HomeMy Public PortalAbout2000_10_17_O030 Amending Chapter 17 Tax on Purchase of Utility ServicesThe Town of
Leesburg,
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PRESENTED October 17, 2000
AODPTED October 17, 2000
AN ORDINANCE:
AMENDING CHAPTER 17, ARTICLE III, TAX ON PURCHASES OF
UTILITY SERVICES, OF THE TOWN CODE TO INCORPORATE
CHANGES TO THE METHOD OF CALCULATING THE TAX ON
ELECTRIC AND NATURAL GAS SERVICES REQUIRED BY STATE
LAW AND TO MAKE OTHER CORRESPONDING CHANGES
WHEREAS, it is a requirement of a recent amendment to state law that Chapter 17, Article
III, Tax on Purchases of Utility Services, of the Town Code be amended to incorporate changes to
the method for calculating the consumer utility tax for electric and natural gas customers from a
tax based on the amount of the bill to one based on the amount of the energy consumed; and
WHEREAS, as required by state law, to the extent practicable, the rates for the proposed
taxes have been designed to avoid shifting tax burdens and to maintain the Towns' revenues; and
WHEREAS, the ordinance also proposes to make some changes to the provisions
governing the consumer tax on telephone service which are not material and do not change the tax
rate for such service.
THEREFORE,
follows:
SECTION I.
ORDAINED by the Council of the Town of Leesburg in Virginia as
Sections 17-88 through 17-94 of Article III of the Town Code are amended
as follows:
Sec. 17-88. Definitions
The following words and phrases used in this article shall, for the purposes of this
article, have the following respective meanings, except where the context clearly
indicates a different meaning:
"CCF" shall mean the volume of gas at standard pressure and temperature in units
of 100 cubic feet.
Commercial or industrial user shall mean the e'amer er ten~.t person who owns,
leases or occupies of property, which is not residential in character or is used
primarily for commercial, professional or industrial purposes, including the owner
AN ORDINANCE:
-2-
AMENDING CHAPTER 17, ARTICLE III, TAX ON PURCHASES OF
UTILITY SERVICES, OF THE TOWN CODE TO INCORPORATE
CHANGES TO THE METHOD OF CALCULATING THE TAX ON
ELECTRIC AND NATURAL GAS SERVICES REQUIRED BY STATE
LAW AND TO MAKE OTHER CORRESPONDING CHANGES
of master metered apartment buildings who pays for utility service for such
property.
"P-~chaser" "Consumer" shall mean every person who, individually or through
agents, employees, officers, representatives or permittees, makes a taxable purchase
o__f a utility service.
"Intermptible Service" when used in connection with natural gas service shall mean
service which is provided to any consumer on an interruptible basis, i.e., where the
provider has the right to curtail or interrupt delivery of natural gas whenever, in the
sole judgment of the provider, natural gas is not available for delivery.
Residential '~'ser consumer shall mean the owner er teno~t ef private residential
person who owns, leases or occupies residential property used ~- mainta;.n'~ng a
primarily for residential or agricultural pu~oses and who pays for utility se~ice in
or for such prope~y.
Seller shall include every person, whether a public service corporation, political
subdivision within the county or private corporation, or not, who sells or
delivers a utility service to a consumer within the municipality.
Utility service shall include local exchange telephone service, electric service and
gas service furnished within the municipality. (Ord. ef 5 !9-75, § !)
Sec. 17-89. Imposed; amount; exceptions.
(a) There is hereby imposed and levied by the municipality, upon each and every
..... h .... consumer of a utility service, a tax in the following amounts:
(2) Residential local exchange te/eFhone service: On the first $! 5.00 ef net
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AN ORDINANCE: AMENDING CHAPTER 17, ARTICLE III, TAX ON PURCHASES OF
UTILITY SERVICES, OF THE TOWN CODE TO INCORPORATE
CHANGES TO THE METHOD OF CALCULATING THE TAX ON
ELECTRIC AND NATURAL GAS SERVICES REQUIRED BY STATE
LAW AND TO MAKE OTHER CORRESPONDING CHANGES
(1) Residential.
(i)
Electric Service: Such tax shall be $1.12 plus the rate of $0.012047
per kilowatt hour (kWh) delivered monthly not to exceed $2.40 per
month.
(ii)
Natural Gas Service: Such tax shall be $1.12 plus the rate of
$0.07172 per CCF delivered monthly not to exceed $2.40 per
month; provided, however, for any group-metered multifamilv
dwelling, the rate will be $1.12 multiplied by the number of
individual dwelling units served by such group-meter or meters plus
the rate of $0.00013 per CCF delivered monthly not to exceed $2.40
per month multiplied by the number of individual dwelling units
served by such group meter or meters.
(iii)
Telephone Service: On the first $15.00 of net charge per residential
user per month, 16 percent.
(2) Commercial or Industrial.
(i)
Electric Services. $1.84 plus the rate of $0.010707 per kWh
delivered monthly not to exceed $48.00 per month. Industrial
consumers: $1.84 plus the rate of $0.010707 per kWh delivered
monthly not to exceed $48.00 per month.
