{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3814.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3814.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3814.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3814.html"}],"law_id":60760,"edition_id":1,"section_id":60760,"structure_id":15326,"section_number":"58.1-3814","catch_line":"Water or heat, light and power companies","history":"Code 1950, \u00a7 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; 2012, cc. 4, 582.","full_text":"A\n\nAny county, city or town may impose a tax on the consumers of the utility service or services provided by any water or heat, light and power company or other corporations coming within the provisions of Chapter 26 (§ 58.1-2600 et seq.), which tax shall not be imposed at a rate in excess of 20 percent of the monthly amount charged to consumers of the utility service and shall not be applicable to any amount so charged in excess of $15 per month for residential customers. Any city, town or county that on July 1, 1972, imposed a utility consumer tax in excess of limits specified herein may continue to impose such a tax in excess of such limits, but no more. For taxable years beginning on and after January 1, 2001, any tax imposed by a county, city or town on consumers of electricity shall be imposed pursuant to subsections C through J only.B\n\nAny tax enacted pursuant to the provisions of this section, or any change in a tax or structure already in existence, shall not be effective until 60 days subsequent to written notice by certified mail from the county, city or town imposing such tax or change thereto, to the registered agent of the utility corporation that is required to collect the tax.C\n\nAny county, city or town may impose a tax on the consumers of services provided within its jurisdiction by any electric light and power, water or gas company owned by another municipality; provided, that no county shall be authorized under this section to impose a tax within a municipality on consumers of services provided by an electric light and power, water or gas company owned by that municipality. Any county tax imposed hereunder shall not apply within the limits of any incorporated town located within such county which town imposes a town tax on consumers of utility service or services provided by any corporation coming within the provisions of Chapter 26 (§ 58.1-2600 et seq.), provided that such town (i) provides police or fire protection, and water or sewer services, provided that any such town served by a sanitary district or service authority providing water or sewer services or served by the county in which the town is located when such service or services are provided pursuant to an agreement between the town and county shall be deemed to be providing such water and sewer services itself, or (ii) constitutes a special school district and is operated as a special school district under a town school board of three members appointed by the town council.\n\t\t\tAny county, city or town may provide for an exemption from the tax for any public safety answering point as defined in § 58.1-3813.1.\n\t\t\tAny municipality required to collect a tax imposed under authority of this section for another city or county or town shall be entitled to a reasonable fee for such collection.D\n\nIn a consolidated county wherein a tier-city exists, any county tax imposed hereunder shall apply within the limits of any tier-city located in such 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 of utility service or services, provided that the combined county and tier-city rates do not exceed the maximum permitted by state law.E\n\nThe tax authorized by this section shall not apply to:1\n\nUtility sales of products used as motor vehicle fuels; or2\n\nNatural gas used to generate electricity by a public utility as defined in § 56-265.1 or an electric cooperative as defined in § 56-231.15.F\n\n1. Any county, city or town may impose a tax on consumers of electricity provided by electric suppliers as defined in \u00a7 58.1-400.2.\n\t\t\tThe tax so imposed shall be based on kilowatt hours delivered monthly to consumers, and shall not exceed the limits set forth in this subsection. The provider of billing services shall bill the tax to all users who are subject to the tax and to whom it bills for electricity service, and shall remit such tax to the appropriate locality in accordance with \u00a7 58.1-2901. Any locality that imposed a tax pursuant to this section prior to January 1, 2001, based on the monthly revenue amount charged to consumers of electricity shall convert its tax to a tax based on kilowatt hours delivered monthly to consumers, taking into account minimum billing charges. The kilowatt hour tax rates shall, to the extent practicable: (i) avoid shifting the amount of the tax among electricity consumer classes and (ii) maintain annual revenues being received by localities from such tax at the time of the conversion. The current service provider shall provide to localities no later than August 1, 2000, information to enable localities to convert their tax. The maximum amount of tax imposed on residential consumers as a result of the conversion shall be limited to $3 per month, except any locality that imposed a higher maximum tax on July 1, 1972, may continue to impose such higher maximum tax on residential consumers at an amount no higher than the maximum tax in effect prior to January 1, 2001, as converted to kilowatt hours. For nonresidential consumers, the initial maximum rate of tax imposed as a result of the conversion shall be based on the annual amount of revenue received from each class of nonresidential consumers in calendar year 1999 for the kilowatt hours used that year. Kilowatt hour tax rates imposed on nonresidential consumers shall be based at a class level on such factors as existing minimum charges, the amount of kilowatt hours used, and the amount of consumer utility tax paid in calendar year 1999 on the same kilowatt hour usage. The limitations in this section on kilowatt hour rates for nonresidential consumers shall not apply after January 1, 2004. On or before October 31, 2000, any locality imposing a tax on consumers of electricity shall duly amend its ordinance under which such tax is imposed so that the ordinance conforms to the requirements of subsections C through J. Notice of such amendment shall be provided to service providers in a manner consistent with subsection B except that “registered agent of the provider of billing services” shall be substituted for “registered agent of the utility corporation.” Any conversion of a tax to conform to the requirements of this subsection shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by the locality shall be in effect.2\n\nFor purposes of this section, “kilowatt hours delivered” shall mean in the case of eligible customer-generators, as defined in § 56-594, those kilowatt hours supplied from the electric grid to such customer-generators, minus the kilowatt hours generated and fed back to the electric grid by such customer-generators.G\n\nUntil the consumer pays the tax to such provider of billing services, the tax shall constitute a debt to the locality. If any consumer receives and pays for electricity but refuses to pay the tax on the bill that is imposed by a locality, the provider of billing services shall notify the locality of the name and address of such consumer. If any consumer fails to pay a bill issued by a provider of billing services, including the tax imposed by a locality as stated thereon, the provider of billing services shall follow its normal collection procedures with respect to the charge for electric service and the tax, and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for