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    Home » Sec. 36-187.1. Electric and Natural Gas Consumers Tax.

    Sec. 36-187.1. Electric and Natural Gas Consumers Tax.

     

    Sec. 36-187.1. Electric and natural gas consumers tax.
     
    Notwithstanding any other ordinance or other enactment heretofore adopted and currently in force in the city, the following is hereby adopted and ordained to be effective as set forth hereinbelow:
     
    (a) Definitions
     
    CCF: means the volume of gas at standard pressure and temperature in units of 100 cubic feet.
     
    Consumer: means every person who, individually or through agents, employees, officers, representatives or permitees, makes a taxable purchase of electricity or natural gas services in the city.
     
    Commercial consumer: means a consumer of natural gas or electric utility service provided to property used primarily for commercial purposes as classified by the utility service provider.
     
    Electric utility: means a public utility authorized to furnish electric service to consumers in the Commonwealth of Virginia.
     
    Gas utility: means a public utility authorized to furnish natural gas service in the Commonwealth of Virginia.
     
    Kilowatt hours (kWh) delivered: means 1000 watts of electricity delivered in a one-hour period by an electric provider to an actual consumer, except that in the case of eligible customer-generators (sometimes called cogenerators) as defined in Virginia Code §56-594 (or any succeeding section of the state code), it means kWh supplied from the electric grid to such customer-generators, minus the kWh generated and fed back to the electric grid by such customer-generators.
     
    Person: means any individual, partnership, corporation, company or any other entity.
     
    Pipeline distribution company: means a person, other than a pipeline transmission company which transmits, by means of a pipeline, natural gas, manufactured gas or crude petroleum and the products or byproducts thereof to a purchaser for purposes of furnishing heat, light or power.
     
    Residential consumer: means the owner or tenant of property used primarily for residential purposes, including but not limited to, apartment houses and other multiple-family dwellings.
     
    Service provider: means a person who delivers electricity to a consumer or a gas utility or pipeline distribution company which delivers natural gas to a consumer.
     
    Used primarily: relates to the larger portion of the use for which electric or natural gas utility service is furnished.
     
    Utility service: means the provision of electricity or natural gas for consumption by consumers.
     
    (b) Electric utility consumer tax.
     
    In accordance with Virginia Code §58.1-3814 (or any succeeding section of the State Code), effective January 1, 2001, there is hereby imposed and levied a monthly tax, on a "per meter" basis, 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 $0.00460 for the first 1000 kWh or fraction thereof delivered monthly to such consumer by a service provider, and $0.00260 for each kWh over the first 1,000 kWh delivered monthly to such consumer by a service provider; or (b) seven percent (7%) of the minimum monthly charge imposed by the service provider.
     
    (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 $0.00480 for the first 1000 kWh or fraction thereof delivered monthly to such consumer by a service provider and $0.00292 for each kWh over the first 1,000 kWh delivered monthly to such consumer by a service provider; or (b) seven percent (7%) of the minimum monthly charge imposed by the service provider.
     
    (ii) Industrial consumers: such tax on industrial consumers as defined in Divisions B and D, and Major Group 46 and Industry Number 4922 of Major Group 49 of Division E of the Standard Industrial Classification Manual of the U. S. Office of Management and Budget shall be the greater of $0.00375 for the first 1000 kWh or fraction thereof delivered monthly to such consumer by a service provider; and $0.00260 for each kWh over the first 1,000 kWh delivered monthly to such consumer by a service provider; or (b) seven percent (7%) of the minimum monthly charge imposed by the service provider.
     
    (iii) All other classes of non-residential customers: such tax shall be the greater of $0.00480 for the first 1000 kWh or fraction thereof delivered monthly to such consumer by a service provider and $0.00292 for each kWh over the first 1,000 kWh delivered monthly to such consumer by a service provider; or (b) seven percent (7%) of the minimum monthly charge imposed by the service provider.
     
    (3) The conversion of tax pursuant to this ordinance to monthly kWh delivered shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by this jurisdiction shall be in effect.
     
    (c) Local natural gas utility consumer tax.
     
    In accordance with Virginia Code §58.1-3814 (or any succeeding section of the State Code), there is hereby imposed and levied a monthly tax, on a "per meter" basis, 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 §58.1-3814 J., as follows:
     
    (1) Residential consumers: such tax on residential consumers of natural gas shall be $0.86 per month plus at the rate of $0.05088 on each CCF or fraction thereof delivered monthly to residential consumers.
     
    (2) Non-residential consumers: such tax on non-residential consumers 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 on commercial consumers of natural gas shall be $1.63 per month plus at the rate of $0.02689 on each CCF or fraction thereof delivered monthly to commercial consumers.
     
