Minimum Tax on Electric Suppliers
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 Suppliers Annual Tax Report .