Chapter 23. Motor Fuel Tax.
Subchapter I. General Provisions.
§ 47–2301. Rate; deposit into General Fund.
(a)(1) [Not applicable after September 30, 2020] The District shall levy and collect a tax on motor vehicle fuels equal to 8.0% of the average wholesale price of a gallon of regular unleaded gasoline for the applicable base period, excluding federal and state taxes, sold or otherwise disposed of by an importer or by a user, or used for commercial purposes. In no case shall the average wholesale price computed for purposes of this section be less than $2.94.
(2) [Not applicable after September 30, 2020] The average wholesale price shall be calculated for adjustment of the motor vehicle fuel tax effective April 1 and October 1 of each year. When computing the average wholesale price of a gallon of motor vehicle fuel, the District shall use the monthly Central Atlantic (PADD 1B) Regular Gasoline Wholesale/Resale Price by Refiners data compiled by the US Energy Information Administration, or equivalent wholesale price data. Monthly price data for the period from July 1 through December 31, rounded to the nearest one half-cent, shall be used to determine the tax for the immediately following period beginning April 1. Monthly price data for the period from January 1 through June 30, rounded to the nearest one half-cent, shall be used to determine the tax for the immediately following period beginning October 1.
(3) [Not applicable after September 30, 2020] In no case shall an average wholesale price computed for purposes of this section vary by more than 10% from the average wholesale price for the prior period.
(4) This subsection shall not apply after September 30, 2020.
(a-1)(1) The District shall levy and collect a tax and a local transportation surcharge ("surcharge") on motor vehicle fuels sold or otherwise disposed of by an importer or by a user, or used for commercial purposes.
(2) As of October 1, 2020:
(A) The rate of tax shall be $.235 per gallon; and
(B) The surcharge shall be $.053 per gallon;
(3) As of October 1, 2021, the surcharge shall be $.103 per gallon, increased annually, beginning with the fiscal year commencing on October 1, 2022, by the cost-of-living adjustment.
(b) The proceeds of the taxes imposed under §§ 47-2302 through 47-2315, and the money collected from fees charged for the registration and titling of motor vehicles, including fees charged for the issuance of permits to operate motor vehicles, shall be deposited in the General Fund of the District of Columbia established under § 47-131.
(c) The Chief Financial Officer of the District of Columbia shall:
(1) Transfer annually to the District of Columbia Highway Trust Fund the proceeds of the taxes imposed under subsection (a) and (a-1) of this section; and
(2) Transfer to the Capital Improvements Program the revenue derived from the surcharge under subsection (a-1) to fund the renovation, repair, and maintenance of local transportation infrastructure.
§ 47–2301.01. Subchapter subject to the International Fuel Tax Agreement.
The Provisions of this subchapter shall be subject to the provisions of the International Fuel Tax Agreement as required by subchapter II of this chapter.
§ 47–2302. Definitions.
As used in §§ 47-2301 to 47-2315:
(1) The term “motor vehicle” means all vehicles propelled by internal-combustion engines, electricity, or steam, except traction engines, road rollers, and vehicles propelled only upon rails and tracks.
(2) The term “motor vehicle fuels” means gasoline, diesel fuel, and other volatile and flammable liquid fuels produced or compounded for the purpose of operating or propelling internal combustion engines. It also includes benzol, benzene, naphtha, kerosene, heating oils, all liquified petroleum gases, and all combustible gases and liquids suitable for the generation of power for propulsion of motor vehicles when advertised, offered for sale, sold for use, or used, alone, or blended or compounded with other products, for the purpose of operating or propelling internal combustion engines.
(3) The term “importer” means any person who brings into, or who produces, refines, manufactures, or compounds, in the District of Columbia motor vehicle fuel to be used by him or to be sold, kept for sale, bartered, delivered for value, or exchanged for goods.
(4) The term “distributor” means any person other than an importer or user, who purchases motor vehicle fuel for sale to another person for resale.
(5) The term “person” includes individual, partnership, corporation, and association.
(6) The term “Mayor” means the Mayor of the District of Columbia.
(7) The term “highways” means the right-of-way of streets, avenues, and roads, bridges, viaducts, underpasses, drainage structures, guard rails, signs, signals, curbing, and dikes, fills, and retaining walls necessary to support or protect the highway.