electric service and the tax and (ii) remit the tax portion to the appropriate locality. After the consumer pays the tax to the provider of billing services, the taxes shall be deemed to be held in trust by such provider of billing services until remitted to the localities.H\n\nAny county, city or town may impose a tax on consumers of natural gas provided by pipeline distribution companies and gas utilities. The tax so imposed shall be based on CCF delivered monthly to consumers and shall not exceed the limits set forth in this subsection. The pipeline distribution company or gas utility shall bill the tax to all users who are subject to the tax and to whom it delivers gas and shall remit such tax to the appropriate locality in accordance with § 58.1-2905. Any locality that imposed a tax pursuant to this section prior to January 1, 2001, based on the monthly revenue amount charged to consumers of gas shall convert to a tax based on CCF delivered monthly to consumers, taking into account minimum billing charges. The CCF tax rates shall, to the extent practicable: (i) avoid shifting the amount of the tax among gas consumer classes and (ii) maintain annual revenues being received by localities from such tax at the time of the conversion. Current pipeline distribution companies and gas utilities shall provide to localities not later than August 1, 2000, information to enable localities to convert their tax. The maximum amount of tax imposed on residential consumers as a result of the conversion shall be limited to $3 per month, except any locality that imposed a higher maximum tax on July 1, 1972, may continue to impose such higher maximum tax on residential consumers at an amount no higher than the maximum tax in effect prior to January 1, 2001, as converted to CCF. For nonresidential consumers, the initial maximum rate of tax imposed as a result of the conversion shall be based on the annual amount of revenue received and due from each of the nonresidential gas purchase and gas transportation classes in calendar year 1999 for the CCF used that year. CCF tax rates imposed on nonresidential consumers shall be based at a class level on such factors as existing minimum charges, the amount of CCF used, and the amount of consumer utility tax paid and due in calendar year 1999 on the same CCF usage. The initial maximum rate of tax imposed under this section shall continue, unless lowered, until December 31, 2003. Beginning January 1, 2004, nothing in this section shall be construed to prohibit or limit any locality from imposing a consumer utility tax on nonresidential customers up to the amount authorized by subsection A.\n\t\t\tOn or before October 31, 2000, any locality imposing a tax on consumers of gas shall duly amend its ordinance under which such tax is imposed so that the ordinance conforms to the requirements of subsections C through J of this section. Notice of such amendment shall be provided to pipeline distribution companies and gas utilities in a manner consistent with subsection B except that “registered agent of the pipeline distribution company or gas utility” shall be substituted for “registered agent of the utility corporation.” Any conversion of a tax to conform to the requirements of this subsection shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by the locality shall be in effect.I\n\nUntil the consumer pays the tax to such gas utility or pipeline distribution company, the tax shall constitute a debt to the locality. If any consumer receives and pays for gas but refuses to pay the tax that is imposed by the locality, the gas utility or pipeline distribution company shall notify the localities of the names and addresses of such consumers. If any consumer fails to pay a bill issued by a gas utility or pipeline distribution company, including the tax imposed by a locality, the gas utility or pipeline distribution company shall follow its normal collection procedures with regard to the charge for the gas and the tax and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for gas service and the tax and (ii) remit the tax portion to the appropriate locality. After the consumer pays the tax to the gas utility or pipeline distribution company, the taxes shall be deemed to be held in trust by such gas utility or pipeline distribution company until remitted to the localities.J\n\nFor purposes of this section:\n\t\t\t“Class of consumers” means a category of consumers served under a rate schedule established by the pipeline distribution company and approved by the State Corporation Commission.\n\t\t\t“Gas utility” has the same meaning as provided in § 56-235.8.\n\t\t\t“Pipeline distribution company” has the same meaning as provided in § 58.1-2600.\n\t\t\t“Service provider” and “provider of billing services” have the same meanings as provided in subsection E of § 58.1-2901, and “class” of consumers means a category of consumers defined as a class by their service provider.K\n\nNothing in this section shall prohibit a locality from enacting an ordinance or other local law to allow such locality to impose a tax on consumers of natural gas provided by pipeline distribution companies and gas utilities, beginning at such time as natural gas service is first made available in such locality. The maximum amount of tax imposed on residential consumers based on CCF delivered monthly to consumers shall not exceed $3 per month. The maximum tax rate imposed by such locality on nonresidential consumers based on CCF delivered monthly to consumers shall not exceed an average 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) in localities whose residents are being provided natural gas from the same pipeline distribution company or gas utility or both that is also providing natural gas to the residents of such locality. Beginning January 1, 2004, the tax rates for residential and nonresidential consumers of natural gas in such locality shall be determined in accordance with the provisions of subsection H.","order_by":null,"text":{"0":{"id":222120,"text":"Any county, city or town may impose a tax on the consumers of the utility service or services provided by any water or heat, light and power company or other corporations coming within the provisions of Chapter 26 (§ 58.1-2600 et seq.), which tax shall not be imposed at a rate in excess of 20 percent of the monthly amount charged to consumers of the utility service and shall not be applicable to any amount so charged in excess of $15 per month for residential customers. Any city, town or county that on July 1, 1972, imposed a utility consumer tax in excess of limits specified herein may continue to impose such a tax in excess of such limits, but no more. For taxable years beginning on and after January 1, 2001, any tax imposed by a county, city or town on consumers of electricity shall be imposed pursuant to subsections C through J only.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":222121,"text":"Any tax enacted pursuant to the provisions of this section, or any change in a tax or structure already in existence, shall not be effective until 60 days subsequent to written notice by certified mail from the county, city or town imposing such tax or change thereto, to the registered agent of the utility corporation that is required to collect the tax.