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Billings and Collections
Consumer Utility Tax
Effective January 1, 2001
The Consumer Utility Tax is based on §§ 32-168 et. seq. of the Code of the City of Roanoke. The tax is imposed and levied by the City of Roanoke on each and every purchaser of a utility service. This applies to Water, Electric, and Gas utilities.
See also Sections 58.1-3812 et. seq. of the Code of Virginia
RATE OF TAX:
Water Service:
The rate of tax is twelve percent (12%) of the charge made by the seller against the purchaser for each water utility service. This tax does not apply to sewer service.
Telephone Service:
Effective January 1, 2007; the telephone consumer utility tax will be restructured and collected by the Commonwealth of Virginia's Department of Taxation. Communications Taxes
Electric Consumer Utility Tax
(a) In accordance with Section 58.1-3814 of the Code of Virginia (1950) as amended, there is hereby imposed and levied a monthly tax on each purchase of electricity delivered to consumers by a service provider, classified as determined by such provider, as follows:
(1) Residential consumers: such tax shall be the greater of: (a) the rate of $0.00780 for the first 1,000 kWh or fraction thereof delivered monthly to such consumer by a service provider and $0.00450 for each kWh over the first 1,000 kWh or fraction thereof delivered monthly to such consumer by a service provider; or (b) twelve percent (12%) of the minimum monthly charge made by the seller against the purchaser with respect to each utility service; provided however, that during the periods of October first of each year through May thirty-first next following, the tax imposed shall not be deemed to apply to that part of the charge in excess of fifteen dollars ($15.00) per month made by an seller of electricity to a purchaser thereof under a domestic service contract who uses electricity as the principal source of space heating in a purchaser-occupied private home or a purchaser-occupied private residential unit, on each separate meter or location of purchaser.
(2) Non-residential consumers; such tax on non-residential consumers shall be at the rates per month for the classes of non-residential consumers as set forth below:
(i) Commercial consumers: such tax shall be the greater of (a) the rate of $0.00800 for the first 1,000 kWh or fraction thereof delivered monthly to such consumer by a service provider, and $0.00540 on each kWh over the first 1,000 kWh or fraction thereof delivered monthly to such consumer by a service provider; or (b) twelve percent (12%) of the minimum monthly charge imposed by the service provider.
(ii) Industrial consumers: such tax shall be the greater of: (a) the rate of $0.00680 for the first 1,000 kWh or fraction thereof delivered monthly to such consumer by a service provider, and $0.00395 on each kWh over the first 1,000 kWh or fraction thereof delivered monthly to such consumer by a service provider; or (b) twelve percent (12%) of the minimum monthly charge imposed by the service provider
Natural Gas Consumer Utility Tax
(a) In accordance with Section 58.1-3814 of the Code of Virginia (1950), as amended, there is hereby imposed and levied a monthly tax on each purchase of natural gas delivered to consumers by pipeline distribution companies and gas utilities classified by "class of consumers" as such term is defined in Virginia Code Section 58.1-3814 J, as follows:
(1) Residential consumers: such tax shall be the greater of (a) the rate of $0.13 per CCF or fraction thereof delivered monthly to such consumer by a service provider; or (b) twelve percent (12%) of the minimum monthly charge made by the seller against the purchaser with respect to each utility service; provided, however, that during the periods from October first of each year through May thirty-first next following, the tax herein imposed shall not be deemed to apply to that part of the charge in excess of fifteen dollars ($15.00) per month made by any seller of gas to a purchaser thereof under a domestic service contract who uses such gas as the principal source of space heating in a purchaser-occupied private home or a purchaser-occupied private residential unit, on each separate meter or location of the purchaser.
(2)Non-residential consumers: such tax shall be at the rates per month shown for each CCF delivered by a pipeline distribution company or a gas utility for the classes as set forth below:
(i)Commercial consumers: such tax shall be the greater of: (a) the rate of $0.08 per CCF or fraction thereof delivered monthly to such consumer by a service provider; or (b) twelve percent (12%) of the minimum monthly charge made by the seller against the purchaser with respect to each utility service.
(ii)Industrial consumers: such tax shall be the greater of: (a) the rate of $0.008 per CCF on each CCF delivered monthly to industrial consumers; or (b) twelve percent (12%) of the minimum monthly charge made by the seller against the purchaser with respect to each utility service.
AND, with respect to each utility service purchased, the amount of any single tax imposed upon the purchaser thereof shall be limited to a maximum $2,400 per month, applied to each separate meter or location of the purchaser.
EXEMPTIONS:
- The United States of America and the state and the political subdivisions, boards, commissions, and authorities thereof are exempt from the payment of the Utility Service Tax with respect to the purchase of utility services used by such governmental agencies.
MONTHLY REMITTANCE PROCEDURES:
The seller must complete and sign a monthly remittance form indicating the total amount of utility services purchased, the total deductions, and the total tax required to be collected and remitted. The seller is also required to record the name and address of any purchaser who has refused to pay the tax.
For water utility service, the monthly report along with the tax remittance must be received by the City Treasurer's Office by the 20th of the month for taxes collected in the preceding month. For electricity and natural gas utility service, the monthly report along with the tax remittance must be received by the City Treasurer's Office on or before the last day of the succeeding month of collection covering the amount of tax collected during the preceding month. The seller may use the mail, but the responsibility for late delivery rests with the seller. If the payment due date falls on a weekend or a government holiday, the next business day shall become the due date.
Make all checks payable to: City of Roanoke, Treasurer.
Mail all payments to:
City of Roanoke, Treasurer
P. O. Box 1451
Roanoke, VA 24007-1451
TRUST TAX:
It is important to remember that this tax is a "trust" fund tax. That means that the tax is collected by the service provider from their customers and temporarily held in trust before being remitted to the City of Roanoke. It should not be used for any other financial obligation or purpose.
REGISTRATION FOR TAX COLLECTION FORM:
The Registration for Tax Collection Form must be completed by each seller. This form must also be completed each time there is any change to the information listed, such as address changes.
RECORDS RETENTION:
The seller must maintain for three years complete records showing all purchases of utility service in the city. The records shall also show the price charged against each purchaser with respect to the purchase, the date of each charge, the date of payment, and the amount of tax, as well as any other information necessary to support the amounts reported, including the basis for the charge such as consumption and rates. These records are subject to inspection and audit.
PENALTIES:
If the tax remittance and report is not received in the City Treasurer's Office by the due date, a ten percent (10%) penalty will be assessed.
FAILURE TO PAY OR VIOLATIONS OF CODE:
Any purchaser failing, refusing or neglecting to pay the tax imposed and any seller, officer, agent or employee of any seller violating any provision of the Code governing this tax, shall be guilty of a Class 1 misdemeanor.
Until the consumer pays the tax to the service provider, the tax shall constitute a debt to the locality. If any consumer receives and pays for service, but refuses to pay the tax on the bill that is imposed by the locality, the service provider shall notify the locality of the name and address of such consumer.
CLOSING OF BUSINESS:
Whenever any seller required to collect and pay to the City the Tax on the Purchase of Utility Services ceases to operate or otherwise dispose of the business, the reporting form and any tax and penalties due shall be immediately filed and paid.
FOR MORE INFORMATION CONTACT:
Billings and Collections
215 Church Avenue, SW, Room 212
Roanoke, VA 24011-1513
(540) 853-6825 or (540) 853-2880
Email: billings@roanokeva.gov
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