(8) The term “construction” means the supervising, inspecting, actual building, and all expenses incidental to the construction of a highway, including the acquisition of the necessary rights-of-way.
(9) The term “reconstruction” means a widening or a rebuilding of the highway or any portion thereof and of sufficient width and strength to care adequately for traffic needs, including all expenses incidental to the reconstruction of a highway and the acquisition of the necessary rights-of-way.
(10) The term “maintenance” means the constant making of needed repairs to preserve the highway.
(11) The term “improvement” means the betterment of a highway by construction, reconstruction, or resurfacing.
(12) The term “user” means anyone other than an importer or distributor who sells, uses, or otherwise disposes of, in the District of Columbia, motor-vehicle fuel upon which the tax imposed by this subchapter has not been paid.
(13) The term “established place of business” means a physical structure owned, leased, or rented by the fleet registrant and used as his or her main office. The physical structure shall be designated by a street number or road location, be opened during normal business hours, and have located within it:
(A) A telephone or telephones publicly listed in the name of the fleet registrant;
(B) A person or persons conducting the fleet registrant’s business; and
(C) The operational records of the fleet.
(14) The term “fleet” means one or more apportionable vehicles.
(15) The term “GVWR” means Gross Vehicle Weight Rating, specified by the manufacturer as the loaded weight of a single vehicle.
(16) The term “International Fuel Tax Agreement” or “IFTA” means the interstate agreement on collecting and distributing fuel use taxes paid by motor carriers, developed under the auspices of the National Governors’ Association.
(17) The term “jurisdictional base” means the jurisdiction that an apportioned operator lists as his or her established place of business for the purpose of complying with the IFTA.
(18) The term “member jurisdiction” means a jurisdiction that is a member of the International Fuel Tax Association.
(19) The term “motor carrier” means an individual, partnership, or corporation engaged in the transportation of goods or persons.
(20) The term “owner” means any person, firm, or corporation other than the lienholder holding legal title to a vehicle.
(21) The term “properly registered vehicle” means a vehicle which has been registered in full compliance with the laws of all jurisdictions in which it is intended to operate.
(22) The term “reciprocity” means the reciprocal granting of rights and privileges to vehicles properly registered under the IFTA and to vehicles not so registered if such vehicles are subject to separate reciprocity agreements, arrangements, declarations, or understandings.
(23) Repealed.
(24)(A) "Cost-of-living adjustment" means the ratio of CPI for the preceding calendar year and the CPI for the base year.
(B) For the purposes of this paragraph, the term:
(i) "Base year" means the calendar year ending December 31, 2020.
(ii) "CPI" means the average of the Consumer Price Index for All Urban Consumers for the Washington-Arlington-Alexandria, DC-MD-VA-WV Metropolitan Statistical Area (or such successor metropolitan statistical area that includes the District) for the preceding calendar year.
§ 47–2303. Importer’s license; application contents; bond; issuance; revocation.
(a) No person shall bring into, or produce, refine, manufacture, or compound in the District of Columbia motor vehicle fuel to be used by him or to be sold, bartered, delivered for value, or exchanged for goods, and no person shall engage in the business of importer of motor vehicle fuels in the District of Columbia unless such person is the holder of an unrevoked license authorizing him so to do issued by the Mayor. The application for such license shall contain (1) the name of the applicant, (2) the name under which the applicant intends to transact business and the name and place of business of the local representative, (3) the location of the applicant’s place of business, (4) the date such business was established, and (5) any other information required under regulations promulgated by the Council of the District of Columbia. In case the applicant is a corporation, the application shall also contain the corporate name, place, and time of incorporation, and the names of the officers and directors, and, if a foreign corporation, the name of its resident general agent, and in case the applicant is a partnership the names and addresses of the several persons constituting the partnership. Such application shall be signed and sworn to by the owner of such business, if owned by an individual; by the partners, if owned by a partnership; or by the president and secretary of the corporation, or by its manager or resident general agent, if owned by a corporation. At the time of applying for such license the applicant shall file with the Mayor of the District of Columbia a bond in the form to be prescribed by the Mayor, in the approximate sum of 3 times the average monthly motor fuel tax due from said such importer during the next preceding 12 months, or estimated to be so due in the next succeeding 12 months, to be executed by a surety company duly licensed to do business under the laws of the District of Columbia, payable to the District of Columbia and conditioned upon the prompt payment of any and all taxes and penalties, levied and imposed in § 47-2301 and this section to the Collector of Taxes of the District of Columbia, and generally upon faithful compliance with the terms of §§ 47-2301 to 47-2315 by such importer; provided, that in no case shall such bond be less than $5,000 nor more than $100,000.