(ii)
Natural Gas Services. $1.35 plus the rate of $0.05352 per CCF
delivered monthly not to exceed $48.00 per month.
(iii)
Telephone Service: On the first $300.00 of net charge per
commercial or industrial user per month, 16 percent.
(b)
The tax imposed and levied by this section on purchasers with respect to
telephone service shall apply to all charges made for local telephone
exchange service except as follows:
AN ORDINANCE:
-4-
AMENDING CHAPTER 17, ARTICLE III, TAX ON PURCHASES OF
UTILITY SERVICES, OF THE TOWN CODE TO INCORPORATE
CHANGES TO THE METHOD OF CALCULATING THE TAX ON
ELECTRIC AND NATURAL GAS SERVICES REQUIRED BY STATE
LAW AND TO MAKE OTHER CORRESPONDING CHANGES
(c)
(d)
Sec. 17-90.
(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 respect 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.
There shall be no tax computed en bills submitted for electric service for
heating water and space heating, where a separate meter is used solely for
water heating and space heating service, zr on bills submi~ed for
umv. etered electric service.
The United States of America, diplomatic personnel exempted by the laws
of the United States, the State of Virginia and political subdivisions, boards,
commissions and authorities thereof are hereby exempted from the payment
of the tax imposed and levied by this section with respect to the purcb, ase ~f
utility services used by such governmental agencies, cr~,~ ,,c q_~ o -~, ~ -~
tq. {h~-rl 'NTt, Ot~ tq 1 gl R I ~_~Q O~'~
Computation
(a)
In all cases where the seller collects the price for utility service is billed
in stated periods, the tax imposed and levied by this article shall be
computed on the amount of purchase or consumption, as the case may
be, 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.
AN ORDINANCE:
-5-
AMENDING CHAPTER 17, ARTICLE III, TAX ON PURCHASES OF
UTILITY SERVICES, OF THE TOWN CODE TO INCORPORATE
CHANGES TO THE METHOD OF CALCULATING THE TAX ON
ELECTRIC AND NATURAL GAS SERVICES REQUIRED BY STATE
LAW AND TO MAKE OTHER CORRESPONDING CHANGES
(b)
Utility bills shall be considered monthly bills, if submitted 12 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 such bill included in computing the tax
imposed by section 17-89 shall be the net charges referred to in such
section multiplied by the number of months for which bill is submitted.
Sec. 17-91. Duty of seller to collect and report.
It shall be the duty of every seller, in acting as the tax collection medium or agency for the
municipality, to collect from thev~-~-h .... consumer, for the use of the municipality, the
tax imposed and levied by this article at the time of collecting the purchase price charged
for the service. The taxes collected during each calendar month shall be reported by each
seller to the municipal treasurer Finance Director and, simultaneously, each seller shall
remit the amount of tax shown by the report to have been collected to the municipal
treasurer Finance Director on or before the last day of the first calendar month thereafter,
together with the name and address of anyv ..... ~ v..~.h .... consumer who has refused to pay his
tax. rr~,.~ ^r<_lO "/% § 4)
Sec. 17-92. Seller's records.
Every seller shall keep complete records showing all purchases of utility service in the
municipality, which records shall show the price charged against purchaser consumer with
respect to each purchase, the date thereof, the date of payment thereof and the amount of
tax imposed under this article. Such record shall 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 transcripts thereof
during such times as they may desire. ,~,.,~.~. ~"c .~ ~.~o '~,,. § 4)
Sec. 17-93. Duty of ~ finance director to collect tax and pay same to general
fund.
The munizipa! treas-~er Finance Director shall be charged with the power and duty of
collecting the taxes levied and imposed under this article and shall cause the same to be
paid into the general fund of the municipality. (Ord. ,,r~ .~-~ o_-~,~ . ~ § -,~
-6-
AN ORDINANCE:
AMENDING CHAPTER 17, ARTICLE III, TAX ON PURCHASES OF
UTILITY SERVICES, OF THE TOWN CODE TO INCORPORATE
CHANGES TO THE METHOD OF CALCULATING THE TAX ON
ELECTRIC AND NATURAL GAS SERVICES REQUIRED BY STATE
LAW AND TO MAKE OTHER CORRESPONDING CHANGES
Sec. 17-94. Penalty for failure to pay and for violations of article.
Any .....h ....
v ......... consumer failing, refusing or neglecting, after five days from receipt of
notice by the m~nicipa! treasure~ Finance Director that the tax is delinquent, to pay the tax
imposed or levied by this article, and any seller violating the provisions of this article, and
any officer, agent, or employee of any seller violating the provisions of this article, shall be
guilty of a misdemeanor and shall, upon conviction, be subject to a fine of not less than
$10.00 nor more than $300.00, or by imprisonment in jail for not more than three months,
or by both such fine and imprisonment. Each failure, refusal, neglect or violation and each
day's continuance thereof 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 article, rc~..~v.~, v."r ~-~. o_-~q,~ . ~ § 7)
SECTION II. This ordinance shall become effective on January 1, 2001.
PASSED this 17th day of October, 2000.
ATTEST:
B.J. We(~b, Mayor
Town of Leesburg
of Council
O:Utilitytax