Taxes and Fees
The Public Service Taxation Division collects various taxes and fees on the companies it assesses. These include:
Pursuant to §58.1-2660 of the Code of Virginia, a special regulatory revenue tax based on gross receipts is levied on the following Public Service Corporations:
- Telecommunications Companies - Telecom Annual Tax Report/Statement of Gross Receipts
- Water Companies - Water Annual Tax Report/Statement of Gross Receipts
- Railroads* - Railroad Statement of Gross Transportation Receipts
- Motor Vehicle Carriers - Motor Vehicle Carrier Special Tax Form
- Virginia Pilots' Association - Virginia Pilots Association Special Tax Form
These annual reports are due on April 15th. For telecommunications and water companies, a Statement of Gross Receipts is included as the last section of the Annual Tax Report.
The Division of Public Service Taxation mails tax bills by May 15th annually, and the special regulatory tax payments are due June 1st. Pursuant to §58.1-2611 of the Code of Virginia, failure to pay by the due date results in a 10% penalty.
The special regulatory revenue tax levied on electric suppliers and pipeline distribution companies or gas utilities is collected as a component of the utility consumption tax. More information can be found under the Electric Utility Consumption Tax section and the Natural Gas Consumption Tax section.
*NOTE: With the exception of the special regulatory revenue tax, all other assessment and taxation of railroad companies is administered by the Department of Taxation.
Pursuant to §58.1-2900-2903 of the Code of Virginia , a utility consumption tax is imposed on the consumers of electricity.
Electric Utility Consumption Tax Monthly Report
The report and remittance by the service provider is due on or before the last day of the succeeding month of collection. For example, the January report is due on February 28th.
Failure to pay by the due date results in a 10% penalty.
Pursuant to §58.1-2904 - 2907 of the Code of Virginia, a utility consumption tax is imposed on the consumers of natural gas.
Natural Gas Consumption Tax Monthly Report
The report and remittance by the service provider is due on or before the last day of the succeeding month of collection. For example, the January report is due on February 28th.
Failure to pay by the due date results in a 10% penalty.
Pursuant to §58.1-2626 of the Code of Virginia, an annual state license tax based on gross receipts is imposed on corporations furnishing water in Virginia.
A Statement of Gross Receipts is included as the last section of the Water Annual Tax Report/Statement of Gross Receipts and is due on or before April 15th.
The PST Division mails tax bills by May 15th annually, showing the license tax due and the special regulatory revenue tax due.
Tax payments are due June 1st.*
Pursuant to §58.1-2611 of the Code of Virginia, failure to pay by the due date will result in a 10% penalty.
*NOTE: Water companies with a tax liability exceeding $5,000 are no longer required to make quarterly estimated license tax payments during the taxable year; rather, those taxes are to be paid on June 1st of the tax year in one lump sum payment.
Article 4 of Chapter 26 of Title 58.1 of the Code of Virginia, which outlined provisions relating to estimated taxes payments by certain public service corporations, was repealed under SB1025. This legislation was passed during the 2017 session of the General Assembly and became effective January 1, 2019.
Pursuant to §58.1-2652 - §58.1-2658 of the Code of Virginia, a state tax is imposed on the rolling stock of certificated motor vehicle carriers doing business in Virginia. Each motor vehicle carrier must report annually on or before March 1 to the Commission, using the following report:
Annual Report for Assessment of Rolling Stock
The Public Service Taxation Division mails annual tax bills by May 15th with payment due June 1st.
Pursuant to §58.1-2611 of the Code of Virginia, failure to pay by the due date will result in a 10% penalty.
Pursuant to §58.1-400.1 of the Code of Virginia, telecommunications companies are subject to a minimum tax instead of a corporate income tax if the corporate income tax imposed by §58.1-400 of the Code of Virginia is less than the minimum tax.
Every tax year the Commission certifies the name, address, and gross receipts of each telecommunications company to the Department of Taxation. Each company is notified of its certification.
A Statement of Gross Receipts is included as the last section of the Telecom Annual Tax Report/Statement of Gross Receipts.
Pursuant to §58.1-400.3 of the Code of Virginia, certain electric suppliers are required to pay a minimum tax rather than a corporate income tax for any taxable year their minimum tax liability is greater than their corporate income tax liability. The minimum tax would be equal to 1.45% of the electric supplier's gross receipts minus the state's portion of the electric utility consumption tax billed to consumers. For electric cooperatives that are exempt from federal taxation, the minimum tax is equal to 1.45% of the cooperative's gross receipts from sales to nonmembers minus the consumption tax billed nonmembers. Cooperatives would pay the minimum tax only if it exceeds their modified net income tax.
Every tax year the Commission certifies the name, address, and the minimum tax information of each electric supplier to the Department of Taxation. Each company is notified of its certification.
A Statement of Gross Receipts is included as the last section of the Electric Annual Tax Report/Statement of Gross Receipts .