    (ii) Industrial consumers: industrial consumers are defined in Divisions B and D, and Major Group 46 and Industry Number 4922 of Major Group 49 of Division E of the Standard Industrial Classification Manual of the U. S. Office of Management and Budget and such tax on industrial consumers of natural gas shall be $1.63 per month plus at the rate of $0.00256 on each CCF or fraction thereof delivered monthly to commercial consumers.
     
    (iii) All other classes of non-residential customers: such tax shall be $1.63 per month plus at the rate of $0.02689 on each CCF or fraction thereof delivered monthly to such customers.
     
    (3) The conversion of tax pursuant to this ordinance to monthly CCF delivered shall not be effective before the first meter reading after December 31, 2000, prior to which time the tax previously imposed by this jurisdiction shall be in effect.
     
    (d) Billing, collection and remittance of tax. The service provider shall bill the natural gas consumer tax to all users who are subject to the tax and to whom it delivers natural gas and shall remit the same to this jurisdiction on a monthly basis. Such taxes shall be paid by the service provider to this jurisdiction in accordance with Virginia Code §58.1-3814, paragraphs H. and I., and Virginia Code §58.1-2901 (or any succeeding sections of the State Code). If any consumer fails to pay a bill issued by a service provider, including the tax imposed by this section, the service provider must follow its normal collection procedures and upon collection of the bill or any part thereof must apportion the net amount collected between the charge for electric service and the tax and remit the tax portion to the City.
     
    It shall be the duty of every seller in acting as the tax-collecting medium or agency for the city to collect from the purchaser for the use of the city the tax hereby imposed and levied at the time of collecting the purchase price charged therefor and the taxes collected during each calendar month shall be reported and remitted by each seller to the commissioner of the revenue on or before the fifteenth day of the second calendar month thereafter, together with the name and address of any purchaser who has refused to pay his tax.
     
    The required reports shall be in the form prescribed by the commissioner of the revenue. All remittances received hereunder by the commissioner of the revenue shall be promptly turned over by him to the collector of city taxes.
     
    Each and every seller shall keep complete records showing all purchases in the city, which records shall show the price charges against each purchaser with respect to each purchase, the date thereof, and the date of payment thereof, and the amount of tax imposed hereunder. Such records shall be kept open for inspection by the duly authorized agents of the city at reasonable times. The duly authorized agents of the city shall have the right, power and authority to make such transcripts thereof during such times as they may desire.
     
    Any tax paid by the consumer to the service provider shall be deemed to be held in trust as a fiduciary for and on behalf of the city by such provider until remitted to the city.
     
    If any person whose duty it is to do so shall fail or refuse to remit to the city the tax required to be collected under this section within the time and in the amount specified in this section, there shall be added to such tax a penalty in the amount of ten (10) percent, with a minimum penalty of two dollars ($2.00). In addition, interest at the rate of ten (10) percent per annum shall be computed and collected upon the taxes and penalty beginning thirty (30) days from the date such taxes were due and payable.
     
    (e) Exemptions. The United States of America, the Commonwealth of Virginia, and the political subdivisions, boards, commissions and authorities thereof are hereby exempt from the payment of the tax imposed and levied by this section with respect to the purchase of utility services used by such governmental agencies.
     
    (f) Maximum Tax Allowable. Effective on and after July 1, 1995, for the fiscal year beginning July 1, 1995 and ending June 30, 1996, and for each fiscal year thereafter, unless otherwise changed by city council, the utility taxes paid by a purchaser on each utility service purchased from each industrial point of service shall be capped at and shall not exceed the sum of one hundred thirty thousand dollars ($130,000) per fiscal year.
     
    (g) Penalties. Any consumer of electricity or natural gas failing, refusing or neglecting to pay the tax imposed and levied under this ordinance, and any officer, agent or employee of any service provider violating the provisions of this ordinance shall, in addition to any other penalty provided by law be guilty of a class 1 misdemeanor. Each such failure, refusal, neglect or violation shall constitute a separate offense. Such conviction shall not relieve any person from the payment, collection and remittance of the tax as provided in this ordinance.
     
    Any person who willfully fails to bill, collect, remit or truthfully account for and pay over to the city the consumer utility tax as provided in this section, or who willfully attempts in any manner to evade or defeat any such tax, or the billing, collection or remittance thereof, shall, in addition to all other penalties provided by law, be liable to the city for a penalty in an amount equal to such tax.
     
    The term "person" as used in this section specifically includes any officer, agent and employee of any person as defined in this section who is under a duty to perform on behalf of that person the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.
     
    A criminal conviction pursuant to this section shall not relieve any such person from the payment, collection and remittance of the tax as otherwise provided in this article. (Ord. No. O-00-218, 10-17-00)
     
    Last updated date: 10/23/2006 4:15:21 PM