Per the 2006 House Bill 568, Acts of Assembly, Chapter 780, effective January 1, 2007 the Commonwealth of Virginia repealed many local taxes and fees, including cable franchise fees, and replaced with a new state communications sales and use tax (“communications sales tax”) and a new state E-911 tax (“landline E-911 tax”). Revenues from the communications sales tax and landline E-911 taxes are collected and remitted monthly by communications services providers to the Virginia Department of Taxation and distributed on a monthly basis to Virginia localities on a predetermined share-basis.
The Communications Sales Tax is imposed by service providers at the rate of 5% of the sales prices of the following services:
- Cable television
- Inter-Exchange (both interstate and intrastate)
- Local Exchange
- Satellite television
- Voice over the Internet (VoIP)
A $0.75 "911 Tax" is applied to each local exchange line (landline) and the current $0.75 "911 Fee" has continued to be applied to each wireless number. The tax appears as a line item on customers’ bills.
For more information, visit Virginia’s Legislation Information System.
Bank Franchise Tax
Pursuant to the provisions of chapter 12 of Title 58.1 of the Code of Virginia, there is hereby imposed upon each bank located within the boundaries of this city a tax on net capital equaling 80 percent of the state rate of franchise tax set forth in Code of Virginia, Sections 58.1-1204 and 58.1-1204.1.
If any bank located within the boundaries of this city also has offices that are located outside the corporate limits of the city, the tax shall be apportioned as provided by Code of Virginia, Section 58.1-1211.
A tax is imposed on consumers of telephone, electric, and gas utility services. Taxes are collected and remitted by the last day of the month following the month of collection (electric and gas service) or billing (telephone service).