§ 3106. Imposition, rate, and payment of tax

(a)(1) Except for sales of motor fuels between distributors licensed in this State, which sales shall be exempt from the taxes and assessments authorized under this section, unless exempt under the laws of the United States at the time of filing the report required by section 3108 of this title, each distributor shall pay to the Commissioner:

(A) a tax of $0.121 upon each gallon of motor fuel sold by the distributor; and

(B) the following assessments:

(i) a motor fuel transportation infrastructure assessment that is the greater of:

(I) $0.0396; or

(II) two percent of the tax-adjusted retail price upon each gallon of motor fuel sold by the distributor; and

(ii) a fuel tax assessment, which shall be used exclusively for transportation purposes and not be transferred from the Transportation Fund, that is the greater of:

(I) $0.134 per gallon; or

(II) four percent of the tax-adjusted retail price or $0.18 per gallon, whichever is less, upon each gallon of motor fuel sold by the distributor.

(2) For the purposes of subdivision (1)(B) of this subsection:

(A) The tax-adjusted retail price applicable for a quarter shall be the average of the retail price for regular gasoline collected and determined to three decimal places and published by the Department of Public Service for each of the three months of the preceding quarter after all federal and State taxes and assessments, and the petroleum distributor licensing fee established by 10 V.S.A. § 1942, applicable in each month have been subtracted from that month's retail price. Calculations of the tax-adjusted retail price applicable for a quarter shall be permanently maintained on the website of the Department of Public Service.

(B) In calculating assessment amounts under subdivisions (a)(1)(B)(i)(II) and (a)(1)(B)(ii)(II) of this section, the Department of Motor Vehicles shall calculate the amounts to four decimal places. The Department of Motor Vehicles shall permanently retain the records of its calculations, any corrections thereto, and the data that are the basis for the calculations.

(3) The consolidated Executive Branch fee report and request for transportation made pursuant to 32 V.S.A. § 605(b)(1) may recommend an adjustment in the tax specified in subdivision (1)(A) of this subsection to reflect changes in the Consumer Price Index for All Urban Consumers.

(4) The distributor shall also pay to the Commissioner the tax and assessments specified in this subsection upon each gallon of motor fuel used within the State by him or her.

(5) Monies collected on the sales and use of aviation gasoline pursuant to this subsection shall be used exclusively for aviation purposes consistent with 49 U.S.C. § 47133 and Federal Aviation Administration regulations and policies.

[Subsection (b) effective until July 1, 2020; see also subsection (b) effective July 1, 2020.]

(b)(1) On or before the due date established by section 3108 of this title, payment of taxes due as shown by a report required by this chapter shall be transmitted to the Department of Motor Vehicles as follows:

(A) If the tax liability is more than $25,000.00, it shall be sent by means of an electronic funds transfer payment.

(B) If the tax liability is $25,000.00 or less, payment shall be sent by means of an electronic funds transfer payment or by a remittance through the U.S. mail.

(2) If payment is sent through the U.S. mail properly addressed to the Department of Motor Vehicles, it shall be deemed received on the date shown by the postmark on the envelope containing the report only for purposes of avoiding penalty and interest. In the event a mailing date is affixed to the envelope by a machine owned or under the control of the person submitting the report, and the U.S. Post Office has corrected or changed the date stamped by causing the official U.S. Post Office postmark to also be imprinted on the envelope, the date shown by the official post office postmark shall be the accepted date if different from the original postmark.

[Subsection (b) effective July 1, 2020; see also subsection (b) effective until until July 1, 2020.]

(b) On or before the due date established by section 3108 of this title, payment of taxes due as shown by a report required by this chapter shall be transmitted to the Department of Motor Vehicles by means of an electronic funds transfer payment.

(c) Except as provided in subsection (d) of this section, and subdivision 1220a(b)(3) of this title, all taxes, interest, and penalties collected by the Department of Motor Vehicles under this chapter shall be paid to the State Treasurer and credited to the Transportation Fund.

(d) Since many nonresidents and residents drive to outdoor areas of Vermont in order to view our natural resources, to hunt and fish, and to use our natural resources for other healthful recreational purposes, it is the policy of this State that a portion of the gasoline tax shall be dedicated for the purpose of conserving and maintaining our natural resources. Therefore, beginning in fiscal year 1998, three-eighths of one cent of the tax collected under subsection (a) of this section, except for the tax collected on aviation gasoline, shall be transferred 76 percent to the Fish and Wildlife Fund and 24 percent to the Department of Forests, Parks and Recreation for natural resource management. Of the funds deposited in the Fish and Wildlife Fund, the interest earned by deposited funds and all funds remaining at the end of the fiscal year shall remain in the Fish and Wildlife Fund. (Added 1985, No. 207 (Adj. Sess.), § 1; amended 1989, No. 51, § 5, eff. June 1, 1989; 1993, No. 211 (Adj. Sess.), §§ 30, 31, eff. June 17, 1994; 1995, No. 178 (Adj. Sess.), § 203; 1997, No. 60, § 71; 1997, No. 61, § 192, eff. June 26, 1997; 1999, No. 1, § 96, eff. March 31, 1999; 2009, No. 50, § 24, eff. June 1, 2009; 2011, No. 62, § 31; 2013, No. 12, § 23, eff. May 1, 2013; 2013, No. 12, § 23a, eff. July 1, 2014; 2013, No. 57, § 31c, eff. May 30, 2013; 2015, No. 40, § 23; 2017, No. 158 (Adj. Sess.), § 22; 2017, No. 158 (Adj. Sess.), § 33, eff. Jan. 1, 2019; 2017, No. 206 (Adj. Sess.), § 11, eff. July 1, 2019; 2017, No. 206 (Adj. Sess.), § 12, eff. July 1, 2020.)