HB 568 Communications tax reform; revises services, report.
Samuel A. Nixon, Jr. | all patrons    ...    notes
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Summary as introduced:
Communications tax reform.  Completely revises the taxation of communications services as follows. Applies a statewide communications sales and use tax to retail communication and video services on a competitively neutral basis. The communications sales and use tax rate will be 5% on the following:

Local Exchange


Inter-Exchange (Both interstate and intrastate)

Cable Television

Satellite Television


Voice over the Internet (VoIP)

A $0.75 "911 Tax" will be applied to each local exchange line (landline) and the current $0.75 "911 Fee" will continue to be applied to each wireless number.

The state communications sales and use tax, and state 911 fees and taxes replace the following currently billed taxes and fees:

Local Consumer Utility Tax (LCUT)

Local Gross Receipts Tax (BPOL) - (Only the portion above 0.5% currently billed to customers, where applicable)

Local E-911

Virginia Relay Fee

Cable Franchise Fee

 A statewide rights-of-way use fee will be applied to all cable TV service lines as is currently applied on all local exchange telephone lines. The rate of the fee will be the same as determined annually by the Virginia Department of Transportation in accordance with 56-468.1 of the Virginia Code.

 The sales and use tax, 911 tax, and the cable rights-of-way fee assessed on consumers of video services from a single provider will be remitted to the Virginia Department of Taxation, which will administer the distribution of the Communications Sales and Use Tax Trust Fund within 30 days of receipt of the collections for a given month. The rights-of-way use fee assessed on consumers of both cable video services and voice services from a single provider will be remitted in accordance with subsection I of 56-468.1. The 911 fees will be remitted directly to the Wireless 911 Board for administration.

The redistribution of taxes and fees is intended to be revenue neutral to localities and the Wireless 911 Board and shall cover the current cost of the Virginia Relay Center.

 The provisions of the act will be effective on January 1, 2007.

Full text:
01/10/06  House: Prefiled and ordered printed; offered 01/11/06 061601432  pdf | impact statement
01/25/06  House: Printed as engrossed 061601432-E  pdf | impact statements
02/28/06  Senate: Committee substitute printed 067378432-S1  pdf
03/07/06  House: Bill text as passed House and Senate (HB568ER)  pdf | impact statement
04/17/06  Governor: Acts of Assembly Chapter text (CHAP0780)  pdf

House amendments
House amendments rejected
Senate amendments
Senate amendments engrossed

01/10/06  House: Prefiled and ordered printed; offered 01/11/06 061601432
01/10/06  House: Referred to Committee on Finance
01/23/06  House: Reported from Finance with amendments (15-Y 7-N)
01/24/06  House: Read first time
01/25/06  House: Read second time
01/25/06  House: Committee amendments agreed to
01/25/06  House: Amendment by Delegate Nixon agreed to
01/25/06  House: Amendments by Delegate Marshall, R.G. rejected
01/25/06  House: Amendment by Delegate Orrock agreed to
01/25/06  House: Engrossed by House as amended HB568E
01/25/06  House: Printed as engrossed 061601432-E
01/26/06  House: Read third time and passed House (65-Y 33-N 1-A)
01/26/06  House: VOTE: PASSAGE (65-Y 33-N 1-A)
01/26/06  House: Reconsideration of passage agreed to by House
01/26/06  House: Passed House (62-Y 35-N 2-A)
01/26/06  House: VOTE: PASSAGE #2 (62-Y 35-N 2-A)
01/26/06  House: Communicated to Senate
01/27/06  Senate: Constitutional reading dispensed
01/27/06  Senate: Referred to Committee on Finance
02/28/06  Senate: Reported from Finance with substitute (12-Y 2-N 1-A)
02/28/06  Senate: Committee substitute printed 067378432-S1
03/01/06  Senate: Constitutional reading dispensed (39-Y 0-N)
03/01/06  Senate: VOTE: (39-Y 0-N)
03/01/06  Senate: Motion to reconsider pass by for the day agreed to (40-Y 0-N)
03/01/06  Senate: VOTE: (40-Y 0-N)
03/01/06  Senate: Passed by temporarily
03/01/06  Senate: Read third time
03/01/06  Senate: Reading of substitute waived
03/01/06  Senate: Committee substitute agreed to 067378432-S1
03/01/06  Senate: Reading of amendment waived
03/01/06  Senate: Amendment by Senator Wampler agreed to
03/01/06  Senate: Engrossed by Senate - committee substitute with amendment HB568S1
03/01/06  Senate: Passed Senate with substitute with amendment (25-Y 11-N 2-A)
03/01/06  Senate: VOTE: (25-Y 11-N 2-A)
03/01/06  House: Placed on Calendar
03/01/06  House: Senate substitute with amendment agreed to by House (62-Y 30-N 1-A)
03/01/06  House: VOTE: ADOPTION (62-Y 30-N 1-A)
03/07/06  House: Bill text as passed House and Senate (HB568ER)
03/07/06  House: Enrolled
03/07/06  House: Signed by Speaker
03/08/06  Senate: Signed by President
04/06/06  Governor: Approved by Governor-Chapter 780 (effective - see bill)
04/17/06  Governor: Acts of Assembly Chapter text (CHAP0780)