20040210 2004-1ORDINANCE NO. 2004-1
AN ORDINANCE AMENDING ARTICLE V, CHAPTER 90, SECTIONS 90-231
THROUGH 90-232 OF THE CODE OF THE CITY OF FAIRFAX, VIRGINIA,
PERTAINING TO TAX ON UTILITY SERVICES.
BE IT ORDAINED by the Council for the City of Fairfax, Virginia, that Article V,
Sections 90-231 through 90-232 of the Code of the City of Fairfax, Virginia is amended to
read in its entirety as follows:
ARTICLE V. TAX ON UTILITY SERVICES
Sec. 90-231. Definitions.
For the purposes of this article, the following words and phrases shall have the meanings
respectively ascribed to them by this section:
CCF means the volume of gas at standard pressure and temperature in units of 100 cubic feet.
Commercial or industrial user means the owner or tenant of property used for commercial or
industrial purposes.
Consumer means every person who, individually or through agents, employees, officers,
representatives or permitees, makes a taxable purchase of electricity or natural gas services in
the city.
Gas utility means a public utility authorized to furnish natural gas service in Virginia.
Kilowatt hours (kWh) means 1000 watts of electricity delivered in a one-hour period by an
electric provider to an actual consumer, except that in the case of eligible customer-
generators (sometimes called cogenerators) as defined in Virginia Code §56-594, it means
kWh supplied from the electric grid to such customer-generators, minus the kWh generated
and fed back to the electric grid by such customer-generators.
Local telephone service means any telephone service provided to residential and commercial
or industrial consumers.
Mobile local telecommunication service means any two-way mobile or portable local
telecommunication service. Including cellular mobile radio telecommunication service and
specialized mobile radio.
Person means individuals, firms, partnerships, associations, corporations, including
municipal corporations, and combinations of individuals of whatever form and character.
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 purchaser for purposes of furnishing heat or light.
Purchaser means every person who purchases a utility service.
Residential user means the owner or tenant of private residential property, of an apartment or
multiunit project
Seller means every person who sells or furnishes a utility service.
Service Provider means every person who sells or provides a utility service.
Utility service means local telephone service, mobile local telecommunication service,
electric service, water service and gas service, including bottled or liquid gas, whether
generally termed a utility service or not, furnished in the City.
Sec. 90-232. Levy and amount of tax.
(a) There is hereby imposed and levied by the city, upon each purchaser of local telephone
utility service, a tax on the amount charged by the seller against the purchaser, exclusive
of any federal tax thereon. The tax rate shall be 15 percent of the charge for each
residential utility service and 15 percent of the charge for each commercial or industrial
utility service. In every case, the tax shall be collected by the seller from the purchaser
and shall be paid by the purchaser to the seller for the use of the city at the time the
purchase price or such charge shall become due and payable under the agreement
between the purchaser and seller.
(b) In case any monthly bill submitted by a seller for residential local telephone utility
service shall exceed $15.00 for a residential user, there shall be no tax computed on so
much of such bill as shall exceed $15.00. In case any monthly bill submitted by any
seller for a commercial or industrial user of local telephone utility service shall exceed
$500.00, there shall be no tax computed on so much of such bill as shall exceed $500.00.
(c) In case a bill is submitted by the seller for more than one month's local telephone utility
service, then the amount of such bill excluded in computing the tax shall be the monthly
exclusion allowed in this article, multiplied by the number of months for which such bill
is submitted.
(d) There is hereby imposed and levied by the city a monthly tax on each purchase of
electricity delivered to consumers by a service provider, classified as determined by such
provider, as follows:
(1) Residential consumers: Such tax shall be $1.05 plus the rate of $0.01136 on each
kWh delivered monthly to residential consumers by a service provider not to exceed
$2.25 monthly. In the case of any multiple-family dwellings served by master or
group meter(s), such tax shall be $1.05 plus the rate of $0.01136 on each kWh
delivered monthly to residential consumers by a service provider not to exceed $2.25
monthly.
(2) Commercial and industrial consumers: Such tax shall be $1.72 plus the rate of
$0.010112 on each kWh delivered monthly to commercial and industrial consumers,
not to exceed $75.00 monthly.
(e) There is hereby imposed and levied a monthly tax on each purchase of natural gas
delivered to consumers by a service provider, classified as determined by such provider
or pipeline distribution company, as follows:
(1) Residential consumers: Such tax shall be $1.05 plus the rate of $0.05709 on each
CCF (or equivalent measure) delivered monthly to residential consumers by a service
provider or pipeline distribution company, not to exceed $2.25 monthly. In the case of
any multiple-family dwellings served by master or group meter(s), such tax shall be
$1.05 plus the rate of $0.01339 on each CCF (or equivalent measure) delivered
monthly to residential consumers by a service provider not to exceed $2.25 monthly.
(2) Commercial and industrial consumers: Such tax shall be $1.27 plus the rate of
$0.05295 on each CCF (or equivalent measure) delivered monthly to commercial and
industrial consumers by a service provider or pipeline distribution company, not to
exceed $75.00 monthly.
(f) There is hereby imposed and levied by the city, upon each purchaser of mobile local
telecommunication service with a consumer service address located in the city, a tax in
the amount often (10) percent of the monthly gross charge to a consumer of mobile local
telecommunication service, provided that such tax shall not be applicable to any amount
so charged in excess of thirty ($30.00) per month for each mobile telecommunications
service billed to a mobile service consumer. The tax shall be collected by the seller from
the purchaser and shall be paid by the purchaser to the seller for the use of the city at the
time the purchase price or such charge shall become due and payable under the
agreement between the purchaser and the seller.
2004-
This ordinance shall become effective February 1, 2004.
INTRODUCED: January 13, 2004
PUBLIC HEARING: February 10, 2004
ADOPTED: February 10, 2004
Vote:
Councilwoman Cross
Councilman Greenfield
Councilwoman Lyon
Councilman Rasmussen
Councilman Silverthorne
Councilmember Winter
Aye
Aye
Aye
Aye
Aye
Aye
Date
ATTEST:
City Clerk