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":222122,"text":"Any county, city or town may impose a tax on the consumers of services provided within its jurisdiction by any electric light and power, water or gas company owned by another municipality; provided, that no county shall be authorized under this section to impose a tax within a municipality on consumers of services provided by an electric light and power, water or gas company owned by that municipality. Any county tax imposed hereunder shall not apply within the limits of any incorporated town located within such county which town imposes a town tax on consumers of utility service or services provided by any corporation coming within the provisions of Chapter 26 (§ 58.1-2600 et seq.), provided that such town (i) provides police or fire protection, and water or sewer services, provided that any such town served by a sanitary district or service authority providing water or sewer services or served by the county in which the town is located when such service or services are provided pursuant to an agreement between the town and county shall be deemed to be providing such water and sewer services itself, or (ii) constitutes a special school district and is operated as a special school district under a town school board of three members appointed by the town council.\n\t\t\tAny county, city or town may provide for an exemption from the tax for any public safety answering point as defined in § 58.1-3813.1.\n\t\t\tAny municipality required to collect a tax imposed under authority of this section for another city or county or town shall be entitled to a reasonable fee for such collection.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":222123,"text":"In a consolidated county wherein a tier-city exists, any county tax imposed hereunder shall apply within the limits of any tier-city located in such 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 of utility service or services, provided that the combined county and tier-city rates do not exceed the maximum permitted by state law.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":222124,"text":"The tax authorized by this section shall not apply to:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"5":{"id":222125,"text":"Utility sales of products used as motor vehicle fuels; or","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"6":{"id":222126,"text":"Natural gas used to generate electricity by a public utility as defined in § 56-265.1 or an electric cooperative as defined in § 56-231.15.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"F"},"7":{"id":222127,"text":"1. Any county, city or town may impose a tax on consumers of electricity provided by electric suppliers as defined in \u00a7 58.1-400.2.\n\t\t\tThe tax so imposed shall be based on kilowatt hours delivered monthly to consumers, and shall not exceed the limits set forth in this subsection. The provider of billing services shall bill the tax to all users who are subject to the tax and to whom it bills for electricity service, and shall remit such tax to the appropriate locality in accordance with \u00a7 58.1-2901. Any locality that imposed a tax pursuant to this section prior to January 1, 2001, based on the monthly revenue amount charged to consumers of electricity shall convert its tax to a tax based on kilowatt hours delivered monthly to consumers, taking into account minimum billing charges. The kilowatt hour tax rates shall, to the extent practicable: (i) avoid shifting the amount of the tax among electricity consumer classes and (ii) maintain annual revenues being received by localities from such tax at the time of the conversion. The current service provider shall provide to localities no later than August 1, 2000, information to enable localities to convert their tax. The maximum amount of tax imposed on residential consumers as a result of the conversion shall be limited to $3 per month, except any locality that imposed a higher maximum tax on July 1, 1972, may continue to impose such higher maximum tax on residential consumers at an amount no higher than the maximum tax in effect prior to January 1, 2001, as converted to kilowatt hours. For nonresidential consumers, the initial maximum rate of tax imposed as a result of the conversion shall be based on the annual amount of revenue received from each class of nonresidential consumers in calendar year 1999 for the kilowatt hours used that year. Kilowatt hour tax rates imposed on nonresidential consumers shall be based at a class level on such factors as existing minimum charges, the amount of kilowatt hours used, and the amount of consumer utility tax paid in calendar year 1999 on the same kilowatt hour usage. The limitations in this section on kilowatt hour rates for nonresidential consumers shall not apply after January 1, 2004. On or before October 31, 2000, any locality imposing a tax on consumers of electricity shall duly amend its ordinance under which such tax is imposed so that the ordinance conforms to the requirements of subsections C through J. Notice of such amendment shall be provided to service providers in a manner consistent with subsection B except that “registered agent of the provider of billing services” shall be substituted for “registered agent of the utility corporation.” Any conversion of a tax to conform to the requirements of this subsection shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by the locality shall be in effect.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E2","next_prefix":"F2"},"8":{"id":222128,"text":"For purposes of this section, “kilowatt hours delivered” shall mean in the case of eligible customer-generators, as defined in § 56-594, those kilowatt hours supplied from the electric grid to such customer-generators, minus the kilowatt hours generated and fed back to the electric grid by such customer-generators.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F","next_prefix":"G"},"9":{"id":222129,"text":"Until the consumer pays the tax to such provider of billing services, the tax shall constitute a debt to the locality. If any consumer receives and pays for electricity but refuses to pay the tax on the bill that is imposed by a locality, the provider of billing services shall notify the locality of the name and address of such consumer. If any consumer fails to pay a bill issued by a provider of billing services, including the tax imposed by a locality as stated thereon, the provider of billing services shall follow its normal collection procedures with respect to the charge for electric service and the tax, and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for electric service and the tax and (ii) remit the tax portion to the appropriate locality. After the consumer pays the tax to the provider of billing services, the taxes shall be deemed to be held in trust by such provider of billing services until remitted to the localities.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F2","next_prefix":"H"},"10":{"id":222130,"text":"Any county, city or town may impose a tax on consumers of natural gas provided by pipeline distribution companies and gas utilities. The tax so imposed shall be based on CCF delivered monthly to consumers and shall not exceed the limits set forth in this subsection. The pipeline distribution company or gas utility shall bill the tax to all users who are subject to the tax and to whom it delivers gas and shall remit such tax to the appropriate locality in accordance with § 58.1-2905. Any locality that imposed a tax pursuant to this section prior to January 1, 2001, based on the monthly revenue amount charged to consumers of gas shall convert to a tax based on CCF delivered monthly to consumers, taking into account minimum billing charges. The CCF tax rates shall, to the extent practicable: (i) avoid shifting the amount of the tax among gas consumer classes and (ii) maintain annual revenues being received by localities from such tax at the time of the conversion. Current pipeline distribution companies and gas utilities shall provide to localities not later than August 1, 2000, information to enable localities to convert their tax. The maximum amount of tax imposed on residential consumers as a result of the conversion shall be limited to $3 per month, except any locality that imposed a higher maximum tax on July 1, 1972, may continue to impose such higher maximum tax on residential consumers at an amount no higher than the maximum tax in effect prior to January 1, 2001, as converted to CCF. For nonresidential consumers, the initial maximum rate of tax imposed as a result of the conversion shall be based on the annual amount of revenue received and due from each of the nonresidential gas purchase and gas transportation classes in calendar year 1999 for the CCF used that year. CCF tax rates imposed on nonresidential consumers shall be based at a class level on such factors as existing minimum charges, the amount of CCF used, and the amount of consumer utility tax paid and due in calendar year 1999 on the same CCF usage. The initial maximum rate of tax imposed under this section shall continue, unless lowered, until December 31, 2003. Beginning January 1, 2004, nothing in this section shall be construed to prohibit or limit any locality from imposing a consumer utility tax on nonresidential customers up to the amount authorized by subsection A.