HomeMy Public PortalAbout1975_05_19SPEC •
NOTICE
OF
SPECIAL MEETING
Notice is hereby given that there will be a Special
Meeting of the Leesburg Town Council in the Council Cham-
bers, 10 West Loudoun Street , Leesburg, Virginia, on Mon-
day, May 19, 1975 at 3 :50 P.M. , for the purpose of amend-
ing the Utility Tax Ordinance which was adopted on May 14,
1975 , and any other routine matter that may come before
Council.
G. DEWS HILL/
May r
37_
MINUTES OF SPECIAL MEETING OF LEESBURG TOWN COUNCIL, MAY 19, 1975 .
A special meeting of the Leesburg Town Council was held on May
19, 1975 at 3:50 P.M. in the Council Chambers , 10 West Loudoun Street ,
Leesburg, Virginia , pursuant to Notice attached hereto. The meeting
was called to order by Mayor Hill, who explained that the purpose of
this meeting is to amend the Utility Tax Ordinance adopted by Council
at its regular meeting of May 14 , 1975 . Present were : Mayor G.
Dewey Hill, Councilmen Charles E. Bange, Mary Anne Newman, Robert A.
•
Orr, C. Terry Titus and Herbert L. Ridder; also Acting Town Manager
E. Wesley Devero and Town Attorney George M. Martin. 4
Mr. Devero explained that the Ordinance adopted at Council ' s
May 14 Bga},Bg was in line with the County 's Ordinance, which was
enacted 1972 . This ordinance does not reflect the State Code
changes . The tax rate structure has been studied and he and Mayor
Hill met this afternoon with representatives of VEPCO and C & P
Telephone Company, at which time amendments were discussed. Mr.
Devero explained that Council does not wish to increase these taxes
to the citizens of Leesburg, but desires to put into the Town 's
coffers the utility taxes that the County has been collecting.
Mr. Timberlake, Treasurer for the Town, explained in detail
the changes proposed , pointing out that these rates would project
approximately the same amount of revenue anticipated heretofore.
Mr. Ed Bradley, District Manager of VEPCO, and Mr. Robert
Manning , tax expert from the Richmond office of VEPCO, were present.
Mr. Bradley read a prepared statement concerning a proposal from
VEPCO to collect73 per cent billing fee before utility taxes are
forwarded to localities , this request to be made to all localities
where utility taxes are collected by VEPCO. He explained that it
is felt that this will be law by action of the General Assembly at
its next session. Lengthy discussion followed concerning this re-
quest, as well as the percentage to be collected on VEPCO bills .
Mr. Manning explained that the 3 per cent would be deducted at the
time bills are sent to citizens. It was felt that this 3 per cent
deduction should be considered at the time the request is received
from VEPCO, not at this time.
On motion of Councilman Titus , seconded by Councilman Orr, the
following ordinance was proposed; with Council consenting unanimously
tb'yeitig reading of same :
BE IT ORDAINED, that the Town Code be amended to repeal the
Utility Tal: Ordinance adopted May 14, 1975 , and to enact in
its place the following Ordinance :
AN ORDINANCE TO LEVY A TAX ON THE PURCHASES
OF UTILITY SERVICES, FIX THE AMOUNT OF TAX,
PROVIDE FOR ITS COLLECTION, AND PRESCRIBE
PENALTIES FOR THE VIOLATION OF THIS ORDINANCE
WHEREAS, it is necessary that provision be made to
levy a tax (in addition to other taxes imposed) herein-
after set forth, and provide for the collection thereof for
the purpose of providing revenue for the General Fund for
municipal purposes , and
WHEREAS, an emergency exists in order that the
Utility Companies may be advised as soon as possible,
NOW, THEREFORE, BE IT ORDAINED by the Town Council
of the Town of Leesburg, Virginia, that, pursuant to
Sections 58-587 . 1 and 58-617 . 2 of the 1950 Code of Vir-
ginia (Chapter 540, Acts of Assembly of 1966), as amended:
SECTION 1. Definitions :
The following words and phrases used in this ordinance
shall, for the purposes of this ordinance, have the follow-
ing respective meanings, except where the context clearly
indicates a different meaning:
38
MINUTES OF MAY 19, 1975 SPECIAL- MEETING-
(A) PERSON. The word "person" shall include
individuals , firms, partnerships , associations, cor-
porations , and combinations of individuals of what-
ever form and character.
(B) PURCHASER. The word "purchaser" shall include
every person who purchases a utility service.
(C) SELLER. The word 'seller" shall include
every person, whether a public service corporation,
political subdivision within the County, or private
corporation, or not, who sells or furnishes a utility
service within the municipality.
(D) UTILITY SERVICE. The term "utility service"
shall include local exchange telephone service, elec-
tric service and gas service furnished within the mu-
nicipality.
(E) RESIDENTIAL USER. The term "residental user"
shall mean the owner or tenant of private residential
property used in maintaining a place of abode or in
normal farming operations or a tenant of an apartment
who pays for utility service in or for said property.
(F) COWERCIAL OR INDUSTRIAL USER. The term
"commercial or industrial user" shall mean the owner
or tenant of property which is not residential in
character or is used for commercial, professional or
industrial purposes, including the owner of master
metered apartment buildings who pays for utility
service for said property.
SECTION 2. Amount of Tax :
There is hereby imposed and levied by the Town of Lees-
burg,
Virginia, upon each and every purchaser of a utility
service a tax in the following amounts :
(A) Residential Electric and Gas Users :
(1) on the first fifteen (15) dollars
of net charge per residential user
per month 167 .
