                                 CODE OF VIRGINIA

WATER OR HEAT, LIGHT AND POWER COMPANIES (§ 58.1-3814)

A. 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 (&#xA7; 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. 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.

C. 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 (&#xA7; 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.
			Any county, city or town may provide for an exemption from the tax for any
public safety answering point as defined in &#xA7; 58.1-3813.1.
			Any 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. 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.

E. The tax authorized by this section shall not apply to:

   1. Utility sales of products used as motor vehicle fuels; or

   2. Natural gas used to generate electricity by a public utility as defined in
   &#xA7; 56-265.1 or an electric cooperative as defined in &#xA7; 56-231.15.

F. 1. Any county, city or town may impose a tax on consumers of electricity
provided by electric suppliers as defined in § 58.1-400.2.
			The 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 § 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 &#8220;registered agent of the provider of billing
services&#8221; shall be substituted for &#8220;registered agent of the utility
corporation.&#8221; 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. For purposes of this section, &#8220;kilowatt hours delivered&#8221; shall
   mean in the case of eligible customer-generators, as defined in &#xA7; 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. 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.

H. 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 &#xA7; 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.
			On 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
&#8220;registered agent of the pipeline distribution company or gas
utility&#8221; shall be substituted for &#8220;registered agent of the utility
corporation.&#8221; 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. 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.

J. For purposes of this section:
			&#8220;Class of consumers&#8221; means a category of consumers served under a
rate schedule established by the pipeline distribution company and approved by
the State Corporation Commission.
			&#8220;Gas utility&#8221; has the same meaning as provided in &#xA7;
56-235.8.
			&#8220;Pipeline distribution company&#8221; has the same meaning as provided
in &#xA7; 58.1-2600.
			&#8220;Service provider&#8221; and &#8220;provider of billing services&#8221;
have the same meanings as provided in subsection E of &#xA7; 58.1-2901, and
&#8220;class&#8221; of consumers means a category of consumers defined as a
class by their service provider.

K. 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.

HISTORY: 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;
2012, cc. 4, 582.