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Public Service Taxation
 

Frequently Asked Questions

Please see below:

Yes. The following is a list of wireless companies currently assessed by PST:
 

  • Appalachian Wireless
    • East Kentucky Network, LLC
  • AT&T
    • AT&T Mobility Spectrum LLC
    • New Cingular Wireless PCS, LLC
  • T-Mobile
    • T-Mobile License LLC
    • Nextel West Corp.
    • Sprintcom, Inc.
    • Sprint Spectrum License Holder II LLC
    • Sprint Spectrum License Holder III LLC
  • US Cellular
    • USCOC of Virginia RSA #3, Inc.
    • USCOC Nebraska / Kansas, LLC
    • USCOC of Chicago, LLC
    • USCOC of Central Illinois, LLC
  • Verizon Wireless
    • AirTouch Cellular Inc.
    • Alltel Communications LLC
    • Cellco Partnership
    • Petersburg Cellular Partnership
    • Virginia RSA 5 Limited Partnership

The following is a list of allowable gross receipts deductions:
 
 

  • *Unbundled Network Facilities – These are unbundled services offered to the competitive local exchange carrier by the local exchange company to enable them to complete a call or provide a service to their customer (Ex. caller ID, call waiting, switching service or provide a portion of a line).  Private line services provided to another telecommunications company and dark fiber that is sold or leased to another telecommunications company that the SCC assesses can both be included in this deduction.

 

  • *Completion, Origination, or Interconnection of Telephone Calls with the Taxpayer’s Network – This deduction would only be for those services provided to a telecommunications company and not an end user customer.

 

  • *Transport of Telephone Calls over Taxpayer’s Network – If you transport a call over your network for a customer of another telecommunications company, then the amount you receive from the company for carrying their customers call can be deducted by you.

 

  • *Taxpayer’s Telephone Services for Resale – These are intrastate services sold only to a competitive local exchange carrier by a local exchange company at a wholesale price.

 

  • *Roaming Outcollect Revenue (Cellular & PCS) – The wireless company may only deduct the roaming revenue it receives from other wireless companies.

 

  • Revenue Billed on behalf of a Telephone Company which is later paid to that Company – If a local company adds the long distance charges for another company on the customer's local phone bill and later turns that revenue over to the long distance company, then that revenue can be deducted.  Revenue only falls under this category if it is revenue that the company could opt to bill themselves.

 

  • E-911 Wireless Service – This is not subject to Minimum Tax and Special Tax. However, the 3% commission received and any other revenue received that is related to this is subject to both the Minimum Tax and Special Tax.             

 

  • Pay Telephone Revenue Other Than Line Charge (Deduction for Special Tax Only) – All revenue associated with the pay phone can be deducted except the line charge.

 

  • Right of Way Use Fees – These revenues are not subject to the Minimum Tax or Special Tax and are fully deductible.

 

  • Subscriber Line Charges / End User Common Line Charges / Access Recovery Charge – As these charges are regulated and capped by the FCC, they are considered interstate and therefore should be deducted under the Minimum Tax and the Special Revenue Tax if Total Gross Receipts are under $5 million.  If Total Gross Receipts exceed $5 million, then these charges would be deductible on the Special Revenue Tax only. (See VA Code Section § 58.1-400.1 for interstate revenue $5 million rule.)

 

  • Universal Service Charges / Connect America Fund – As these charges are considered interstate by the FCC, if Total Gross Receipts are less than $5 million, then the company can deduct all universal service charges from both the Minimum Tax and the Special Revenue Tax.  If Total Gross Receipts exceed $5 million, then the company can deduct all universal service charges from the Special Revenue Tax only. 

 

  • Interstate Revenue – If Total Gross Receipts are less than $5 million, then the company can deduct all interstate revenue from both the Minimum Tax and the Special Revenue Tax.  If Total Gross Receipts exceed $5 million, then the company can deduct all interstate revenue from the Special Revenue Tax only.  Interstate private line services can also be deducted here on only the Special Revenue Tax if Total Gross Receipts exceed $5 million.  If Total Gross Receipts are less than $5 million, then the company can deduct all interstate private line services from both the Minimum Tax and the Special Revenue Tax.

