§ 4-6.2-3. Exemptions from the consumer utility tax on local telephone service.

The tax imposed by Section 4-6.2-2 shall not be imposed on the sale of telephone service to the government of the United States of America, to the government of the Commonwealth of Virginia, or to any political subdivisions of the Commonwealth of Virginia. In addition, the tax imposed by Section 4-6.2-2 shall not be imposed on the sale of telephone service to religious organizations for telephone service provided to buildings or structures occupied or used for religious worship and which are exempt from property taxation pursuant to Virginia Constitution Article X, § 6(2). Provided, however, that the sale of telephone service to religious organizations for use at the residences of their ministers shall not be exempt from the tax imposed by Section 4-6.2-2, and the sale of such telephone service to religious organizations for use at such residences of ministers shall be taxed at the rate established in Section 4-6.2-2 for bills provided for residential service. The tax imposed by Sections 4-6.2-2 shall not apply within the limits of any town within the County that imposes a similar tax on the sale of local telephone service and which meets the criteria for preemption of such County taxes set forth in Virginia Code § 58.1-3812(C). Finally, the tax imposed by Section 4-6.2-2 shall be subject to these further limitations:

(1)

Coin-box telephones: No tax shall be imposed on telephone service that is paid for by inserting coins in coin-operated telephones;

(2)

Flat rate service: With respect to flat rate service and flat message rate service, the tax imposed by Section 4-6.2-2 shall apply only to the amount payable for local area service and shall not apply to any specific charge for calls to additional points within or outside the County or to any general charge or rate differential payable for the privilege of calling points outside the County; and

(3)

Message rate service: Where purchasers of telephone service are charged on a message rate basis, the tax shall apply only to the basic charge for such service and shall not apply to any charge for additional message units. (38-00-4, § 1)