\n\t\t\tOn or before October 31, 2000, any locality imposing a tax on consumers of gas shall duly amend its ordinance under which such tax is imposed so that the ordinance conforms to the requirements of subsections C through J of this section. Notice of such amendment shall be provided to pipeline distribution companies and gas utilities in a manner consistent with subsection B except that “registered agent of the pipeline distribution company or gas utility” shall be substituted for “registered agent of the utility corporation.” Any conversion of a tax to conform to the requirements of this subsection shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by the locality shall be in effect.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"11":{"id":222131,"text":"Until the consumer pays the tax to such gas utility or pipeline distribution company, the tax shall constitute a debt to the locality. If any consumer receives and pays for gas but refuses to pay the tax that is imposed by the locality, the gas utility or pipeline distribution company shall notify the localities of the names and addresses of such consumers. If any consumer fails to pay a bill issued by a gas utility or pipeline distribution company, including the tax imposed by a locality, the gas utility or pipeline distribution company shall follow its normal collection procedures with regard to the charge for the gas and the tax and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for gas service and the tax and (ii) remit the tax portion to the appropriate locality. After the consumer pays the tax to the gas utility or pipeline distribution company, the taxes shall be deemed to be held in trust by such gas utility or pipeline distribution company until remitted to the localities.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"12":{"id":222132,"text":"For purposes of this section:\n\t\t\t“Class of consumers” means a category of consumers served under a rate schedule established by the pipeline distribution company and approved by the State Corporation Commission.\n\t\t\t“Gas utility” has the same meaning as provided in § 56-235.8.\n\t\t\t“Pipeline distribution company” has the same meaning as provided in § 58.1-2600.\n\t\t\t“Service provider” and “provider of billing services” have the same meanings as provided in subsection E of § 58.1-2901, and “class” of consumers means a category of consumers defined as a class by their service provider.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"13":{"id":222133,"text":"Nothing in this section shall prohibit a locality from enacting an ordinance or other local law to allow such locality to impose a tax on consumers of natural gas provided by pipeline distribution companies and gas utilities, beginning at such time as natural gas service is first made available in such locality. The maximum amount of tax imposed on residential consumers based on CCF delivered monthly to consumers shall not exceed $3 per month. The maximum tax rate imposed by such locality on nonresidential consumers based on CCF delivered monthly to consumers shall not exceed an average 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) in localities whose residents are being provided natural gas from the same pipeline distribution company or gas utility or both that is also providing natural gas to the residents of such locality. Beginning January 1, 2004, the tax rates for residential and nonresidential consumers of natural gas in such locality shall be determined in accordance with the provisions of subsection H.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J"}},"ancestry":[{"id":15326,"edition_id":1,"name":"Consumer Utility Taxes","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13307,"metadata":{},"date_created":"2026-06-26 03:53:59","date_modified":"2026-06-26 03:53:59","permalink":{"id":258473,"object_type":"structure","relational_id":15326,"identifier":"4","token":"58.1\/III\/38\/4","url":"\/58.1\/III\/38\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13307,"edition_id":1,"name":"Miscellaneous Taxes","identifier":"38","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:44:37","date_modified":"2026-06-26 03:44:37","permalink":{"id":258383,"object_type":"structure","relational_id":13307,"identifier":"38","token":"58.1\/III\/38","url":"\/58.1\/III\/38\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85368,"structure_id":15326,"section_number":"58.1-3812","catch_line":"Repealed","url":"\/58.1-3812\/","token":"58.1\/III\/38\/4\/58.1-3812","metadata":false},{"id":73083,"structure_id":15326,"section_number":"58.1-3813","catch_line":"Repealed","url":"\/58.1-3813\/","token":"58.1\/III\/38\/4\/58.1-3813","metadata":false},{"id":61273,"structure_id":15326,"section_number":"58.1-3813.1","catch_line":"Repealed","url":"\/58.1-3813.1\/","token":"58.1\/III\/38\/4\/58.1-3813.1","metadata":false},{"id":60760,"structure_id":15326,"section_number":"58.1-3814","catch_line":"Water or heat, light and power companies","url":"\/58.1-3814\/","token":"58.1\/III\/38\/4\/58.1-3814","metadata":false},{"id":82933,"structure_id":15326,"section_number":"58.1-3814.1","catch_line":"Consumer utility tax on churches [Not set out]","url":"\/58.1-3814.1\/","token":"58.1\/III\/38\/4\/58.1-3814.1","metadata":false},{"id":58522,"structure_id":15326,"section_number":"58.1-3815","catch_line":"Consumer taxes upon lessees of certain property","url":"\/58.1-3815\/","token":"58.1\/III\/38\/4\/58.1-3815","metadata":false},{"id":58351,"structure_id":15326,"section_number":"58.1-3816","catch_line":"Certain counties not to levy consumers' utility tax if such counties levy tax on household goods and personal effects","url":"\/58.1-3816\/","token":"58.1\/III\/38\/4\/58.1-3816","metadata":false},{"id":68839,"structure_id":15326,"section_number":"58.1-3816.1","catch_line":"Discount for collection of taxes","url":"\/58.1-3816.1\/","token":"58.1\/III\/38\/4\/58.1-3816.1","metadata":false},{"id":85735,"structure_id":15326,"section_number":"58.1-3816.2","catch_line":"Exemptions from consumer utility taxes","url":"\/58.1-3816.2\/","token":"58.1\/III\/38\/4\/58.1-3816.2","metadata":false}],"previous_section":{"id":61273,"structure_id":15326,"section_number":"58.1-3813.1","catch_line":"Repealed","url":"\/58.1-3813.1\/","token":"58.1\/III\/38\/4\/58.1-3813.1","metadata":false},"next_section":{"id":82933,"structure_id":15326,"section_number":"58.1-3814.1","catch_line":"Consumer utility tax on churches [Not set out]","url":"\/58.1-3814.1\/","token":"58.1\/III\/38\/4\/58.1-3814.