                                 CODE OF VIRGINIA

IMPOSITION OF TAX (§ 58.1-2904)

A. There is hereby imposed, in addition to the local consumer utility tax of
Article 4 (&#xA7; 58.1-3812 et seq.) of Chapter 38, a tax on the consumers of
natural gas in the Commonwealth based on volume of gas at standard pressure and
temperature in units of 100 cubic feet (CCF) delivered by the pipeline
distribution company or gas utility and used per month. Each consumer of natural
gas in the Commonwealth shall pay tax on the consumption of all natural gas
consumed per month not in excess of 500 CCF at the following rates: (i) state
consumption tax rate of $0.0135 per CCF, (ii) local consumption tax rate of
$0.004 per CCF, and (iii) a special regulatory tax rate of up to $0.0026 per
CCF.

B. The tax rates set forth in subsection A are in lieu of and replace the state
gross receipts tax pursuant to &#xA7; 58.1-2626, the special regulatory revenue
tax pursuant to &#xA7; 58.1-2660, and the local license tax pursuant to &#xA7;
58.1-3731 levied on corporations furnishing heat, light or power by means of
natural gas.

C. The tax of consumers under this section shall not be imposed on consumers
served by a gas utility owned or operated by a municipality.

D. The tax authorized by this chapter shall not apply to use by divisions or
agencies of federal, state and local governments.

HISTORY: 2000, cc. 691, 706; 2020, c. 697.