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2005 SESSION

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SB 1335 Communications services; various revisions to taxation thereof.

Introduced by: Jay O'Brien | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Communications tax reform.  Completely revises the taxation of communications services as follows:

Applies a statewide communications sales and use tax to retail communication and video services on a competitively neutral basis. The communications sales and use tax rate will be 5% on the following:

Local Exchange                                Paging                                   

Inter-Exchange                                  Cable Television

 (Both Interstate and Intrastate)      Satellite Television

Wireless                                             Voice over the Internet (VoIP)

A $0.75 "911 Tax" will be applied to each local exchange line (landline) and the current $0.75 "911 Fee" will continue to be applied to each wireless number.

The state communications sales and use tax and state 911 fees and taxes replace the following currently billed taxes:

Local Consumer Utility Tax (LCUT)

Local Gross Receipts Tax (BPOL) - (Only the portion above 0.5% currently billed to customers, where applicable)

Local E-911

Virginia Relay Fee

Cable Franchise Fee

A statewide Rights-of-Way Use Fee will be applied to all cable TV service lines as is currently applied on all local exchange telephone lines. The rate of the fee will be the same as determined annually by the Virginia Department of Transportation in accordance with § 56-468.1 of the Virginia Code.

The sales and use tax, 911 tax and the cable rights-of-way fee assessed on consumers of video services from a single provider will be remitted to the Virginia Department of Taxation who will administer the distribution of the Communications Sales and Use Tax Trust Fund within 30 days of receipt of the collections for a given month. The rights-of-way use fee assessed on consumers of both cable video services and voice services from a single provider will be remitted in accordance with § 56-468.1 (I). 911 Fees will be remitted directly to the Wireless 911 Board for administration.

The redistribution of taxes and fees is intended to be revenue neutral to localities and the Wireless 911 Board and shall cover the current cost of the Virginia Relay Center.


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