58.1-3814 - Water or heat, light and power companies.
§ 58.1-3814. Water or heat, light and power companies.
A. Any county, city or town may impose a tax on the consumers of the utilityservice or services provided by any water or heat, light and power company orother corporations coming within the provisions of Chapter 26 (§ 58.1-2600 etseq.) of this title, which tax shall not be imposed at a rate in excess of 20percent of the monthly amount charged to consumers of the utility service andshall not be applicable to any amount so charged in excess of $15 per monthfor residential customers. Any city, town or county that on July 1, 1972,imposed a utility consumer tax in excess of limits specified herein maycontinue to impose such a tax in excess of such limits, but no more. Fortaxable years beginning on and after January 1, 2001, any tax imposed by acounty, city or town on consumers of electricity shall be imposed pursuant tosubsections C through J of this section only.
B. Any tax enacted pursuant to the provisions of this section, or any changein a tax or structure already in existence, shall not be effective until 60days subsequent to written notice by certified mail from the county, city ortown imposing such tax or change thereto, to the registered agent of theutility corporation that is required to collect the tax.
C. Any county, city or town may impose a tax on the consumers of servicesprovided within its jurisdiction by any electric light and power, water orgas company owned by another municipality; provided, that no county shall beauthorized under this section to impose a tax within a municipality onconsumers of services provided by an electric light and power, water or gascompany owned by that municipality. Any county tax imposed hereunder shallnot apply within the limits of any incorporated town located within suchcounty which town imposes a town tax on consumers of utility service orservices provided by any corporation coming within the provisions of Chapter26 (§ 58.1-2600 et seq.) of this title, provided that such town (i) providespolice or fire protection, and water or sewer services, provided that anysuch town served by a sanitary district or service authority providing wateror sewer services or served by the county in which the town is located whensuch service or services are provided pursuant to an agreement between thetown and county shall be deemed to be providing such water and sewer servicesitself, or (ii) constitutes a special school district and is operated as aspecial school district under a town school board of three members appointedby the town council.
Any county, city or town may provide for an exemption from the tax for anypublic safety answering point as defined in § 58.1-3813.1.
Any municipality required to collect a tax imposed under authority of thissection for another city or county or town shall be entitled to a reasonablefee for such collection.
D. In a consolidated county wherein a tier-city exists, any county taximposed hereunder shall apply within the limits of any tier-city located insuch county, as may be provided in the agreement or plan of consolidation,and such tier-city may impose a tier-city tax on the same consumers ofutility service or services, provided that the combined county and tier-cityrates do not exceed the maximum permitted by state law.
E. The tax authorized by this section shall not apply to utility sales ofproducts used as motor vehicle fuels.
F.1. Any county, city or town may impose a tax on consumers of electricityprovided by electric suppliers as defined in § 58.1-400.2.
The tax so imposed shall be based on kilowatt hours delivered monthly toconsumers, and shall not exceed the limits set forth in this subsection. Theprovider of billing services shall bill the tax to all users who are subjectto the tax and to whom it bills for electricity service, and shall remit suchtax to the appropriate locality in accordance with § 58.1-2901. Any localitythat imposed a tax pursuant to this section prior to January 1, 2001, basedon the monthly revenue amount charged to consumers of electricity shallconvert its tax to a tax based on kilowatt hours delivered monthly toconsumers, taking into account minimum billing charges. The kilowatt hour taxrates shall, to the extent practicable: (i) avoid shifting the amount of thetax among electricity consumer classes and (ii) maintain annual revenuesbeing received by localities from such tax at the time of the conversion. Thecurrent service provider shall provide to localities no later than August 1,2000, information to enable localities to convert their tax. The maximumamount of tax imposed on residential consumers as a result of the conversionshall be limited to $3 per month, except any locality that imposed a highermaximum tax on July 1, 1972, may continue to impose such higher maximum taxon residential consumers at an amount no higher than the maximum tax ineffect prior to January 1, 2001, as converted to kilowatt hours. Fornonresidential consumers, the initial maximum rate of tax imposed as a resultof the conversion shall be based on the annual amount of revenue receivedfrom each class of nonresidential consumers in calendar year 1999 for thekilowatt hours used that year. Kilowatt hour tax rates imposed onnonresidential consumers shall be based at a class level on such factors asexisting minimum charges, the amount of kilowatt hours used, and the amountof consumer utility tax paid in calendar year 1999 on the same kilowatt hourusage. The limitations in this section on kilowatt hour rates fornonresidential consumers shall not apply after January 1, 2004. On or beforeOctober 31, 2000, any locality imposing a tax on consumers of electricityshall duly amend its ordinance under which such tax is imposed so that theordinance conforms to the requirements of subsections C through J of thissection. Notice of such amendment shall be provided to service providers in amanner consistent with subsection B of this section except that "registeredagent of the provider of billing services" shall be substituted for"registered agent of the utility corporation." Any conversion of a tax toconform to the requirements of this subsection shall not be effective beforethe first meter reading after December 31, 2000, prior to which time the taxpreviously imposed by the locality shall be in effect.
2. For purposes of this section, "kilowatt hours delivered" shall mean inthe case of eligible customer-generators, as defined in § 56-594, thosekilowatt hours supplied from the electric grid to such customer-generators,minus the kilowatt hours generated and fed back to the electric grid by suchcustomer-generators.
