEMBLY.

 _________________________

CANDIDATE

We all purchase motor fuel, gasoline and diesel fuel from service stations and convenience stores that sell gasoline and diesel fuel regularly, some of us more regularly than we would like. Over the past five years we have seen prices skyrocket to unheard of levels and we have resent days been told the national average price of a gallon of regular gasoline alone has been over $3.00 per gallon for more than one thousand (1,000) days. When motor fuel prices rise so do the gross receipts of resellers that market them to the public. Because petroleum is a commodity, these prices are subject to market forces resellers have no control over. Unfortunately, their profit margin whether the price is $5.00 per gallon or $0.99 per gallon is about the same, between 10 and 15 cents after applying fees for credit and debit cards. While it is true some resellers earn more, the majority are in this category. The margin on Diesel fuel is slightly higher averaging between 25 and 30 cents per gallon.

That said, the Business Professional and Occupational Tax also known as the BPOL tax is based on Gross Receipts. When the price goes up, so do the gross receipts. If the price remains high so do the taxes levied against the sales of the motor fuel. For many years prices were stable under $2.00 per gallon. Then came the wars in Iraq and Afghanistan and prices began to fluctuate wildly. Still it took quite a while for them to rise and remain above $3.00 per gallon. This is true even during period when fuels are blended to account for seasons, winter fuel and summer fuel blends for air quality. When Refineries switch blends it causes inventories to fall, so prices increase; then as capacity returns to normal so to do prices.

Counties and Independent Cities in the Commonwealth of Virginia have had nothing short of a Windfall Profit over the past five years at the expense of Resellers of Motor Fuel. This is a separate and unequal manner of taxing businesses that cannot be allowed to stand. A few jurisdictions have gone as far as to deny Resellers important deductions from gross receipts that are codified in the Code of Virginia. The Federal and Virginia Excise Taxes paid by the Reseller on the Invoice received from the wholesaler. They depend on a twisted interpretation of how taxes are paid as their way to skirt the will of the General Assembly.

I am asking on behalf of Resellers that All Candidates for the General Assembly and for Governor in Virginia take the BPOL Tax Pledge. It is simple and straight forward and is just the right thing to do to restore fairness to Virginia's small businesses. Resellers of Motor Fuels we all depend on are our friends and neighbors. They deserve the same treatment as any other retailer.

Please ask your candidates to take the pledge!