Sec. 40-98. - Levied; amount.

(a)

There is hereby imposed and levied by the city, upon each and every purchaser of local residential exchange telephone service inside the corporate limits of the city, a tax in the amount of twenty-two (22) percent of the charge for local residential exchange telephone service made by the seller thereof against the purchaser; provided, however, that in case any monthly bill submitted by any seller for local residential exchange telephone service shall exceed thirteen dollars and twenty cents ($13.20), there shall be no tax computed on so much of the bill as shall exceed thirteen dollars and twenty cents ($13.20).

(b)

There is hereby imposed and levied by the city, upon each and every purchaser of local commercial or industrial exchange telephone service inside the corporate limits of the city, a tax in the amount of twenty (20) percent of the charge for local commercial or industrial exchange telephone service made by the seller thereof against the purchaser; provided, however, that in case any monthly bill submitted by any seller for local commercial or industrial exchange telephone service shall exceed three hundred dollars ($300.00), there shall be no tax computed on so much of the bill as shall exceed three hundred dollars ($300.00).

(c)

There is hereby imposed and levied by the city upon each and every consumer of mobile local telecommunication services a tax of ten (10) percent of the monthly gross charge to that consumer; provided, however, that the tax shall not be applicable to any amount so charged in excess of thirty dollars ($30.00) per month for each mobile service consumer.

(d)

As used in this article, unless the context clearly requires otherwise:

(1)

The term local residential exchange telephone service shall mean telephone service furnished the owner or tenant of private residential property or the tenant of an apartment who pays for telephone service to such property.

(2)

The term local commercial or industrial exchange telephone service shall mean telephone service furnished the owner or tenant of property used for commercial or industrial purposes, but shall not include telephone service to rented residential units as provided in subparagraph (1) above even though such may be commercial in nature.

(3)

The term gross charges shall mean the amount charged or paid for the taxable purchase of local telecommunication 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 telecommunication 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:

1.

The tax imposed by § 4251 of the Internal Revenue Code of 1986, as amended or

2.

Any other tax or surcharge imposed by statute, ordinance or regulatory authority.

f.

Bad debts.

(4)

The term local telecommunication service includes, without limitation, the two-way local transmission of messages through use of switched local telephone services; telegraph services; teletypewriter; local cellular mobile radio telecommunication services; specialized mobile radio; stationary two-way radio; or any other form of two-way mobile and portable communications.

(5)

The term consumer means a person who, individually or through agents, employees, officers, representatives, or permittees, makes a taxable purchase of local telecommunication services.

(6)

The term mobile local telecommunication service means any two-way mobile or portable local telecommunication service, including cellular mobile radio telecommunication service and specialized mobile radio.

(7)

The term mobile service consumer means a person having a telephone number for mobile local telecommunication service who has made a taxable purchase of such service or on whose behalf another person has made a taxable purchase of such service.

(Ord. No. 566; Ord. No. 770, § 1; Ord. No. 926, § 1; Ord. No. 1257, § 1; Ord. No. 1366, § 1; Code 1961, § 16-62; Ord. No. 3173-84, § 1; Ord. No. 4726-95, § 1; Ord. No. 5922-03, § 1)

State law reference— Authority for above tax, Code of Virginia, § 58.1-3812.

Sec. 40-98.1. - Emergency telephone system tax levied; amount.

(a)

In addition to the tax levied by section 40-98, there is hereby imposed and levied by the city, upon such purchaser of local telephone service inside the corporate limits of the city, a tax in the amount of two dollars and fifty-eight cents ($2.58) per line, per month, or part thereof. Amounts collected from the tax shall be used solely to pay for direct recurring and nonrecurring capital costs and operating expenses incurred by the city in designing, upgrading, leasing, purchasing, programming, installing, testing, administering, delivering, or maintaining all necessary data, hardware and software required to receive and process emergency telephone calls through the E-911 system, including salaries and fringe benefits of dispatchers, direct call-takers and supervisors of the E-911 system and costs incurred in training dispatchers, direct call-takers and supervisors in receiving and dispatching emergency telephone calls.

(b)

Each and every seller of local telephone service shall be allowed three (3) percent of the amount of tax due and accounted for in the form of a deduction in submitting the return and paying the amount due by it.

(Ord. No. 3457-86; Ord. No. 4476-93, § 1; Ord. No. 4727-95, § 1; Ord. No. 4774-95, § 1; Ord. No. 4916-96, § 1; Ord. No. 5021-97, § 1; Ord. No. 5136-98, § 1; Ord. No. 5488-00, § 1; Ord. No. 5923-03, § 1; Ord. No. 6127-05, § 1)

Sec. 40-99. - Applicability generally.

