The Virginia Communications Sales Tax replaced the local utility tax on landline, wireless telephone service and local E-911 service, effective January 1, 2007. The communications sales tax, which is imposed on the charge for or sale of communications services at the rate of 5%, will generally be collected from consumers by their service providers and remitted to the Virginia Department of Taxation each month.
Also, a uniform statewide E-911 tax of $0.75 per line will replace the local E-911 taxes currently imposed for landline telephone service. In addition, the public rights-of-way use fee currently imposed on landline telephone service will now be imposed on cable television service. House Bill 568 (2006) also changed the way that cable service providers will pay the franchise fees on their local cable franchise agreements.
For more information, please visit the Virginia Department of Taxation's website.