 

  • International Revenue – Fully deductible from both the Minimum Tax and the Special Revenue Tax.

 

  • Internet Revenue – Internet revenue is considered interstate by the FCC and therefore should be deducted under the Minimum Tax and the Special Revenue Tax if Total Gross Receipts are under $5 million.  If Total Gross Receipts exceed $5 million, then internet revenue would be deductible on the Special Revenue Tax only.   

 

  • DSL Revenue – DSL is considered interstate revenue and therefore should be deducted under the Minimum Tax and the Special Revenue Tax if Total Gross Receipts are under $5 million.  If Total Gross Receipts exceed $5 million, then DSL revenue would be deductible on the Special Revenue Tax only.

 

  • Interstate portion of VOIP Services Revenue – The interstate portion of VOIP services as determined by the company or using the FCC USF safe harbor percentage (64.9%) can be deducted on both the Minimum Tax and the Special Revenue Tax if Total Gross Receipts are less than $5 million.  If Total Gross Receipts exceed $5 million, the interstate portion of VOIP would be deductible on the Special Revenue Tax only.         

 
* These deductions are allowable if the revenue is from a telecommunications company that reports to the SCC (a list of companies is available on the Public Service Corporations page).
 

The SCC's Division of Public Utility Regulation provides information on fees, taxes, and other charges that often appear on telephone bills.

All Annual Tax Reports are to be filed by April 15th, except the Annual Report of Rolling Stock for Motor Carriers, which is due March 1st.

  • Rolling Stock Tax payments are due June 1st.
  • Special Regulatory Revenue Tax payments are due June 1st.
  • Consumption Tax payments are due the last day of each month.
  • Payphone and Operator Service Provider annual registration fees are due January 16th.
  • License Tax payments (on gross receipts of water companies) are due June 1st.

Visit the Annual Reports and Taxes & Fees sections of this site for further details.

This Division is not responsible for the levying of these taxes. Questions regarding these taxes or individual refunds should be directed to the Department of Taxation at www.tax.virginia.gov or to the following phone numbers:

  • Individual income taxes: 804-367-8031
  • Corporate income taxes: 804-367-8037
  • For tax refunds: 804-367-2486
  • Sales and use tax (including communications): 804-404-4195
  • Minimum tax: 804-367-8037

Complaints concerning services of public utilities are handled by another division in the Commission. For electric, gas, telecommunications, and water services, contact the Division of Public Utility Regulation at 804-371-9611, or toll-free (within Virginia), 1-800-552-7945.

The Division of Public Service Taxation is responsible for the assessment of those companies as defined under "telephone company" in §58.1-2600 of the Code of Virginia. These companies include those holding a certificate granted by the State Corporation Commission authorizing telephone service, or authorized by the Federal Communications Commission to provide cellular mobile or broadband personal communications services, or resellers with a domestic 214 issued by the FCC and affiliated with a company certificated by the SCC. (Please see the mentioned code section for a complete definition.)

As stated in §58.1-2628, effective for tax years beginning on and after January 1, 2002, "electric suppliers" as defined in §58.1-2600, shall report certain property to be assessed by the Commission. (Please see the mentioned code sections for a complete definition of the companies and property to be assessed.) New legislation became effective April 2, 2002 that exempts all persons who own or operate facilities that have a capacity of 25 megawatts or less from the definition of an "electric supplier" to be assessed by the Commission. If you own or operate a facility for the generation, storage, transmission or distribution of electricity for sale that is 25 megawatts or less you will continue to report and be assessed locally.

All local property taxes levied on the property of public service corporations are extended by the Commissioner of the Revenue or Director of Finance for the city, county, or town, wherein the property is located. Once the assessment is certified to the localities by the Commission, any questions concerning the payment of property taxes should be directed to the locality. The Department of Taxation annually compiles and publishes the Virginia local tax rates. This information is available at www.tax.virginia.gov.

All inquiries pertaining to the Communications tax should be directed to the Virginia Department of Taxation's Customer Service Division at 804-404-4195 or at https://www.tax.virginia.gov/communications-taxes.