State legislation that became effective on January 1,
2001 replaced 3 existing taxes with a new state-wide "Consumption
Tax." The 3 taxes that were replaced are:
The State Gross
Receipts Tax
A regulatory tax imposed by the State Corporation
Commission
The Local Utility License Tax
As a result of the state legislation, consumers now
see a line on their electricity and natural gas bills that says
"Consumption Tax." Although the line on the bill is new, consumers have
been paying the three taxes indirectly for years. These taxes were
"imbedded" in the rates of the utility companies and are now separated
from the rates and considered as a single tax.
The rates for the local (Roanoke City) portion of the
Consumption Tax for both the electric and natural gas utilities are
specified by Sections 58.1-2900 and 58.1-2904, respectively, of the Code
of Virginia.