A. Beginning January 1, 2007, there is levied and imposed, in addition to allother taxes and fees of every kind imposed by law, a sales or use tax on thecustomers of communications services in the amount of 5% of the sales priceof each communications service that is sourced to the Commonwealth inaccordance with § 58.1-649.
B. The sales price on which the tax is levied shall not include charges forany of the following: (i) an excise, sales, or similar tax levied by theUnited States or any state or local government on the purchase, sale, use, orconsumption of any communications service that is permitted or required to beadded to the sales price of such service, if the tax is stated separately;(ii) a fee or assessment levied by the United States or any state or localgovernment, including but not limited to, regulatory fees and emergencytelephone surcharges, that is required to be added to the price of service ifthe fee or assessment is separately stated; (iii) coin-operatedcommunications services; (iv) sale or recharge of a prepaid calling service;(v) provision of air-to-ground radiotelephone services, as that term isdefined in 47 C.F.R. § 22.99; (vi) a communications services provider'sinternal use of communications services in connection with its business ofproviding communications services; (vii) charges for property or otherservices that are not part of the sale of communications services, if thecharges are stated separately from the charges for communications services;(viii) sales for resale; (ix) charges for communications services to theCommonwealth, any political subdivision of the Commonwealth, and the federalgovernment and any agency or instrumentality of the federal government; and(x) charges for communications services to any customers on any federalmilitary bases or installations when a franchise fee or similar fee foraccess is payable to the federal government, or any agency or instrumentalitythereof, with respect to the same communications services.
C. Communications services on which the tax is hereby levied shall notinclude the following: (i) information services; (ii) installation ormaintenance of wiring or equipment on a customer's premises; (iii) the saleor rental of tangible personal property; (iv) the sale of advertising,including but not limited to, directory advertising; (v) bad check charges;(vi) billing and collection services; (vii) Internet access service,electronic mail service, electronic bulletin board service, or similarservices that are incidental to Internet access, such as voice-capable e-mailor instant messaging; (viii) digital products delivered electronically, suchas software, downloaded music, ring tones, and reading materials; and (ix)over-the-air radio and television service broadcast without charge by anentity licensed for such purposes by the Federal Communications Commission.Also, those entities exempt from the tax imposed in accordance with theprovisions of Article 4 (§ 58.1-3812 et seq.) of Chapter 38 of Title 58.1, ineffect on January 1, 2006, shall continue to be exempt from the tax imposedin accordance with the provisions of this chapter.
A. Beginning January 1, 2007, there is levied and imposed, in addition to allother taxes and fees of every kind imposed by law, a sales or use tax on thecustomers of communications services in the amount of 5% of the sales priceof each communications service that is sourced to the Commonwealth inaccordance with § 58.1-649.
B. The sales price on which the tax is levied shall not include charges forany of the following: (i) an excise, sales, or similar tax levied by theUnited States or any state or local government on the purchase, sale, use, orconsumption of any communications service that is permitted or required to beadded to the sales price of such service, if the tax is stated separately;(ii) a fee or assessment levied by the United States or any state or localgovernment, including but not limited to, regulatory fees and emergencytelephone surcharges, that is required to be added to the price of service ifthe fee or assessment is separately stated; (iii) coin-operatedcommunications services; (iv) sale or recharge of a prepaid calling service;(v) provision of air-to-ground radiotelephone services, as that term isdefined in 47 C.F.R. § 22.99; (vi) a communications services provider'sinternal use of communications services in connection with its business ofproviding communications services; (vii) charges for property or otherservices that are not part of the sale of communications services, if thecharges are stated separately from the charges for communications services;(viii) sales for resale; (ix) charges for communications services to theCommonwealth, any political subdivision of the Commonwealth, and the federalgovernment and any agency or instrumentality of the federal government; and(x) charges for communications services to any customers on any federalmilitary bases or installations when a franchise fee or similar fee foraccess is payable to the federal government, or any agency or instrumentalitythereof, with respect to the same communications services.
C. Communications services on which the tax is hereby levied shall notinclude the following: (i) information services; (ii) installation ormaintenance of wiring or equipment on a customer's premises; (iii) the saleor rental of tangible personal property; (iv) the sale of advertising,including but not limited to, directory advertising; (v) bad check charges;(vi) billing and collection services; (vii) Internet access service,electronic mail service, electronic bulletin board service, or similarservices that are incidental to Internet access, such as voice-capable e-mailor instant messaging; (viii) digital products delivered electronically, suchas software, downloaded music, ring tones, and reading materials; and (ix)over-the-air radio and television service broadcast without charge by anentity licensed for such purposes by the Federal Communications Commission.Also, those entities exempt from the tax imposed in accordance with theprovisions of Article 4 (§ 58.1-3812 et seq.) of Chapter 38 of Title 58.1, ineffect on January 1, 2006, shall continue to be exempt from the tax imposedin accordance with the provisions of this chapter.
A. Beginning January 1, 2007, there is levied and imposed, in addition to allother taxes and fees of every kind imposed by law, a sales or use tax on thecustomers of communications services in the amount of 5% of the sales priceof each communications service that is sourced to the Commonwealth inaccordance with § 58.1-649.
B. The sales price on which the tax is levied shall not include charges forany of the following: (i) an excise, sales, or similar tax levied by theUnited States or any state or local government on the purchase, sale, use, orconsumption of any communications service that is permitted or required to beadded to the sales price of such service, if the tax is stated separately;(ii) a fee or assessment levied by the United States or any state or localgovernment, including but not limited to, regulatory fees and emergencytelephone surcharges, that is required to be added to the price of service ifthe fee or assessment is separately stated; (iii) coin-operatedcommunications services; (iv) sale or recharge of a prepaid calling service;(v) provision of air-to-ground radiotelephone services, as that term isdefined in 47 C.F.R. § 22.99; (vi) a communications services provider'sinternal use of communications services in connection with its business ofproviding communications services; (vii) charges for property or otherservices that are not part of the sale of communications services, if thecharges are stated separately from the charges for communications services;(viii) sales for resale; (ix) charges for communications services to theCommonwealth, any political subdivision of the Commonwealth, and the federalgovernment and any agency or instrumentality of the federal government; and(x) charges for communications services to any customers on any federalmilitary bases or installations when a franchise fee or similar fee foraccess is payable to the federal government, or any agency or instrumentalitythereof, with respect to the same communications services.
C. Communications services on which the tax is hereby levied shall notinclude the following: (i) information services; (ii) installation ormaintenance of wiring or equipment on a customer's premises; (iii) the saleor rental of tangible personal property; (iv) the sale of advertising,including but not limited to, directory advertising; (v) bad check charges;(vi) billing and collection services; (vii) Internet access service,electronic mail service, electronic bulletin board service, or similarservices that are incidental to Internet access, such as voice-capable e-mailor instant messaging; (viii) digital products delivered electronically, suchas software, downloaded music, ring tones, and reading materials; and (ix)over-the-air radio and television service broadcast without charge by anentity licensed for such purposes by the Federal Communications Commission.Also, those entities exempt from the tax imposed in accordance with theprovisions of Article 4 (§ 58.1-3812 et seq.) of Chapter 38 of Title 58.1, ineffect on January 1, 2006, shall continue to be exempt from the tax imposedin accordance with the provisions of this chapter.