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3814\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 16 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1966, chapter 540; in 1972, chapters 338 and 459; in 1975, chapter 55; in 1976, chapter 565; in 1982, chapter 616; in 1984, chapters 154, 675, and 695; in 1986, chapter 38; in 1992, chapter 399; in 1995, chapters 553<\/a> and 590<\/a>; in 1998, chapter 337<\/a>; in 1999, chapter 971<\/a>; in 2000, chapters 614<\/a>, 691<\/a>, 706<\/a>, and 1064<\/a>; in 2001, chapters 737<\/a> and 748<\/a>; in 2004, chapters 8<\/a> and 159<\/a>; in 2008, chapter 883<\/a>; in 2012, chapters 4<\/a> and 582<\/a>.<\/p>","references":[{"id":60851,"section_number":"15.2-816.1","catch_line":"Underground electric distribution, telecommunications, cable, and other utility facilities","order_by":null,"url":"\/15.2-816.1\/"},{"id":58522,"section_number":"58.1-3815","catch_line":"Consumer taxes upon lessees of certain property","order_by":null,"url":"\/58.1-3815\/"}],"refers_to":[{"id":78685,"section_number":"56-235.8","catch_line":"Retail supply choice for natural gas customers","order_by":null,"url":"\/56-235.8\/"},{"id":85772,"section_number":"56-265.1","catch_line":"Definitions","order_by":null,"url":"\/56-265.1\/"},{"id":76060,"section_number":"56-594","catch_line":"Net energy metering provisions","order_by":null,"url":"\/56-594\/"},{"id":85862,"section_number":"58.1-2600","catch_line":"Definitions","order_by":null,"url":"\/58.1-2600\/"},{"id":73128,"section_number":"58.1-2901","catch_line":"Collection and remittance of tax","order_by":null,"url":"\/58.1-2901\/"},{"id":83971,"section_number":"58.1-2905","catch_line":"Collection and remittance of tax","order_by":null,"url":"\/58.1-2905\/"},{"id":61273,"section_number":"58.1-3813.1","catch_line":"Repealed","order_by":null,"url":"\/58.1-3813.1\/"},{"id":77310,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","order_by":null,"url":"\/58.1-400.2\/"}],"permalink":{"id":258487,"object_type":"law","relational_id":60760,"identifier":"58.1-3814","token":"58.1\/III\/38\/4\/58.1-3814","url":"\/58.1-3814\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3814\/","token":"58.1\/III\/38\/4\/58.1-3814","dublin_core":{"Title":"Water or heat, light and power companies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3814","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any county, city or town may impose a tax on the consumers of the utility service or services provided by any water or heat, light and power company or other corporations coming within the provisions of Chapter 26 (§ 58.1-2600<\/a> et seq.), which tax shall not be imposed at a rate in excess of 20 percent of the monthly amount charged to consumers of the utility service and shall not be applicable to any amount so charged in excess of $15 per month for residential customers. Any city, town or county that on July 1, 1972, imposed a utility consumer tax in excess of limits specified herein may continue to impose such a tax in excess of such limits, but no more. For taxable years beginning on and after January 1, 2001, any tax imposed by a county, city or town on consumers of electricity shall be imposed pursuant to subsections C through J only. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any tax enacted pursuant to the provisions of this section, or any change in a tax or structure already in existence, shall not be effective until 60 days subsequent to written notice by certified mail from the county, city or town imposing such tax or change thereto, to the registered agent of the utility corporation that is required to collect the tax. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any county, city or town may impose a tax on the consumers of services provided within its jurisdiction<\/span> by any electric light and power, water or gas company owned by another municipality; provided, that no county shall be authorized under this section to impose a tax within a municipality on consumers of services provided by an electric light and power, water or gas company owned by that municipality. Any county tax imposed hereunder shall not apply within the limits of any incorporated town located within such county which town imposes a town tax on consumers of utility service or services provided by any corporation coming within the provisions of Chapter 26 (§ 58.1-2600<\/a> et seq.), provided that such town (i) provides police or fire protection, and water or sewer services, provided that any such town served by a sanitary district or service authority providing water or sewer services or served by the county in which the town is located when such service or services are provided pursuant to an agreement between the town and county shall be deemed to be providing such water and sewer services itself, or (ii) constitutes a special school district and is operated as a special school district under a town school board of three members appointed by the town council.\n\t\t\tAny county, city or town may provide for an exemption from the tax for any public safety answering point as defined in § 58.1-3813.1<\/a>.\n\t\t\tAny municipality required to collect a tax imposed under authority of this section for another city or county or town shall be entitled to a reasonable fee for such collection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In a consolidated county wherein a tier-city exists, any county tax imposed hereunder shall apply within the limits of any tier-city located in such county, as may be provided in the agreement or plan of consolidation<\/span>, and such tier-city may impose a tier-city tax on the same consumers of utility service or services, provided that the combined county and tier-city rates do not exceed the maximum permitted by state law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The tax authorized by this section shall not apply to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Utility sales of products used as motor vehicle fuels; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Natural gas used to generate electricity by a public utility as defined in § 56-265.1<\/a> or an electric cooperative as defined in § 56-231.15<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> 1. Any county, city or town may impose a tax on consumers of electricity provided by electric suppliers as defined in \u00a7 58.1-400.2<\/a>.\n\t\t\tThe tax so imposed shall be based on kilowatt hours delivered<\/span> monthly to consumers, and shall not exceed the limits set forth in this subsection. The provider of billing services<\/span> shall bill the tax to all users who are subject to the tax and to whom it bills for electricity service, and shall remit such tax to the appropriate locality in accordance with \u00a7 58.1-2901<\/a>. Any locality that imposed a tax pursuant to this section prior to January 1, 2001, based on the monthly revenue amount charged to consumers of electricity shall convert its tax to a tax based on kilowatt hours delivered<\/span> monthly to consumers, taking into account minimum billing charges. The kilowatt hour tax rates shall, to the extent practicable: (i) avoid shifting the amount of the tax among electricity consumer classes and (ii) maintain annual revenues being received by localities from such tax at the time of the conversion. The current service provider<\/span> shall provide to localities no later than August 1, 2000, information to enable localities to convert their tax. The maximum amount of tax imposed on residential consumers as a result of the conversion shall be limited to $3 per month, except any locality that imposed a higher maximum tax on July 1, 1972, may continue to impose such higher maximum tax on residential consumers at an amount no higher than the maximum tax in effect prior to January 1, 2001, as converted to kilowatt hours. For