[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:
AFFILIATED GROUP
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.
BAD DEBT
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.
COMMERCIAL OR INDUSTRIAL CONSUMER
The owner or tenant of property used primarily for commercial or industrial purposes who pays for the utility service for such property.
CONSUMER
A person who, individually or through agents, employees, officers, representatives, or permittees, makes a taxable purchase of local telecommunications services.
GROSS CHARGES
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:
A. 
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.
B. 
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.
C. 
Charges or amounts paid for administrative services, including, without limitation, service connection and reconnection, late payments, and roamer daily surcharges.
D. 
Charges or amounts paid for special features that are not subject to taxation under § 4251 of the Internal Revenue Code of 1986, as amended.
E. 
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.
F. 
Bad debts.
LOCAL COMMUNICATIONS SERVICE
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.
LOCAL TELEPHONE SERVICE
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.
MOBILE LOCAL TELECOMMUNICATIONS SERVICE
Any two-way mobile or portable local telecommunications service, including cellular mobile radio communication service and specialized mobile radio.
MOBILE SERVICE CONSUMER
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.
MOBILE SERVICE PROVIDER
Every person engaged in the business of selling mobile local telecommunications services to consumers.
RESIDENTIAL CONSUMER
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.
SERVICE ADDRESS
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.
SERVICE PROVIDER
Every person engaged in the business of selling local telecommunications services to consumers.
TAXABLE PURCHASE
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.