(B) Residential Local Exchange Telephone Service :
(1) on the first fifteen (15) dollars
of net charge per residential user
per month 97 .
(C) Commercial or Industrial Users (all
utilities) :
(1) on _the first three hundred (300)
dollars of net charge per commer-
cial or industrial user per
month 97 .
SECTION 3. Utility Bills , Monthly or Otherwise :
Utility bills shall be considered monthly bills if sub-
mitted twelve times annually for a period of approximately one
month or portion thereof. In case bills are submitted by any
seller for more than one month 's utility service, the amount
of said bill included in computing the tax shall be the net
charges allowed herein multiplied by the number of months for
which said bill is submitted.
SECTION 4 . Duty of Seller, Generally :
(a) It shall be the duty of every seller in acting
as the tax collecting medium or agency for the Town of
39
MINUTES OF MAY 19, 1975 SPECIAL MEETING.
Leesburg to collect from the purchaser for the use of
the municipality the tax hereby imposed and levied at
the time of collecting the purchase price charged there-
for and the taxes collected during each calendar month
shall be reported by each seller to the municipal
treasurer and, simultaneously, each seller shall re-
mit the amount of tax shown by said report to have been
collected to the municipal treasurer on or before the
last day of the first calendar month thereafter, to-
gether with the name and address of any purchaser who
has refused to pay his tax. The tax levied or imposed
under this ordinance with respect to the purchase of
any gas or electric service, shall become effective on
bills rendered on meter readings, on and after July 19,
1975 and with- respect to local telephone service on charges
first appearing on bills rendered on July 19, 1975 and theeafter.
(B) In all cases where the seller collects the
price for utility service in stated periods , the tax
imposed and levied by this ordinance shall be computed
on the amount of purchase during the month or period
according to each bill rendered, provided the amount
of tax to be collected shall be the nearest whole cent
to the amount computed.
(C) Each and every seller shall keep complete
records showing all purchases in the municipality,
which records shall show the price charged against each
purchaser with respect to each purchase, the date there-
of, and the date of payment thereof, and the amount
of tax imposed hereunder and such record shil be kept
open for inspection by the duly authorized agents of
the municipality at reasonable times , and the duly
authorized agents of the municipality shall have the
right, power and authority to make such transcripts
thereof during such times as they may desire.
SECTION 5 . Collection of Taxes from Seller:
(A) The municipal treasurer shall be charged
with the power and the duty of collecting the taxes
levied and imposed hereunder and shall cause the same
to be paid into the General Fund of the municipality.
SECTION 6 . Exceptions .
(A) The tax imposed and levied by this ordinance
on purchasers with respect to telephone service shall
apply to all charges made for local telephone exchange
service except as follows :
(1) Coin box telephone. The total amount
of the guaranteed charge on each bill rendered
for semi-public coin box telephone service shall
be included in the basis for the tax with re-
spect to the purchaser of such service, but no
other tax shall be imposed on telephone service ,
paid for by inserting coins in coin-operated
telephones.
(2) Flat rate service. With respect to
flat rate service, the tax shall apply to only
the amount payable for the local area service
and shall not apply to any specific charge for
calls to points outside the municipality or to
any general charge or rate differential payable
for the privilege of calling points outside the •
municipality or for mileage service charges .
(3) Message rate service. Where purchasers
of telephone service are charged on a message rate
basis , the tax shall apply only to the basic charge
for such service and shall not apply to any charge
for additional message units .
40
MINUTES OF MAY 19, 1975 SPECIAL MEETING. -
(B) There shall be no tax computed on bills sub-
mitted for electric service for heating water and space
heating where a separate meter is used solely for water
heating and space heating service or on bills submitted
for unmetered electric service .
(C) The United States of America, diplomatic per-
sonnel' exempted by the laws of the United States, the
State of Virginia, and the political subdivisions,
boards , couauissions and authorities thereof are hereby
exempted from the payment of the tax imposed and levied
by this ordinance with respect to the purchase of u-
tility services used by such governmental agencies .
SECTION 7 . Penalties:
Any purchaser failing , refusing or neglecting, after
five (5) days from receipt of notice by the treasurer for
the municipality that the tax is delinquent, to pay the tax
imposed or levied by this ordinance , and any seller violat-
ing the provisions of this ordinance , and any offcier, agent
or employee of any seller violating the provisions of this
ordinance shall be guilty of a misdemeanor and shall, upon
conviction, be subject to a fine of not less than ten dol-
lars ($10 .00) nor more than three hundred dollars ($300.00)
or by imprisonment in jail for not more than three months,
or by both such fine and imprisonment. Each failure , re-
fusal, neglect or violation and each day ' s continuance there-
of shall constitute a separate offense. Such conviction
shall not relieve any person from the payment , collection
and remittance of such tax as provided by this ordinance .
SECTION 8 . Severability Clause:'
If any section, subsection, sentence, clause , phrase,
part or provision of this ordinance shall be declared un-
constitutional, void, or invalid for any reason, the validity
of the remaining portions of this ordinance shall not be af-
fected thereby , but shall continue in full force and effect .
SECTION 9. Effective Date :
The effective date of this ordinance shall be on and
after May 19, 1975 .
After discussion on the effective date of this ordinance, it was unani-
mously adopted, as shown :
Aye : Councilmen Bange, Newman, Orr, Ridder, Titus and
Mayor Hill .
Nay : None .
On motion of Councilman Orr, seconded by Councilman Ridder, the
meeting was adjourned at 4 :48 P.M.
ALY Mayor'G
/LLtL1
rk of t Council