(b) Upon filing such application and bond, the Assessor shall issue to such applicant a license which shall authorize the applicant to engage in the business of importer of motor vehicle fuels for 1 year unless such license is sooner revoked.
(c) If any importer fails, refuses, or neglects to file the monthly report, or to pay the tax within the time required by this subchapter, the Mayor shall promptly notify the importer and the bonding company by notice sent by registered mail or by certified mail to such importer requiring him to show cause why the license should not be revoked. If in the opinion of the Assessor the importer fails within 10 days after the mailing of such notice to show that failure to file the monthly report or to pay the tax as the case may be within the time required was due to accident or justifiable oversight, the Assessor shall forthwith revoke such license. Any importer whose license has been revoked shall not be issued another license for 12 months following the date of said revocation.
(d) Before any person whose license has been revoked may obtain another license to engage in the business of importer of motor vehicle fuels, such person shall pay all delinquent taxes and penalties due hereunder remaining unpaid by him.
§ 47–2304. Monthly report of amount of fuel sold.
Each importer engaged in the District of Columbia in the sale or other disposition or use of motor vehicle fuel shall render to the Assessor of the District of Columbia, on or before the 25th day of each calendar month, on forms prescribed, prepared, and furnished by the said Assessor, a sworn report of the total number of gallons of motor vehicle fuel within the District of Columbia sold or otherwise disposed of by such importer or used by him in a motor vehicle operated for hire or for commercial purposes, and of the number of gallons of such fuel so sold or otherwise disposed of for exportation from and resale without the District of Columbia, during the preceding calendar month. Such report shall be sworn to by one of the principal officers in case of a domestic corporation, by the resident general agent, or attorney in fact, or by a chief accountant or officer in case of a foreign corporation, or by the managing agent or owner in case of a partnership or association.
§ 47–2305. Importers to render invoices except in cases of retail sales.
Invoices shall be rendered by importers and distributors to all purchasers from them of motor vehicle fuel within the District of Columbia except in case of retail sales. Said invoices shall contain a statement, printed thereon in a conspicuous place, that the liability to the District of Columbia for the tax herein imposed has been assumed by a licensed importer named in said statement and that the importer has paid the tax or will pay it on or before the 25th day of the calendar month next succeeding the purchase.
§ 47–2306. Payment of tax.
(a) The tax in respect to motor vehicle fuel so sold or otherwise disposed of or used in any calendar month shall be paid by the importer on or before the 25th day of the next succeeding calendar month to the Collector of Taxes of the District of Columbia, who shall issue a receipt to the importer therefor.
(b) In the event a user obtains, sells, uses, or otherwise disposes of motor vehicle fuel in the District of Columbia upon which the tax imposed by this subchapter has not been paid, he shall be liable for the tax, penalties, and interest on such motor vehicle fuel as provided for in this subchapter.
§ 47–2307. Records subject to inspection of Assessor and Collector.
The records of all purchases, receipts, sales, other dispositions, and uses of motor vehicle fuel of every importer, distributor, user, or dealer shall, at all times during the business hours of the day, be subject to inspection by the Assessor and the Collector of Taxes of the District of Columbia, or by their duly authorized agents or by any other agent duly authorized by the Mayor to make such inspection.
§ 47–2308. Penalty for accepting fuel from importer without an itemized sale statement.
It shall be unlawful for any person to accept or receive from any importer or distributor, except in cases of retail sales, any motor vehicle fuel unless the statement provided for in § 47-2305 appears upon the invoice for the fuel. If any such motor vehicle fuel is received and accepted by any person upon the invoice of which said statement does not appear, such person shall pay to the Collector of Taxes the tax herein imposed.
§ 47–2309. Fuel exported from District of Columbia exempted from taxation.
No tax on motor vehicle fuels exported or sold for exportation from the District of Columbia to any other jurisdiction or nation shall be imposed.
§ 47–2310. Penalties. [Repealed]
Repealed.
§ 47–2311. Tax on fuel sold by United States agency in the District of Columbia.
