§ 58.1-400.2. Taxation of electric suppliers, pipeline distributioncompanies, gas utilities, and gas suppliers.
A. Any electric supplier, pipeline distribution company, gas utility, or gassupplier that is subject to income tax pursuant to the Internal Revenue Codeof 1986, as amended, except those organized as cooperatives and exempt fromfederal taxation under § 501 of the Internal Revenue Code of 1986, asamended, shall be subject to the tax levied pursuant to § 58.1-400.
B. Any electric supplier that operates as a cooperative and is exempt fromincome tax pursuant to § 501 of the Internal Revenue Code of 1986, shall besubject to tax at the tax rate set forth in § 58.1-400 on all modified netincome derived from nonmember sales. Any gas supplier, pipeline distributioncompany or gas utility which has a taxable year that begins after January 1,2001, but before January 1, 2002, shall also be subject to the provisionsunder subsection E.
C. The following words and terms when used in this section shall have thefollowing meanings:
"Electric supplier" means any corporation, cooperative, partnership orother business entity providing electric service.
"Electricity" is deemed tangible personal property for purposes of thecorporate income tax pursuant to this article.
"Gas supplier" means any person licensed by the State CorporationCommission to engage in the business of selling natural gas.
"Gas utility" has the same meaning as provided in § 56-235.8.
"Members" means those customers of a cooperative who receive allocations ofpatronage capital from a cooperative.
"Modified net income" means all revenue of a cooperative from the sale ofelectricity within the Commonwealth with the following subtractions:
1. Revenue attributable to sales of electric power to its members.
2. Nonmember share of all ordinary and necessary expenses paid or incurredduring the taxable year in carrying on the sale of electric power tononmembers. Such nonmember expenses shall be determined by allocating theamount of such expenses between sales of electricity to members and sales ofelectricity to nonmembers. Such allocation shall be applicable to all taxcredits available to an electric supplier.
"Nonmember" means those customers which are not members.
"Ordinary and necessary expenses paid or incurred" means ordinary andnecessary expenses determined according to generally accepted accountingprinciples.
"Pipeline distribution company" has the same meaning as provided in §58.1-2600.
D. The Department of Taxation shall promulgate all regulations necessary toimplement the intent of this section. This section shall apply to taxableyears beginning on and after January 1, 2001.
E. 1. Any gas supplier, pipeline distribution company or gas utility whichhas a taxable year that begins after January 1, 2001, but before January 1,2002, shall be required to file an income tax return as if a short taxableyear has occurred covering the period beginning January 1, 2001, and endingon the last day prior to the beginning of the gas supplier's, pipelinedistribution company's or gas utility's taxable year pursuant to § 58.1-440 A.
2. If a return is required to be made under subdivision 1 of this subsection,federal taxable income will be determined using the methodology prescribed in§ 443 of the Internal Revenue Code, as if the gas supplier, pipelinedistribution company or gas utility was undergoing a change of annualaccounting period, and § 58.1-440 B and the regulations thereunder.
§ 58.1-400.2. Taxation of electric suppliers, pipeline distributioncompanies, gas utilities, and gas suppliers.
A. Any electric supplier, pipeline distribution company, gas utility, or gassupplier that is subject to income tax pursuant to the Internal Revenue Codeof 1986, as amended, except those organized as cooperatives and exempt fromfederal taxation under § 501 of the Internal Revenue Code of 1986, asamended, shall be subject to the tax levied pursuant to § 58.1-400.
B. Any electric supplier that operates as a cooperative and is exempt fromincome tax pursuant to § 501 of the Internal Revenue Code of 1986, shall besubject to tax at the tax rate set forth in § 58.1-400 on all modified netincome derived from nonmember sales. Any gas supplier, pipeline distributioncompany or gas utility which has a taxable year that begins after January 1,2001, but before January 1, 2002, shall also be subject to the provisionsunder subsection E.
C. The following words and terms when used in this section shall have thefollowing meanings:
"Electric supplier" means any corporation, cooperative, partnership orother business entity providing electric service.
"Electricity" is deemed tangible personal property for purposes of thecorporate income tax pursuant to this article.
"Gas supplier" means any person licensed by the State CorporationCommission to engage in the business of selling natural gas.
"Gas utility" has the same meaning as provided in § 56-235.8.
"Members" means those customers of a cooperative who receive allocations ofpatronage capital from a cooperative.
