Bills prohibit gas stations from being taxed on collections

By Christina Nuckols
The Virginian-Pilot

Bills prohibiting local governments from assessing a tax on gas stations for the fuel taxes they collect was endorsed by two legislative committees Wednesday.

Sharon McDonald, Norfolk's commissioner of the revenue, notified city gas station owners last month that they would be required to pay taxes on money they collect from fuel taxes starting this year.

She based her action on an interpretation of a 2001 law by state tax officials. Legislators said they did not intend to impose a tax on a tax and have rushed to fix the mistake.