RD355 - Annual Report on State and Local Communication Service Taxes and Fees


Executive Summary:
Chapter 780 of the 2006 Acts of Assembly (HB 568) requests that the Auditor of Public Accounts determine the amount of tax and fee revenues received by local governments from certain communication services for the fiscal year ending June 30, 2006. All counties, cities, and towns were required to report the amounts collected from service providers for the gross receipts tax in excess of 0.5 percent, local consumer utility taxes, video program excise taxes, cable franchise fees, and 911 taxes as certified by an independent certified public accountant. The certified amounts will determine each locality’s percentage share of future distributions of the Telecommunications Sales and Use Tax by the Department of Taxation.

This report includes communication tax and fee revenues that the local governments collect under the following statutory authority:

• local consumer utility tax on consumers of local exchange and wireless services (§ 58.1-3812);
• the gross receipts tax in excess of 0.5 percent (§ 58.1-3731);
• local E-911 taxes (§ 58.1-3813.1);
• cable television system franchise fee (§ 15.2-2108);
• video programming excise tax (§ 58.1-3818.4); and
• local consumer utility tax on consumers of cable services (local general charters).