Sec. 40-116. - Definitions.

The following words and phrases, when used in this article, shall have the following respective meanings, except where the context clearly indicates otherwise:

All other classes of consumers means a consumer of natural gas or electric utility service provided to property used primarily for purposes other than commercial, industrial or residential as classified by the utility service provider.

Consumer means every person who, individually or through agents, employees, officers, representatives or permittees, makes a taxable purchase of electricity or natural gas services.

CCF means a volume of gas at standard pressure and temperature in units of one hundred (100) cubic feet.

Commercial consumer means a consumer of natural gas or electric utility service provided to property used primarily for commercial purposes as classified by the utility service provider.

Electric utility means a public utility authorized to furnish electric service to consumers in the Commonwealth of Virginia.

Gas utility means a public utility authorized to furnish natural gas service to consumers in the Commonwealth of Virginia.

Industrial consumer means a consumer of natural gas or electric utility service provided to property used primarily for industrial purposes as classified by the utility service provider.

kWh (kilowatt hours) means one thousand (1,000) watts of electricity delivered in a one-hour period by an electric service provider to a consumer, except that in the case of eligible customer-generators (sometimes called cogenerators) as defined in Section 56-594 of the state code, it means the kilowatt hours supplied from the electric grid to such customer-generators, minus the kilowatt hours generated and fed back to the electric grid by such customer-generators.

Person means an individual, partnership or limited liability partnership, company or limited liability company, corporation, or any other entity.

Pipeline distribution company means a person, other than a pipeline transmission company which transmits, by means of a pipeline, natural gas, manufactured gas or crude petroleum and the products or byproducts thereof to a consumer for purposes of furnishing heat, light or power.

Residential consumer means a consumer of natural gas or electric utility service provided to property used primarily for residential purposes as classified by the utility service provider.

Service provider means every person who delivers utility service to a consumer.

Used primarily relates to the larger portion of the use for which electric or natural gas utility service is furnished.

Utility service means the provision of electricity or natural gas for consumption by consumers.

(Ord. No. 5532-00, § 1)

Sec. 40-117. - Electric consumer utility tax levied; amount.

In accordance with Section 58.1-3814 of the state code, effective January 1, 2001, there is hereby imposed and levied a monthly tax, on a "per meter" basis, on each purchase of electricity delivered to consumers by a service provider in the following classes, as defined by the service provider, as follows:

(1)

Residential consumers. Such tax shall be one dollar and fifty-four cents ($1.54), plus the rate of $0.016398 per kWh on each kWh delivered monthly to residential consumers by a service provider, however the total tax shall not exceed three dollars and eight cents ($3.08) per month.

(2)

Commercial consumers. Such tax shall be two dollars and twenty-nine cents ($2.29), plus the rate of $0.013859 per kWh on the first two thousand seven hundred twenty-one (2,721) kWhs, plus the rate of $0.003265 per kWh on all remaining kWhs delivered monthly to commercial consumers, however the total tax shall not exceed eighty dollars ($80.00) per month.

(3)

Industrial consumers. Such tax shall be two dollars and twenty-nine cents ($2.29), plus the rate of $0.015455 per kWh on the first two thousand four hundred forty (2,440) kWhs, plus the rate of $0.003482 per kWh on all remaining kWhs delivered monthly to industrial consumers, however the total tax shall not exceed $80.00 per month.

(4)

All other classes of non-residential consumers. Such tax shall be two dollars and twenty-nine cents ($2.29), plus the rate of $0.015455 per kWh on the first two thousand four hundred forty (2,440) kWhs, plus the rate of $0.003482 per kWh on all remaining kWhs delivered monthly to all other classes of non-residential consumers, however the total tax shall not exceed eighty dollar ($80.00) per month.

(Ord. No. 5532-00, § 1)

Sec. 40-118. - Natural gas consumer utility tax levied; amount.