nonresidential consumers, the initial maximum rate of tax imposed as a result of the conversion shall be based on the annual amount of revenue received from each class<\/span> of nonresidential consumers in calendar year 1999 for the kilowatt hours used that year. Kilowatt hour tax rates imposed on nonresidential consumers shall be based at a class<\/span> level on such factors as existing minimum charges, the amount of kilowatt hours used, and the amount of consumer utility tax paid in calendar year 1999 on the same kilowatt hour usage. The limitations in this section on kilowatt hour rates for nonresidential consumers shall not apply after January 1, 2004. On or before October 31, 2000, any locality imposing a tax on consumers of electricity shall duly amend<\/span> its ordinance<\/span> under which such tax is imposed so that the ordinance<\/span> conforms to the requirements of subsections C through J. Notice of such amendment shall be provided to service providers<\/span> in a manner consistent with subsection B except that “registered agent of the provider of billing services<\/span>” shall be substituted for “registered agent of the utility corporation.” Any conversion of a tax to conform to the requirements of this subsection shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by the locality shall be in effect. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For purposes of this section, “kilowatt hours delivered<\/span>” shall mean in the case of eligible customer-generators, as defined in § 56-594<\/a>, those kilowatt hours supplied from the electric grid to such customer-generators, minus the kilowatt hours generated and fed back to the electric grid by such customer-generators. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Until the consumer pays the tax to such provider of billing services<\/span>, the tax shall constitute a debt to the locality. If any consumer receives and pays for electricity but refuses to pay the tax on the bill that is imposed by a locality, the provider of billing services<\/span> shall notify the locality of the name and address of such consumer. If any consumer fails to pay a bill issued by a provider of billing services<\/span>, including the tax imposed by a locality as stated thereon, the provider of billing services<\/span> shall follow its normal collection procedures with respect to the charge for electric service and the tax, and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for electric service and the tax and (ii) remit the tax portion to the appropriate locality. After the consumer pays the tax to the provider of billing services<\/span>, the taxes shall be deemed to be held in trust by such provider of billing services<\/span> until remitted to the localities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Any county, city or town may impose a tax on consumers of natural gas provided by pipeline distribution companies and gas utilities. The tax so imposed shall be based on CCF delivered monthly to consumers and shall not exceed the limits set forth in this subsection. The pipeline distribution company<\/span> or gas utility<\/span> shall bill the tax to all users who are subject to the tax and to whom it delivers gas and shall remit such tax to the appropriate locality in accordance with § 58.1-2905<\/a>. Any locality that imposed a tax pursuant to this section prior to January 1, 2001, based on the monthly revenue amount charged to consumers of gas shall convert to a tax based on CCF delivered monthly to consumers, taking into account minimum billing charges. The CCF tax rates shall, to the extent practicable: (i) avoid shifting the amount of the tax among gas consumer classes and (ii) maintain annual revenues being received by localities from such tax at the time of the conversion. Current pipeline distribution companies and gas utilities shall provide to localities not later than August 1, 2000, information to enable localities to convert their tax. The maximum amount of tax imposed on residential consumers as a result of the conversion shall be limited to $3 per month, except any locality that imposed a higher maximum tax on July 1, 1972, may continue to impose such higher maximum tax on residential consumers at an amount no higher than the maximum tax in effect prior to January 1, 2001, as converted to CCF. For nonresidential consumers, the initial maximum rate of tax imposed as a result of the conversion shall be based on the annual amount of revenue received and due from each of the nonresidential gas purchase and gas transportation classes in calendar year 1999 for the CCF used that year. CCF tax rates imposed on nonresidential consumers shall be based at a class<\/span> level on such factors as existing minimum charges, the amount of CCF used, and the amount of consumer utility tax paid and due in calendar year 1999 on the same CCF usage. The initial maximum rate of tax imposed under this section shall continue, unless lowered, until December 31, 2003. Beginning January 1, 2004, nothing in this section shall be construed to prohibit or limit any locality from imposing a consumer utility tax on nonresidential customers up to the amount authorized by subsection A.\n\t\t\tOn or before October 31, 2000, any locality imposing a tax on consumers of gas shall duly amend<\/span> its ordinance<\/span> under which such tax is imposed so that the ordinance<\/span> conforms to the requirements of subsections C through J of this section. Notice of such amendment shall be provided to pipeline distribution companies and gas utilities in a manner consistent with subsection B except that “registered agent of the pipeline distribution company<\/span> or gas utility<\/span>” shall be substituted for “registered agent of the utility corporation.” Any conversion of a tax to conform to the requirements of this subsection shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by the locality shall be in effect. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Until the consumer pays the tax to such gas utility<\/span> or pipeline distribution company<\/span>, the tax shall constitute a debt to the locality. If any consumer receives and pays for gas but refuses to pay the tax that is imposed by the locality, the gas utility<\/span> or pipeline distribution company<\/span> shall notify the localities of the names and addresses of such consumers. If any consumer fails to pay a bill issued by a gas utility<\/span> or pipeline distribution company<\/span>, including the tax imposed by a locality, the gas utility<\/span> or pipeline distribution company<\/span> shall follow its normal collection procedures with regard to the charge for the gas and the tax and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for gas service and the tax and (ii) remit the tax portion to the appropriate locality. After the consumer pays the tax to the gas utility<\/span> or pipeline distribution company<\/span>, the taxes shall be deemed to be held in trust by such gas utility<\/span> or pipeline distribution company<\/span> until remitted to the localities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> For purposes of this section:\n\t\t\t“Class of consumers<\/span>” means a category of consumers served under a rate schedule established by the pipeline distribution company<\/span> and approved by the State Corporation Commission.\n\t\t\t“Gas utility<\/span>” has the same meaning as provided in § 56-235.8<\/a>.\n\t\t\t“Pipeline distribution company<\/span>” has the same meaning as provided in § 58.1-2600<\/a>.