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Division of Public Service Taxation

Minimum Tax on Electric Suppliers

Pursuant to §58.1-400.3 of the Code of VirginiaExternal Link logo, 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 .