Communications tax reform; revises services, report. (HB568)

Introduced By

Del. Sam Nixon (R-Richmond)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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 Paging Inter-Exchange (Both interstate and intrastate) Cable Television Satellite Television Wireless 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. Read the Bill »


04/06/2006: signed by governor


01/10/2006Prefiled and ordered printed; offered 01/11/06 061601432
01/10/2006Referred to Committee on Finance
01/22/2006Fiscal impact statement from TAX (HB568)
01/23/2006Reported from Finance with amendments (15-Y 7-N)
01/24/2006Read first time
01/25/2006Read second time
01/25/2006Committee amendments agreed to
01/25/2006Amendment by Delegate Nixon agreed to
01/25/2006Amendments by Delegate Marshall, R.G. rejected
01/25/2006Amendment by Delegate Orrock agreed to
01/25/2006Engrossed by House as amended HB568E
01/25/2006Printed as engrossed 061601432-E
01/26/2006Read third time and passed House (65-Y 33-N 1-A)
01/26/2006VOTE: PASSAGE (65-Y 33-N 1-A)
01/26/2006Reconsideration of passage agreed to by House
01/26/2006Passed House (62-Y 35-N 2-A)
01/26/2006VOTE: PASSAGE #2 (62-Y 35-N 2-A)
01/26/2006Communicated to Senate
01/26/2006Fiscal impact review from JLARC (HB568E)
01/27/2006Constitutional reading dispensed
01/27/2006Referred to Committee on Finance
02/17/2006Fiscal impact statement from TAX (HB568E)
02/28/2006Reported from Finance with substitute (12-Y 2-N 1-A)
02/28/2006Committee substitute printed 067378432-S1
03/01/2006Constitutional reading dispensed (39-Y 0-N)
03/01/2006VOTE: (39-Y 0-N)
03/01/2006Motion to reconsider pass by for the day agreed to (40-Y 0-N)
03/01/2006VOTE: (40-Y 0-N)
03/01/2006Passed by temporarily
03/01/2006Read third time
03/01/2006Reading of substitute waived
03/01/2006Committee substitute agreed to 067378432-S1
03/01/2006Reading of amendment waived
03/01/2006Amendment by Senator Wampler agreed to
03/01/2006Engrossed by Senate - committee substitute with amendment HB568S1
03/01/2006Passed Senate with substitute with amendment (25-Y 11-N 2-A)
03/01/2006VOTE: (25-Y 11-N 2-A)
03/01/2006Placed on Calendar
03/01/2006Senate substitute with amendment agreed to by House (62-Y 30-N 1-A)
03/01/2006VOTE: ADOPTION (62-Y 30-N 1-A)
03/07/2006Bill text as passed House and Senate (HB568ER)
03/07/2006Signed by Speaker
03/08/2006Signed by President
03/13/2006Fiscal impact statement from TAX (HB568ER)
04/06/2006G Approved by Governor-Chapter 780 (effective - see bill)
04/17/2006G Acts of Assembly Chapter text (CHAP0780)