The Motor Vehicle Fuels sales tax is levied at the rate of 2.1 percent on fuels sold/delivered in bulk in the Northern Virginia and Hampton Roads areas. The tax is imposed on the sales price of fuel to motor fuels dealers, which includes state and federal taxes. The tax is collected by the Commonwealth of Virginia, and remitted to NVTC where it is held in trust for its member jurisdictions’ restricted use. The NVTC WMATA compact members, which include the counties of Fairfax and Arlington, and the cities of Alexandria, Fairfax and Falls Church, are required to use the tax for Metro capital and operating subsidies. Loudoun County may use the tax for any transportation purpose.
The Regional Motor Fuels sales tax was first levied in 1981 at the rate of 2 percent of retail sales. Effective January 1, 2010, the tax was changed to a 2.1 percent tax on a wholesale basis (Virginia Code Section 58.1-2291). The increase in the rate was to account for the loss of dealer profit that was part of the two percent tax base when it was a retail tax.