§ 3106 -   Imposition, rate and payment of tax

§ 3106. Imposition, rate and payment of tax

(a) Except for sales of motor fuels between distributors licensed in this state, which sales shall be exempt from the tax and from the motor fuel transportation infrastructure assessment, in all cases not exempt from the tax 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 tax of $0.19 upon each gallon of motor fuel sold by the distributor, and a motor fuel transportation infrastructure assessment in the amount of two percent of the retail price exclusive of all federal and state taxes upon each gallon of motor fuel sold by the distributor. The retail price shall be based upon the average retail prices for regular gasoline determined and published by the department of public service. The retail price applicable for the January-March quarter shall be the average of the retail prices published by the department of public service the prior October, November, and December; and the retail price applicable in each succeeding calendar quarter shall be equal to the average of the retail prices published by the department of public service in the preceding quarter. The distributor shall also pay to the commissioner a tax and a motor fuel transportation infrastructure assessment in the same amounts upon each gallon of motor fuel used within the state by him or her.

(b) If a remittance to cover payment of taxes due as shown by a report required by this chapter is sent through the United States 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 United States post office has corrected or changed the date stamped by causing the official United States 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.

(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 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; No. 61, § 192, eff. June 26, 1997; 1999, No. 1, § 96, eff. March 31, 1999; 2009, No. 50, § 24, eff. June 1, 2009.)