The tax imposed and levied under this article on purchasers with respect to local exchange telephone services shall apply to all charges made for local exchange telephone services, except local messages which are paid for by inserting coins in coin-operated telephones.

(Ord. No. 556; Ord. No. 770, §§ 2, 7; Ord. No. 926, §§ 2, 7; Ord. No. 1257, § 5; Ord. No. 1366, § 5; Code 1961, § 16-63)

Sec. 40-100. - Exemptions.

The United States of America, the State of Virginia and the political subdivisions, boards, commissions and authorities thereof are hereby exempt from the payment of the tax imposed and levied by this article with respect to the purchase of local exchange telephone service used by such governmental agencies.

(Ord. No. 566; Ord. No. 770, §§ 4, 5; Ord. No. 926, §§ 4, 5; Ord. No. 1257, § 4; Ord. No. 1366, § 4; Code 1961, § 16-64)

Sec. 40-101. - Duty of seller to collect and remit; seller's reports.

(a)

It shall be the duty of every seller of local exchange telephone service, in acting as the tax collecting medium or agency for the city, to collect from the purchaser, for the use of the city, the tax imposed and levied by this article at the time of collecting the purchase price charged for the service. The tax collected during such calendar month shall be reported and remitted by the seller to the commissioner of the revenue on or before the last day of the second calendar month thereafter. At the same time, the seller shall report the name and address of any purchaser who has refused to pay such tax. The required reports shall be in the form prescribed by the commissioner of the revenue.

(b)

All remittances received hereunder by the commissioner of the revenue shall be promptly turned over to the city treasurer.

(Ord. No. 556; Ord. No. 770, §§ 1, 2; Ord. No. 926, §§ 1, 2; Ord. No. 1257, §§ 1, 2; Ord. No. 1366, §§ 1, 2; Code 1961, § 16-62.1)

Sec. 40-102. - Seller's records.

Each and every seller of local exchange telephone service shall keep complete records showing all purchases of such service in the city, which records shall show the price charged against each purchaser with respect to each purchase, the date thereof, the date of payment thereof and the amount of tax imposed under this article. Such records shall be kept open for inspection by the duly authorized agents of the city at reasonable times, and the duly authorized agents of the city shall have the right, power and authority to make such transcripts thereof during such times as they may desire.

(Ord. No. 566; Ord. No. 770, § 3; Ord. No. 926, § 3; Ord. No. 1257, § 3; Ord. No. 1366, § 3; Code 1961, § 16-68)

Sec. 40-103. - Violation of article by seller.

Any seller violating the provisions of this article, and any officer, agent or employee of any seller violating the provisions of this article, shall be deemed guilty of a Class 4 misdemeanor. Each failure, refusal, neglect or violation and each day's continuance thereof shall constitute a separate offense.

(Ord. No. 566; Ord. No. 770, § 8; Ord. No. 926, § 8; Ord. No. 1257, § 6; Ord. No. 1366, § 6; Code 1961, § 16-69)

Sec. 40-104. - General duty of treasurer to collect.

The city treasurer shall be charged with the power and the duty of collecting the tax levied and imposed under this article and shall cause the same to be paid into the general fund of the city.

(Ord. No. 566; Ord. No. 770, § 10; Ord. No. 926, § 10; Ord. No. 1257, § 8; Ord. No. 1366, § 8; Code 1961, § 16-65)

Sec. 40-105. - Assessment and collection of delinquencies.

It shall be the duty of the commissioner of the revenue to assess taxes reported by the seller to be unpaid under this article against the purchaser, together with a penalty of five (5) percent, but in no case less than one dollar ($1.00). These assessments shall be turned over to the city treasurer, who shall collect the taxes and penalty in the same manner as other delinquent taxes are collected.

(Ord. No. 566; Ord. No. 770, § 9; Ord. No. 926, § 9; Ord. No. 1257, § 7; Ord. No. 1366, § 7; Code 1961, § 16-67)

Sec. 40-106. - Reserved.

Editor's note—

Ord. No. 6599-09, adopted May 26, 2009, repealed § 40-106, which pertained to rebate of local exchange telephone service tax and derived from Ord. Nos. 3140-84 and 4756-95. See also the Code Comparative Table.

Secs. 40-107—40-115. - Reserved.