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!