§ 58.1-3818.3. (Repealed effective January 1, 2007 - see Editor's notes) Imposition of excise tax on gross receip...
A. The governing body of any county, city or town may levy a video programming excise tax on any person that sells video programming to end-user subscribers located within the Commonwealth by any means of transmission other than wireless or direct-to-home satellite transmission, or provides such end-user subscribers with access to video programming by any means of transmission, other than wireless or direct-to-home satellite transmission, and that is not otherwise subject to local fees or taxes (other than generally applicable taxes) on the gross receipts received from the provision of cable service or video programming services to customers in such local jurisdiction. Such excise tax shall be imposed on persons engaging in any commercial activity in the Commonwealth, employing capital in the Commonwealth, owning, leasing or utilizing property in the Commonwealth, maintaining an office in the Commonwealth, or having employees in the Commonwealth for all or any part of any calendar year. The excise tax imposed by each local jurisdiction may be imposed only on the gross receipts of such persons from sales of video programming or sales of access to video programming other than wireless or direct-to-home satellite transmission, directly to end-user subscribers that are located within the particular local jurisdiction. The amount of excise tax that each local jurisdiction is authorized to collect from any person subject to tax pursuant to this section shall be determined by (i) multiplying the franchise fee rate lawfully imposed by the local cable ordinance of each such local jurisdiction or, if no local cable ordinance exists, in the written franchise agreement between the local cable operator and such local jurisdiction, times (ii) such person's gross receipts from sales of video programming and sales of access to video programming, by any means of transmission, other than wireless or direct-to-home satellite transmission, directly to end-user subscribers that are located within such local jurisdiction. The rate imposed pursuant to this excise tax shall in no event exceed five percent. Any person subject to tax pursuant to this section may elect at any time to pass through to end-user subscribers, as a separate, itemized line charge on the end-user subscriber's bill, the excise tax imposed hereunder. If this tax is passed through to and collected from end-user subscribers, the taxes collected shall be deemed to be held in trust for each such local jurisdiction until remitted.
B. The governing body of any county, city or town desiring to impose an excise tax may do so by the adoption of an ordinance stating its purpose and referring to this section, and providing that such ordinance shall be effective on the first day of a month at least ninety days after its adoption.
C. If no cable operator provides cable service within the limits of a particular local jurisdiction, the excise tax to be collected from persons shall be an amount not to exceed five percent multiplied by each such person's gross receipts from sales of video programming and sales of access to video programming, by any means of transmission, other than wireless or direct-to-home satellite transmission, directly to end-user subscribers located within such local jurisdiction. In the event that a cable operator shall thereafter provide cable service within the limits of such local jurisdiction, the tax rate set pursuant to this section shall be adjusted to not exceed the franchise fee rate lawfully imposed by the local cable ordinance of such local jurisdiction or, if no local cable ordinance exists, in the written franchise agreement between the local cable operator and such local jurisdiction.
D. Any person subject to the excise tax imposed hereunder shall be entitled to a credit against such taxes equal in amount to any communications industry or similar taxes imposed on gross receipts from interstate video programming activity (other than sales or use tax or a generally applicable corporate income tax) that such person has paid to another state or political subdivision thereof under a lawful requirement of such state or political subdivision on sales by such person of the same video programming or sales of access to such video programming to end-user subscribers located within the particular Virginia local jurisdiction. The amount of the credit shall not exceed the tax imposed by this section on such sales of video programming or sales of access to video programming for which the tax is claimed. If the excise tax imposed hereunder is passed through to and collected from end-user subscribers, any tax credit permitted hereunder shall also be passed through to and credited against taxes collected from end-user subscribers.
E. The tax shall be paid to the taxing locality by each person quarterly on or before March 31, June 30, September 30, and December 31 and shall be calculated based on the gross receipts of each person during the three months prior to the month of payment. Any payment of tax shall be considered as timely made if the payment which has been received by the local jurisdiction is postmarked by the United States Postal Service on or prior to the final day on which payment is to be received.
F. Any county tax imposed hereunder shall not apply within the limits of any incorporated town located within such county which town imposes a town tax authorized by this section.
G. All persons subject to this tax shall register with the State Corporation Commission pursuant to procedures established by the Commission.
H. Nothing in this article shall be construed to authorize the governing body of any county, city or town to levy an excise tax on industrial satellite services of any kind.
(1995, c. 751.)
Sections: Previous 58.1-3816.1 58.1-3816.2 58.1-3817 58.1-3818 58.1-3818.01 58.1-3818.1 58.1-3818.2 58.1-3818.3 58.1-3818.4 58.1-3818.5 58.1-3818.6 58.1-3818.7 58.1-3819 58.1-3820 58.1-3821 NextLast modified: April 3, 2009