In accordance with Section 58.1-3814 of the state code, effective January 1, 2001, there is hereby imposed and levied a monthly tax, on a "per meter" basis, on each purchase of natural gas delivered to consumers by pipeline distribution companies and gas utilities, classified by "class of consumers" as such term is defined in § 58.1-3814(J) of the state code, as follows:

(1)

Residential consumers. Such tax shall be one dollar and fifty-one cents ($1.51) per month for gas utility service.

(2)

Commercial consumers. Such tax shall be one dollar twenty-nine cents ($1.29), plus the rate of $0.067602 per CCF on the first 128.91 CCFs, plus the rate of $0.032576 per CCF on all remaining CCFs delivered monthly to commercial consumers, however the total tax shall not exceed fifty-five dollars ($55.00) per month.

(3)

Industrial consumers. Such tax shall be one dollar and twenty-nine cents ($1.29), plus the rate of $0.067602 per CCF on the first 128.91 CCFs, plus the rate of $0.032576 per CCF on all remaining CCFs delivered monthly to industrial consumers, however the total tax shall not exceed fifty-five dollars ($55.00) per month.

(4)

All other classes of non-residential consumers. Such tax shall be one dollar and twenty-nine cents ($1.29), plus the rate of $0.067602 per CCF on the first 128.91 CCFs, plus the rate of $0.032576 per CCF on all remaining CCFs delivered monthly to all other classes of non-residential consumers, however the total tax shall not exceed fifty-five dollars ($55.00) per month.

(Ord. No. 5532-00, § 1)

Sec. 40-119. - Exemptions.

(a)

The United States of America, the Commonwealth of Virginia and the political subdivisions, boards, commissions and regional authorities thereof are hereby exempt from the payment of the tax imposed and levied by this article with respect to the purchase of utility services used by such governmental agencies, except that this section shall not apply to local authorities which shall be subject to the tax imposed by this article for utility service to occupants and lessees of premises owned or managed by the authorities.

(b)

There shall be no tax computed on bills submitted for electric service for heating water where a separate meter is used solely for water heating service.

(Ord. No. 5532-00, § 1)

Sec. 40-120. - Duty of service provider to bill, collect and remit tax.

(a)

The service provider shall (i) bill the consumer utility tax to all consumers who are subject to the tax and to whom it delivers utility services, and (ii) report and remit the same to the commissioner of the revenue on or before the last day of the succeeding month of collection. Until the consumer pays the tax to such service provider, the tax shall constitute a debt of the consumer to the locality. Upon payment by the consumer to the service provider, the tax shall constitute a debt of the service provider to the locality, and the service provider shall hold such receipts in trust as a fiduciary for and on behalf of the city.

(b)

If any consumer receives and pays for utility services but refuses to pay the consumer utility tax stated on the bill, the service provider shall notify the commissioner of the revenue in writing of the name and address of each such consumer and the amount of delinquent taxes owed by that consumer within forty-five (45) days after the failure of the consumer to pay the tax. It shall be the duty of the commissioner of the revenue to assess taxes reported by the service provider as unpaid under this article against the consumer, together with a penalty of five (5) percent of the delinquent tax owed, with a minimum penalty of one dollar ($1.00). If not paid as assessed, the taxes and penalties shall be turned over to the city treasurer, who shall collect the delinquent taxes and penalties in the same manner as other delinquent taxes and penalties are collected, and shall cause the same to be paid into the general fund of the city.

(c)

If any consumer fails to pay the entire bill issued by a service provider, including the consumer utility tax, the service provider shall follow its normal collection procedures with respect to the charge for utility service and the tax, and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for the utility service and the tax and (ii) report and remit the tax portion to the commissioner of the revenue. After the consumer pays the tax to the service provider, the taxes shall be deemed to be held in trust by such service provider until reported and remitted to the commissioner of the revenue. Delinquent taxes determined uncollectible by the service provider shall be reported, assessed and collection attempted as provided in subsection (b) of this section.

