[Adopted 6-10-2004]
Pursuant to § 58.1-3812 of the Code
of Virginia, this article shall provide for the taxing of telecommunications
services provided to consumers residing within the boundaries of Northumberland
County, Virginia, and excluding those consumers residing within the
Town of Kilmarnock.
As used in this article, the following terms
shall have the meanings indicated:
Shall have the same meaning ascribed to it in Subdivision
C 10 of § 58.1-3703 of the Code of Virginia, except that,
for purposes of this article, the word "entity" shall be substituted
for the word "corporation" whenever it is used in that section.
Any portion of a debt related to a sale of local telecommunications
services, the gross charges for which are not otherwise deductible
or excludable, that has become worthless or uncollectible, as determined
under applicable federal income tax standards. If the portion of the
debt deemed to be bad is subsequently paid, the service provider shall
report and pay the tax on that portion during the reporting period
in which the payment is made.
The owner or tenant of property used primarily for commercial
or industrial purposes who pays for the utility service for such property.
A person who, individually or through agents, employees,
officers, representatives, or permittees, makes a taxable purchase
of local telecommunications services.
Subject to the exclusions in this section, the amount charged
or paid for the taxable purchase of local telecommunications services.
However, "gross charges" shall not include the following:
Charges or amounts paid that vary based on the
distance and/or elapsed transmission time of the communication that
are separately stated on the consumer's bill or invoice.
Charges or amounts paid for customer equipment,
including such equipment that is leased or rented by the customer
from any source, if such charges or amounts paid are separately identifiable
from other amounts charged or paid for the provision of local telecommunications
services on the service provider's books and records.
Charges or amounts paid for administrative services,
including, without limitation, service connection and reconnection,
late payments, and roamer daily surcharges.
Charges or amounts paid for special features
that are not subject to taxation under § 4251 of the Internal
Revenue Code of 1986, as amended.
Charges or amounts paid that are the tax imposed
by § 4251 of the Internal Revenue Code of 1986, as amended,
or any other tax imposed by statute, ordinance or regulatory authority.
Bad debts.
Subject to the exclusions stated in this section, includes,
without limitation, the two-way local transmission of messages through
use of switched local telephone services; telegraph services; teletypewriter;
local cellular mobile radio telecommunications services; specialized
mobile radio; stationary two-way radio; or any other form of two-way
mobile and portable communications.
Subject to the exclusions stated in this section, includes
any service subject to federal taxation as local telephone service
as that term is defined in § 4252 of the Internal Revenue
Code of 1986, as amended, or any successor statute.
Any two-way mobile or portable local telecommunications service,
including cellular mobile radio communication service and specialized
mobile radio.
A person having a telephone number for mobile local telecommunications
service who has made a taxable purchase of such service or on whose
behalf another person has made a taxable purchase of such service.
Every person engaged in the business of selling mobile local
telecommunications services to consumers.
The owner or tenant of property used primarily for residential
purposes who pays for the utility service in or for such property,
including but not limited to apartment houses, trailer parks and other
multiple-family dwellings or accommodations. Residential consumer
shall not include any consumer of mobile local telecommunications
service.
The location of the telecommunications equipment from which
telecommunications are originated or at which the telecommunications
are received by a consumer. However, if the service address is not
a defined location, as in the case of mobile telephones, maritime
systems, air-to-ground systems and the like, "service address" shall
mean the location of the subscriber's primary use of the telecommunications
equipment within the licensed service area. A mobile service provider
may obtain a signed statement from a consumer indicating which county,
city or town within the licensed service area is the location of the
consumers primary use of the telecommunications equipment. A mobile
service provider shall be entitled to rely absolutely on a consumer's
signed statement and shall remit the taxes collected to the county,
city or town identified by the consumer. In the absence of a signed
statement by a consumer, a mobile service provider shall identify
the county, city or town of the consumer's primary use and shall remit
the tax to such county, city or town based on any other reasonable
method, including, without limitation, the consumer's billing address,
service address or telephone number within the licensed service area.
Every person engaged in the business of selling local telecommunications
services to consumers.
The acquisition of telecommunications services for consumption
or use. However, "taxable purchase" does not include the provision
of telecommunications among members of an affiliated group of entities
by a member of the group for their own exclusive use and consumption;
and the purchase of telecommunications for resale in the subsequent
provision of the telecommunications, including, without limitation,
carrier access charges, right-of-access charges, and charges for use
of intercompany facilities; however, the acquisition of telecommunications
by a provider of enhanced services is not the purchase of telecommunications
for resale, even when the cost of the telecommunications is separately
stated to the purchaser of the enhanced services, as long as the primary
object of the purchase of the telecommunications by the provider is
for the provision of enhanced services and not telecommunications.
A person may make tax-free purchases of telecommunications for resale
if the person provides to the service provider a sworn affidavit indicating
that the person's purchases are nontaxable sales for resale.
There is hereby imposed and levied by Northumberland
County, Virginia, upon each consumer of local telecommunications service,
other than mobile local telecommunications service, a tax in the amount
of 20% per month of the charge made by the provider against the consumer
with respect to each local telecommunications service, provided that
such tax shall not be applicable to any charge in excess of $15 per
month for residential, commercial and industrial consumers. Each bill
generated to the consumer shall result in one tax regardless of the
number of lines included in said bill.
The United States of America, the Commonwealth
of Virginia and political subdivisions, boards, commissions and authorities
thereof and any public safety agency as defined in § 58.1-3813.1
of the Code of Virginia are hereby exempt from the payment of tax
imposed and levied by this article.
A.
A service provider of local telecommunications services
shall collect the tax from the consumer by adding the tax to the monthly
gross charge for services. The tax shall, when collected, be stated
as a distinct item separate and apart from the monthly gross charge.
Until the consumer pays the tax to the service provider, the tax shall
constitute a debt of the consumer to Northumberland County. If any
consumer refuses to pay the tax, the service provider shall notify
Northumberland County. After the consumer pays the tax to the service
provider, the taxes collected shall be deemed to be held in trust
by the service provider until remitted to Northumberland County.
B.
A service provider shall remit monthly to the Treasurer
of Northumberland County the amount of tax billed during the preceding
month to consumers with a service address in Northumberland County.
Any consumer failing, refusing or neglecting
to pay the tax imposed and levied by this article and any provider
violating the provisions of the ordinance, and any officer, agent
or employee of any provider violating the provisions hereof, shall
be guilty of a Class 4 misdemeanor. Each failure, refusal, neglect
or violation and each day's continuance shall constitute a separate
offense.
This article was adopted on June 10, 2004, and
shall not become effective until 120 days subsequent to written notice
by certified mail from Northumberland County being received by the
registered agent of the service provider that such tax has been imposed.