G. Until the consumer pays the tax to such provider of billing services, thetax shall constitute a debt to the locality. If any consumer receives andpays for electricity but refuses to pay the tax on the bill that is imposedby a locality, the provider of billing services shall notify the locality ofthe name and address of such consumer. If any consumer fails to pay a billissued by a provider of billing services, including the tax imposed by alocality as stated thereon, the provider of billing services shall follow itsnormal collection procedures with respect to the charge for electric serviceand the tax, and upon collection of the bill or any part thereof shall (i)apportion the net amount collected between the charge for electric serviceand the tax and (ii) remit the tax portion to the appropriate locality. Afterthe consumer pays the tax to the provider of billing services, the taxesshall be deemed to be held in trust by such provider of billing servicesuntil remitted to the localities.
H. Any county, city or town may impose a tax on consumers of natural gasprovided by pipeline distribution companies and gas utilities. The tax soimposed shall be based on CCF delivered monthly to consumers and shall notexceed the limits set forth in this subsection. The pipeline distributioncompany or gas utility shall bill the tax to all users who are subject to thetax and to whom it delivers gas and shall remit such tax to the appropriatelocality in accordance with § 58.1-2905. Any locality that imposed a taxpursuant to this section prior to January 1, 2001, based on the monthlyrevenue amount charged to consumers of gas shall convert to a tax based onCCF delivered monthly to consumers, taking into account minimum billingcharges. The CCF tax rates shall, to the extent practicable: (i) avoidshifting the amount of the tax among gas consumer classes and (ii) maintainannual revenues being received by localities from such tax at the time of theconversion. Current pipeline distribution companies and gas utilities shallprovide to localities not later than August 1, 2000, information to enablelocalities to convert their tax. The maximum amount of tax imposed onresidential consumers as a result of the conversion shall be limited to $3per month, except any locality that imposed a higher maximum tax on July 1,1972, may continue to impose such higher maximum tax on residential consumersat an amount no higher than the maximum tax in effect prior to January 1,2001, as converted to CCF. For nonresidential consumers, the initial maximumrate of tax imposed as a result of the conversion shall be based on theannual amount of revenue received and due from each of the nonresidential gaspurchase and gas transportation classes in calendar year 1999 for the CCFused that year. CCF tax rates imposed on nonresidential consumers shall bebased at a class level on such factors as existing minimum charges, theamount of CCF used, and the amount of consumer utility tax paid and due incalendar year 1999 on the same CCF usage. The initial maximum rate of taximposed under this section shall continue, unless lowered, until December 31,2003. Beginning January 1, 2004, nothing in this section shall be construedto prohibit or limit any locality from imposing a consumer utility tax onnonresidential customers up to the amount authorized by subsection A.
On or before October 31, 2000, any locality imposing a tax on consumers ofgas shall duly amend its ordinance under which such tax is imposed so thatthe ordinance conforms to the requirements of subsections C through J of thissection. Notice of such amendment shall be provided to pipeline distributioncompanies and gas utilities in a manner consistent with subsection B exceptthat "registered agent of the pipeline distribution company or gas utility"shall be substituted for "registered agent of the utility corporation." Anyconversion of a tax to conform to the requirements of this subsection shallnot be effective before the first meter reading after December 31, 2000,prior to which time the tax previously imposed by the locality shall be ineffect.
I. Until the consumer pays the tax to such gas utility or pipelinedistribution company, the tax shall constitute a debt to the locality. If anyconsumer receives and pays for gas but refuses to pay the tax that is imposedby the locality, the gas utility or pipeline distribution company shallnotify the localities of the names and addresses of such consumers. If anyconsumer fails to pay a bill issued by a gas utility or pipeline distributioncompany, including the tax imposed by a locality, the gas utility or pipelinedistribution company shall follow its normal collection procedures withregard to the charge for the gas and the tax and upon collection of the billor any part thereof shall (i) apportion the net amount collected between thecharge for gas service and the tax and (ii) remit the tax portion to theappropriate locality. After the consumer pays the tax to the gas utility orpipeline distribution company, the taxes shall be deemed to be held in trustby such gas utility or pipeline distribution company until remitted to thelocalities.
J. For purposes of this section:
"Class of consumers" means a category of consumers served under a rateschedule established by the pipeline distribution company and approved by theState Corporation Commission.
"Gas utility" has the same meaning as provided in § 56-235.8.
"Pipeline distribution company" has the same meaning as provided in §58.1-2600.
"Service provider" and "provider of billing services" have the samemeanings as provided in subsection E of § 58.1-2901, and "class" ofconsumers means a category of consumers defined as a class by their serviceprovider.
K. Nothing in this section shall prohibit a locality from enacting anordinance or other local law to allow such locality to impose a tax onconsumers of natural gas provided by pipeline distribution companies and gasutilities, beginning at such time as natural gas service is first madeavailable in such locality. The maximum amount of tax imposed on residentialconsumers based on CCF delivered monthly to consumers shall not exceed $3 permonth. The maximum tax rate imposed by such locality on nonresidentialconsumers based on CCF delivered monthly to consumers shall not exceed anaverage of the tax rates on nonresidential consumers of natural gas in effect(at the time natural gas service is first made available in such locality) inlocalities whose residents are being provided natural gas from the samepipeline distribution company or gas utility or both that is also providingnatural gas to the residents of such locality. Beginning January 1, 2004, thetax rates for residential and nonresidential consumers of natural gas in suchlocality shall be determined in accordance with the provisions of subsectionH.
(Code 1950, § 58-617.2; 1966, c. 540; 1971, Ex. Sess., c. 90; 1972, cc. 338,459; 1975, c. 55; 1976, c. 565; 1982, c. 616; 1984, cc. 154, 675, 695; 1986,c. 38; 1992, c. 399; 1995, cc. 553, 590; 1998, c. 337; 1999, c. 971; 2000,cc. 614, 691, 706, 1064; 2001, cc. 737, 748; 2004, cc. 8, 159; 2008, c. 883.)