(d)

If any person whose duty it is to do so shall fail or refuse to remit to the city the tax required to be collected under this article within the time and in the amount specified in this article, there shall be added to such tax a penalty in the amount of ten (10) percent, with a minimum penalty of two dollars ($2.00). In addition, interest at the rate of ten (10) percent per annum shall be computed and collected upon the taxes and penalty beginning thirty (30) days from the date such taxes were due and payable.

(Ord. No. 5532-00, § 1)

Sec. 40-121. - Service provider records.

Each and every service provider shall keep complete and accurate, service and accounting records using generally accepted accounting principles and practices, which records shall indicate the consumption utilized by each consumer, the dates of such consumption, the date of billing and payment for utility services provided, and the amount of all billings and payments of the consumer utility taxes imposed pursuant to this article. Such records shall be kept open for inspection and access provided to duly authorized agents of the city during the city's normal business hours for a period of three (3) years from the date such record was created; and such agents of the city shall have the right, power and authority to make such transcripts thereof during such times as the records are inspected.

(Ord. No. 5532-00, § 1)

Sec. 40-122. - Computation tax for bills not on monthly basis.

Bills shall be considered as monthly bills for the purposes of this article if submitted twelve (12) times per year of approximately one (1) month each. The tax for a bimonthly bill (approximately sixty (60) days) shall be determined as follows: (i) the kWh or CCF reflected on the bill shall be divided by two (2); (ii) a monthly tax will be calculated using the rates set forth in this article; (iii) the tax determined by step (ii) shall be multiplied by two (2) which shall equal the applicable tax; however, (iv) the tax calculated in step (iii) may not exceed twice the monthly "not to exceed" amount.

(Ord. No. 5532-00, § 1)

Sec. 40-123. - Rebate of consumer utility taxes in enterprise zones.

(a)

Any qualified business firm located in a designated enterprise zone within the city may be eligible for a rebate of its consumer utility tax it has paid in accordance with the provisions of this article. Rebate to a business entity of consumer utility taxes shall begin as of the date of certification by the department of development of that business as a qualified business firm within a designated enterprise zone in the city. The tax shall be rebated according to the following schedule:

(b)

Any business entity located in a designated enterprise zone may be certified as a qualified business entity for purposes of this section if it meets specific guidelines for eligibility in accordance with the application submitted to and approved by the Governor of the Commonwealth of Virginia for designation of the specific Virginia Enterprise Zone within which the business firm is located.

(Ord. No. 5532-00, § 1; Ord. No. 6598-09)

Sec. 40-124. - General duty of treasurer to collect.

The city treasurer shall be charged with the authority and duty of collecting consumer utility taxes and penalties levied and imposed by this article, and upon collection shall cause the same to be paid into the general fund of the city.

(Ord. No. 5532-00, § 1)

Sec. 40-125. - Penalties.

(a)

Any person who willfully fails to bill, collect, remit or truthfully account for and pay over the city treasurer the consumer utility tax as provided in this article, or who willfully attempts in any manner to evade or defeat any such tax, or the billing, collection or remittance thereof, shall, in addition to any other penalty provided by law, be guilty of a Class 1 misdemeanor.

(b)

Any person who willfully fails to bill, collect, remit or truthfully account for and pay over the city treasurer the consumer utility tax as provided in this article, or who willfully attempts in any manner to evade or defeat any such tax, or the billing, collection or remittance thereof, shall, in addition to all other penalty provided by law, be liable to the city for a penalty in an amount equal to such tax.

(c)

The term "person" as used in this section specifically includes any officer, agent and employee of any person as defined in this article who is under a duty to perform on behalf of that person the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

(d)

A criminal conviction pursuant to this section shall not relieve any such person from the payment, collection and remittance of the tax as otherwise provided in this article.

(Ord. No. 5532-00, § 1)

Secs. 40-126—40-134. - Reserved.