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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