\n\t\t\t“Service provider<\/span>” and “provider of billing services<\/span>” have the same meanings as provided in subsection E of § 58.1-2901<\/a>, and “class” of consumers means a category of consumers defined as a class by their service provider<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> Nothing in this section shall prohibit a locality from enacting an ordinance<\/span> or other local law<\/span> to allow such locality to impose a tax on consumers of natural gas provided by pipeline distribution companies and gas utilities, beginning at such time as natural gas service is first made available in such locality. The maximum amount of tax imposed on residential consumers based on CCF delivered monthly to consumers shall not exceed $3 per month. The maximum tax rate imposed by such locality on nonresidential consumers based on CCF delivered monthly to consumers shall not exceed an average 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) in localities whose residents<\/span> are being provided natural gas from the same pipeline distribution company<\/span> or gas utility<\/span> or both that is also providing natural gas to the residents<\/span> of such locality. Beginning January 1, 2004, the tax rates for residential and nonresidential consumers of natural gas in such locality shall be determined in accordance with the provisions of subsection H. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWATER OR HEAT, LIGHT AND POWER COMPANIES (\u00a7 58.1-3814)\n\nA. Any county, city or town may impose a tax on the consumers of the utility\nservice or services provided by any water or heat, light and power company or\nother corporations coming within the provisions of Chapter 26 (§ 58.1-2600\net seq.), which tax shall not be imposed at a rate in excess of 20 percent of\nthe monthly amount charged to consumers of the utility service and shall not be\napplicable to any amount so charged in excess of $15 per month for residential\ncustomers. Any city, town or county that on July 1, 1972, imposed a utility\nconsumer tax in excess of limits specified herein may continue to impose such a\ntax in excess of such limits, but no more. For taxable years beginning on and\nafter January 1, 2001, any tax imposed by a county, city or town on consumers of\nelectricity shall be imposed pursuant to subsections C through J only.\n\nB. Any tax enacted pursuant to the provisions of this section, or any change in\na tax or structure already in existence, shall not be effective until 60 days\nsubsequent to written notice by certified mail from the county, city or town\nimposing such tax or change thereto, to the registered agent of the utility\ncorporation that is required to collect the tax.\n\nC. Any county, city or town may impose a tax on the consumers of services\nprovided within its jurisdiction by any electric light and power, water or gas\ncompany owned by another municipality; provided, that no county shall be\nauthorized under this section to impose a tax within a municipality on consumers\nof services provided by an electric light and power, water or gas company owned\nby that municipality. Any county tax imposed hereunder shall not apply within\nthe limits of any incorporated town located within such county which town\nimposes a town tax on consumers of utility service or services provided by any\ncorporation coming within the provisions of Chapter 26 (§ 58.1-2600 et\nseq.), provided that such town (i) provides police or fire protection, and water\nor sewer services, provided that any such town served by a sanitary district or\nservice authority providing water or sewer services or served by the county in\nwhich the town is located when such service or services are provided pursuant to\nan agreement between the town and county shall be deemed to be providing such\nwater and sewer services itself, or (ii) constitutes a special school district\nand is operated as a special school district under a town school board of three\nmembers appointed by the town council.\n\t\t\tAny county, city or town may provide for an exemption from the tax for any\npublic safety answering point as defined in § 58.1-3813.1.\n\t\t\tAny municipality required to collect a tax imposed under authority of this\nsection for another city or county or town shall be entitled to a reasonable fee\nfor such collection.\n\nD. In a consolidated county wherein a tier-city exists, any county tax imposed\nhereunder shall apply within the limits of any tier-city located in such county,\nas may be provided in the agreement or plan of consolidation, and such tier-city\nmay impose a tier-city tax on the same consumers of utility service or services,\nprovided that the combined county and tier-city rates do not exceed the maximum\npermitted by state law.\n\nE. The tax authorized by this section shall not apply to:\n\n 1. Utility sales of products used as motor vehicle fuels; or\n\n 2. Natural gas used to generate electricity by a public utility as defined in\n § 56-265.1 or an electric cooperative as defined in § 56-231.15.\n\nF. 1. Any county, city or town may impose a tax on consumers of electricity\nprovided by electric suppliers as defined in \u00a7 58.1-400.2.\n\t\t\tThe tax so imposed shall be based on kilowatt hours delivered monthly to\nconsumers, and shall not exceed the limits set forth in this subsection. The\nprovider of billing services shall bill the tax to all users who are subject to\nthe tax and to whom it bills for electricity service, and shall remit such tax\nto the appropriate locality in accordance with \u00a7 58.1-2901. Any locality that\nimposed a tax pursuant to this section prior to January 1, 2001, based on the\nmonthly revenue amount charged to consumers of electricity shall convert its tax\nto a tax based on kilowatt hours delivered monthly to consumers, taking into\naccount minimum billing charges. The kilowatt hour tax rates shall, to the\nextent practicable: (i) avoid shifting the amount of the tax among electricity\nconsumer classes and (ii) maintain annual revenues being received by localities\nfrom such tax at the time of the conversion. The current service provider shall\nprovide to localities no later than August 1, 2000, information to enable\nlocalities to convert their tax. The maximum amount of tax imposed on\nresidential consumers as a result of the conversion shall be limited to $3 per\nmonth, except any locality that imposed a higher maximum tax on July 1, 1972,\nmay continue to impose such higher maximum tax on residential consumers at an\namount no higher than the maximum tax in effect prior to January 1, 2001, as\nconverted to kilowatt hours. For nonresidential consumers, the initial maximum\nrate of tax imposed as a result of the conversion shall be based on the annual\namount of revenue received from each class of nonresidential consumers in\ncalendar year 1999 for the kilowatt hours used that year. Kilowatt hour tax\nrates imposed on nonresidential consumers shall be based at a class level on\nsuch factors as existing minimum charges, the amount of kilowatt hours used, and\nthe amount of consumer utility tax paid in calendar year 1999 on the same\nkilowatt hour usage. The limitations in this section on kilowatt hour rates for\nnonresidential consumers shall not apply after January 1, 2004. On or before\nOctober 31, 2000, any locality imposing a tax on consumers of electricity shall\nduly amend its ordinance under which such tax is imposed so that the ordinance\nconforms to the requirements of subsections C through J. Notice of such\namendment shall be provided to service providers in a manner consistent with\nsubsection B except that “registered agent of the provider of billing\nservices” shall be substituted for “registered agent of the utility\ncorporation.” Any conversion of a tax to conform to the requirements of\nthis subsection shall not be effective before the first meter reading after\nDecember 31, 2000, prior to which time the tax previously imposed by the\nlocality shall be in effect.