When under authority of law gasoline or other motor vehicle fuel is sold by an agency of the United States within the District of Columbia, for use in privately-owned vehicles, such agency of the United States shall, by agreement with the Mayor of the District of Columbia, arrange for the collection of the tax herein authorized to be imposed, and for accounting to the Collector of Taxes of the District of Columbia for the proceeds of such tax collections.
§ 47–2312. Prosecutions.
All prosecutions for violations of the provisions of §§ 47-2301 to 47-2315 or regulations prescribed thereunder may be in the Superior Court of the District of Columbia, upon information filed by the Attorney General for the District of Columbia or any of his assistants; and all suits for the collection of any tax or penalty under §§ 47-2301 to 47-2315 or such regulations shall be instituted by the Attorney General for the District of Columbia or any of his assistants.
§ 47–2313. Public hackers not affected.
Nothing in this subchapter shall be construed in any wise to affect the provisions of §§ 47-2829 to 47-2831.
§ 47–2314. Personal property tax laws not affected.
Nothing in §§ 47-2301 to 47-2315 shall be construed as affecting the application to motor vehicles of the personal property tax in force on May 3, 1924, which personal property tax shall continue to be levied, assessed, and collected on motor vehicles.
§ 47–2315. Mayor to issue rules.
The Mayor shall, pursuant to subchapter I of Chapter 5 of Title 2, issue rules to implement the provisions of this subchapter.
§ 47–2316. Procedure for determination, redetermination, assessment, or reassessment; interest penalty; liability for payment.
If a report required by this subchapter is not filed, or if the report when filed is incorrect or insufficient, or if the tax as imposed by this subchapter has been determined to be due from a licensee or another person, the amount of tax due shall be determined by the Mayor from information as may be obtainable. Notice of the determination shall be given to the licensee or other person required to file a report or pay the tax. Assessments of any deficiencies in the tax due under this chapter, or any interest and penalties thereon, shall be governed by § 47-4312.
§ 47–2317. Collection; liens. [Repealed]
Repealed.
§ 47–2318. Refund for erroneous or illegal collection.
Where any tax has been erroneously or illegally collected by the District, the tax shall be refunded if application under oath is filed with the Mayor for such refund within 3 years from the payment thereof. Such application must be made by the person upon whom such tax was imposed and who has actually paid the tax. Application for a refund as herein provided shall be deemed an application for a revision of tax, penalty, and/or interest complained of and the Mayor may receive evidence with respect thereto. After making his determination of whether any refund shall be made, the Mayor shall give notice thereof to the applicant.
§ 47–2319. Judicial review.
Any person aggrieved by a final determination of tax or by a denial of a claim for refund, other than a refund of tax finally determined in § 47-2316, may within 6 months from the date of assessment of the deficiency, or from the date of the denial of a claim for refund, appeal to the Superior Court of the District of Columbia in the same manner and to the same extent as set forth in §§ 47-3303 and 47-3304 as amended.
§ 47–2320. Contraband; declaration; forfeiture; seizure; search; confiscation; sale.
(a) All motor vehicle fuels found in any place in the District of Columbia at such time and under such circumstances that the taxes levied and imposed by this subchapter should have been collected and paid, and on which such taxes have not been paid as required by this subchapter, shall be declared contraband goods and be forfeited to the District of Columbia. The Mayor may seize any such motor vehicle fuels wherever they are found.
(b) In any case where the Mayor has knowledge or reason to suspect that any vehicle is carrying motor vehicle fuel in violation of any provisions of this subchapter, the Mayor is authorized to stop such vehicle and to inspect the same for contraband motor vehicle fuel. If such vehicle is carrying motor vehicle fuel in violation of any provision of this subchapter, the motor vehicle fuel and the vehicle shall be confiscated.
(c) The Mayor shall not in any way be held responsible in any court for the seizure or the confiscation of any motor vehicle fuel or vehicles which are seized or confiscated under the provisions of this subchapter. Any motor vehicle fuel or vehicles so seized shall be sold in the same manner as personal property seized for the payment of District of Columbia taxes, and the proceeds of such sales shall be deposited to the credit of the District of Columbia. Notwithstanding the provisions of this section, if the Mayor believes that any failure to comply with the provisions of this subchapter is excusable, the Mayor may, in his discretion, return to the owner or owners thereof any motor vehicle fuel or vehicles seized under the provisions of this section.