"Modified net income" means all revenue of a cooperative from the sale ofelectricity within the Commonwealth with the following subtractions:
1. Revenue attributable to sales of electric power to its members.
2. Nonmember share of all ordinary and necessary expenses paid or incurredduring the taxable year in carrying on the sale of electric power tononmembers. Such nonmember expenses shall be determined by allocating theamount of such expenses between sales of electricity to members and sales ofelectricity to nonmembers. Such allocation shall be applicable to all taxcredits available to an electric supplier.
"Nonmember" means those customers which are not members.
"Ordinary and necessary expenses paid or incurred" means ordinary andnecessary expenses determined according to generally accepted accountingprinciples.
"Pipeline distribution company" has the same meaning as provided in §58.1-2600.
D. The Department of Taxation shall promulgate all regulations necessary toimplement the intent of this section. This section shall apply to taxableyears beginning on and after January 1, 2001.
E. 1. Any gas supplier, pipeline distribution company or gas utility whichhas a taxable year that begins after January 1, 2001, but before January 1,2002, shall be required to file an income tax return as if a short taxableyear has occurred covering the period beginning January 1, 2001, and endingon the last day prior to the beginning of the gas supplier's, pipelinedistribution company's or gas utility's taxable year pursuant to § 58.1-440 A.
2. If a return is required to be made under subdivision 1 of this subsection,federal taxable income will be determined using the methodology prescribed in§ 443 of the Internal Revenue Code, as if the gas supplier, pipelinedistribution company or gas utility was undergoing a change of annualaccounting period, and § 58.1-440 B and the regulations thereunder.
§ 58.1-400.2. Taxation of electric suppliers, pipeline distributioncompanies, gas utilities, and gas suppliers.
A. Any electric supplier, pipeline distribution company, gas utility, or gassupplier that is subject to income tax pursuant to the Internal Revenue Codeof 1986, as amended, except those organized as cooperatives and exempt fromfederal taxation under § 501 of the Internal Revenue Code of 1986, asamended, shall be subject to the tax levied pursuant to § 58.1-400.
B. Any electric supplier that operates as a cooperative and is exempt fromincome tax pursuant to § 501 of the Internal Revenue Code of 1986, shall besubject to tax at the tax rate set forth in § 58.1-400 on all modified netincome derived from nonmember sales. Any gas supplier, pipeline distributioncompany or gas utility which has a taxable year that begins after January 1,2001, but before January 1, 2002, shall also be subject to the provisionsunder subsection E.
C. The following words and terms when used in this section shall have thefollowing meanings:
"Electric supplier" means any corporation, cooperative, partnership orother business entity providing electric service.
"Electricity" is deemed tangible personal property for purposes of thecorporate income tax pursuant to this article.
"Gas supplier" means any person licensed by the State CorporationCommission to engage in the business of selling natural gas.
"Gas utility" has the same meaning as provided in § 56-235.8.
"Members" means those customers of a cooperative who receive allocations ofpatronage capital from a cooperative.
"Modified net income" means all revenue of a cooperative from the sale ofelectricity within the Commonwealth with the following subtractions:
1. Revenue attributable to sales of electric power to its members.
2. Nonmember share of all ordinary and necessary expenses paid or incurredduring the taxable year in carrying on the sale of electric power tononmembers. Such nonmember expenses shall be determined by allocating theamount of such expenses between sales of electricity to members and sales ofelectricity to nonmembers. Such allocation shall be applicable to all taxcredits available to an electric supplier.
"Nonmember" means those customers which are not members.
"Ordinary and necessary expenses paid or incurred" means ordinary andnecessary expenses determined according to generally accepted accountingprinciples.
"Pipeline distribution company" has the same meaning as provided in §58.1-2600.
D. The Department of Taxation shall promulgate all regulations necessary toimplement the intent of this section. This section shall apply to taxableyears beginning on and after January 1, 2001.
E. 1. Any gas supplier, pipeline distribution company or gas utility whichhas a taxable year that begins after January 1, 2001, but before January 1,2002, shall be required to file an income tax return as if a short taxableyear has occurred covering the period beginning January 1, 2001, and endingon the last day prior to the beginning of the gas supplier's, pipelinedistribution company's or gas utility's taxable year pursuant to § 58.1-440 A.
2. If a return is required to be made under subdivision 1 of this subsection,federal taxable income will be determined using the methodology prescribed in§ 443 of the Internal Revenue Code, as if the gas supplier, pipelinedistribution company or gas utility was undergoing a change of annualaccounting period, and § 58.1-440 B and the regulations thereunder.