\n\n 2. For purposes of this section, “kilowatt hours delivered” shall\n mean in the case of eligible customer-generators, as defined in § 56-594,\n those kilowatt hours supplied from the electric grid to such\n customer-generators, minus the kilowatt hours generated and fed back to the\n electric grid by such customer-generators.\n\nG. Until the consumer pays the tax to such provider of billing services, the tax\nshall constitute a debt to the locality. If any consumer receives and pays for\nelectricity but refuses to pay the tax on the bill that is imposed by a\nlocality, the provider of billing services shall notify the locality of the name\nand address of such consumer. If any consumer fails to pay a bill issued by a\nprovider of billing services, including the tax imposed by a locality as stated\nthereon, the provider of billing services shall follow its normal collection\nprocedures with respect to the charge for electric service and the tax, and upon\ncollection of the bill or any part thereof shall (i) apportion the net amount\ncollected between the charge for electric service and the tax and (ii) remit the\ntax portion to the appropriate locality. After the consumer pays the tax to the\nprovider of billing services, the taxes shall be deemed to be held in trust by\nsuch provider of billing services until remitted to the localities.\n\nH. Any county, city or town may impose a tax on consumers of natural gas\nprovided by pipeline distribution companies and gas utilities. The tax so\nimposed shall be based on CCF delivered monthly to consumers and shall not\nexceed the limits set forth in this subsection. The pipeline distribution\ncompany or gas utility shall bill the tax to all users who are subject to the\ntax and to whom it delivers gas and shall remit such tax to the appropriate\nlocality in accordance with § 58.1-2905. Any locality that imposed a tax\npursuant to this section prior to January 1, 2001, based on the monthly revenue\namount charged to consumers of gas shall convert to a tax based on CCF delivered\nmonthly to consumers, taking into account minimum billing charges. The CCF tax\nrates shall, to the extent practicable: (i) avoid shifting the amount of the tax\namong gas consumer classes and (ii) maintain annual revenues being received by\nlocalities from such tax at the time of the conversion. Current pipeline\ndistribution companies and gas utilities shall provide to localities not later\nthan August 1, 2000, information to enable localities to convert their tax. The\nmaximum amount of tax imposed on residential consumers as a result of the\nconversion shall be limited to $3 per month, except any locality that imposed a\nhigher maximum tax on July 1, 1972, may continue to impose such higher maximum\ntax on residential consumers at an amount no higher than the maximum tax in\neffect prior to January 1, 2001, as converted to CCF. For nonresidential\nconsumers, the initial maximum rate of tax imposed as a result of the conversion\nshall be based on the annual amount of revenue received and due from each of the\nnonresidential gas purchase and gas transportation classes in calendar year 1999\nfor the CCF used that year. CCF tax rates imposed on nonresidential consumers\nshall be based at a class level on such factors as existing minimum charges, the\namount of CCF used, and the amount of consumer utility tax paid and due in\ncalendar year 1999 on the same CCF usage. The initial maximum rate of tax\nimposed under this section shall continue, unless lowered, until December 31,\n2003. Beginning January 1, 2004, nothing in this section shall be construed to\nprohibit or limit any locality from imposing a consumer utility tax on\nnonresidential customers up to the amount authorized by subsection A.\n\t\t\tOn or before October 31, 2000, any locality imposing a tax on consumers of\ngas shall duly amend its ordinance under which such tax is imposed so that the\nordinance conforms to the requirements of subsections C through J of this\nsection. Notice of such amendment shall be provided to pipeline distribution\ncompanies and gas utilities in a manner consistent with subsection B except that\n“registered agent of the pipeline distribution company or gas\nutility” shall be substituted for “registered agent of the utility\ncorporation.” Any conversion of a tax to conform to the requirements of\nthis subsection shall not be effective before the first meter reading after\nDecember 31, 2000, prior to which time the tax previously imposed by the\nlocality shall be in effect.\n\nI. Until the consumer pays the tax to such gas utility or pipeline distribution\ncompany, the tax shall constitute a debt to the locality. If any consumer\nreceives and pays for gas but refuses to pay the tax that is imposed by the\nlocality, the gas utility or pipeline distribution company shall notify the\nlocalities of the names and addresses of such consumers. If any consumer fails\nto pay a bill issued by a gas utility or pipeline distribution company,\nincluding the tax imposed by a locality, the gas utility or pipeline\ndistribution company shall follow its normal collection procedures with regard\nto the charge for the gas and the tax and upon collection of the bill or any\npart thereof shall (i) apportion the net amount collected between the charge for\ngas service and the tax and (ii) remit the tax portion to the appropriate\nlocality. After the consumer pays the tax to the gas utility or pipeline\ndistribution company, the taxes shall be deemed to be held in trust by such gas\nutility or pipeline distribution company until remitted to the localities.\n\nJ. For purposes of this section:\n\t\t\t“Class of consumers” means a category of consumers served under a\nrate schedule established by the pipeline distribution company and approved by\nthe State Corporation Commission.\n\t\t\t“Gas utility” has the same meaning as provided in §\n56-235.8.\n\t\t\t“Pipeline distribution company” has the same meaning as provided\nin § 58.1-2600.\n\t\t\t“Service provider” and “provider of billing services”\nhave the same meanings as provided in subsection E of § 58.1-2901, and\n“class” of consumers means a category of consumers defined as a\nclass by their service provider.\n\nK. Nothing in this section shall prohibit a locality from enacting an ordinance\nor other local law to allow such locality to impose a tax on consumers of\nnatural gas provided by pipeline distribution companies and gas utilities,\nbeginning at such time as natural gas service is first made available in such\nlocality. The maximum amount of tax imposed on residential consumers based on\nCCF delivered monthly to consumers shall not exceed $3 per month. The maximum\ntax rate imposed by such locality on nonresidential consumers based on CCF\ndelivered monthly to consumers shall not exceed an average of the tax rates on\nnonresidential consumers of natural gas in effect (at the time natural gas\nservice is first made available in such locality) in localities whose residents\nare being provided natural gas from the same pipeline distribution company or\ngas utility or both that is also providing natural gas to the residents of such\nlocality. Beginning January 1, 2004, the tax rates for residential and\nnonresidential consumers of natural gas in such locality shall be determined in\naccordance with the provisions of subsection H.\n\nHISTORY: Code 1950, \u00a7 58-617.2; 1966, c. 540; 1971, Ex. Sess., c. 90; 1972, cc.\n338, 459; 1975, c. 55; 1976, c. 565; 1982, c. 616; 1984, cc. 154, 675, 695;\n1986, c. 38; 1992, c. 399; 1995, cc. 553, 590; 1998, c. 337; 1999, c. 971; 2000,\ncc. 614, 691, 706, 1064; 2001, cc. 737, 748; 2004, cc. 8, 159; 2008, c. 883;\n2012, cc. 4, 582.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}