§ 47–2321. Rules and regulations by Mayor.
The Mayor may issue rules and regulations not inconsistent with the provisions of § 47-2005 or this subchapter or both, in order to properly administer the provisions of § 47-2005 or this subchapter, or both.
§ 47–2322. Severability; savings clauses.
(a) If any provision of § 47-2005 or this subchapter, or both, including any amendment made by § 47-2005 or this subchapter, or both, or the application thereof to any person or circumstance, is held invalid, the remainder of the provisions of § 47-2005 or this subchapter, or both, including the remaining amendments thereof, and the application of such provision to other persons or circumstances shall not be affected thereby.
(b) The repeal or amendment by § 47-2005 or this subchapter, or both, or any provision of law shall not affect any act done or any right accrued or accruing under such provision of law before March 4, 1981, or both, or any suit or proceeding had or commenced before March 4, 1981, or both, but all such rights and liabilities under this subchapter and § 47-2005 shall continue, and may be enforced in the same manner and the same extent, as if such repeal or amendment had not been made.
(c) All offenses committed, and all penalties incurred, prior to March 4, 1981, or both, under any provision of law repealed or amended, may be prosecuted and punished in the same manner and with the same effect as if § 47-2005 and this subchapter, or both, had not been enacted.
§ 47–2323. Assessments for street paving — Generally.
Assessments in accordance with existing law shall be made for paving and repaving roadways, where such roadways are paved or repaved, with funds derived from the collection of the tax on motor vehicle fuels.
§ 47–2324. Assessments for street paving — Deposit into General Fund.
All moneys derived from assessments for paving and repaving roadways under provisions of existing law shall be paid into the General Fund of the District of Columbia as established by § 47-131.
§ 47–2325. Continuation of uncompleted projects at end of fiscal year.
Any projects or portions of projects chargeable to the Gasoline Tax Road and Street Improvement Fund during the fiscal year 1925 and subsequent fiscal years and uncompleted at the close of those years shall be a continuing charge upon the Fund until completed and shall, except insofar as conditions beyond the control of the Mayor prevent, be given priority over projects subsequently made a charge upon such Fund.
Subchapter II. International Fuel Tax Agreements.
§ 47–2351. Reciprocal agreements.
(a) The Mayor is authorized to enter into reciprocal agreements on behalf of the District with the duly authorized representatives of any jurisdiction of the United States or of a foreign country to satisfy the requirements of the IFTA. The Mayor is expressly authorized to enter into the IFTA and become a member of the International Fuel Tax Association, Inc., or such other organization that may, from time to time, be created to implement the reporting requirements of the IFTA.
(b) The IFTA and any other agreements associated with the IFTA that are entered into by the Mayor shall take precedence over any District law or regulation that may be in conflict with such agreements.
(c) The District, as a member jurisdiction to the IFTA, shall provide reciprocity to motor vehicle carriers that are engaged in interjurisdictional movement and intrajurisdictional movement, and are properly registered with another member jurisdiction.
§ 47–2352. Registration.
(a) The Mayor shall implement a program for a uniform system of licensing and payment of fuel taxes by interjurisdictional motor carriers fleets consistent with the IFTA.
(b) Repealed.
(c)(1) Commercial vehicles exhibiting the following characteristics shall declare a jurisdictional base and obtain the apportioned credentials issued under the terms of the IFTA:
(A) Vehicles with 2 axles and GVWR of more than 26,000 pounds;
(B) Vehicles with 3 or more axles regardless of weight; or
(C) When used in combination, the weight of the combination exceeds 26,000 pounds.
(d) Any vehicle required or eligible to obtain registration under the IFTA that lists the District as the established place of business must declare the District of Columbia as its jurisdictional base pursuant to the IFTA.
(e) Repealed.
§ 47–2353. Auditing.
The Mayor shall adopt audit procedures consistent with the IFTA to review the uniform mileage schedules and fleet records of apportioned operators that declare the District their jurisdictional base. The audit procedures shall involve at least 15% of the IFTA apportioned vehicles whose operators declare the District as their jurisdictional base over a 5-year period.
§ 47–2354. Fees.
The Mayor shall establish a registration fee schedule for commercial vehicles to carry out the purpose of this subchapter. The money generated from the fees shall be placed in a designated account and used to offset the cost of implementing the provisions of this subchapter.
