CHAPTER 15

An Act to amend the Code of Virginia by adding thereto in Title 58
Chapter 12, a new article numbered 1.1 and new sections numbered
§8-514.8 through 58-514.12 so as to provide for declarations of esti-
mated tax by public service corporations which are subject to a State
franchise tax, a State license tax or other State tax on, or measured
by, or in respect to gross receipts, and to provide for payment of the
estimated tax.

[S 93]
Approved February 7, 1968

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto in Title 58,
Chapter 12, a new article numbered 1.1 and new sections numbered 58-
514.3 through 58-514.12, the new article and new sections being as follows:

Article 1.1.

Declarations of Estimated Tax by Public Service Corporations.

§ 58-514.8. Meaning of “taxable year” and “tax year.”—(a) The
term “taxable year,” as used in this article, means the calendar year
upon the basis of which the gross receipts are computed under this chapter.
The term includes, in the case of gross receipts for a fractional part of a
calendar year, the period in which such gross receipts are received.

(b) The term “tax year,” as used in this article, means the calendar
year next succeeding the taxable year, the same being the tax assessment
year and the year in which annual reports of gross receipts are required
fo be filed under this chapter and the annual tax paid with respect thereto,
wis evean for estimated tax paid for the taxable year as hereinafter pro-
vided.
§ 58-514.4. Declarations of estimated tax—(a) Requirement of
declaration.—Every public service corporation which is subject to a State
franchise tax, a State license tax, or other State tax on, or measured by,
or in respect to gross receipts as provided in this Chapter 12 of Title 58
of the Code of Virginia, as amended, shall make a declaration of estimated
tax for the taxable year if the tax imposed by this chapter, for the tax
year, on or measured by, or in respect to gross receipts, can reasonably be
expected to exceed five hundred dollars.

(b) Estimated tax.—For purposes of this article, the term “esti-
mated tax’? means the amount which the public service corporation esti-
mates as the amount of the tax imposed by this chapter for the tax year,
on, or measured by, or in respect to, gross receipts received in the taxable
year.

(c) Contents of declaration.The declaration shall contain such
pertinent information as the Commission may by forms or regulations
prescribe.

(d) Amendment of declaration—A public service corporation may
make amendments of a declaration filed during the taxable year under
regulations prescribed by the Commission, not exceeding the number
specified in § 58-514.5(b).

(e) Short taxable year.—A public service corporation with a tax-
able year of less than twelve months shall make a declaration in accord-
ance with regulations prescribed by the Commission.

§ 58-514.5. Time for filing declarations of estimated tax by public
service corporations.—(a) General rule.-—The declaration of estimated
uae required of public service corporations by § 58-514.4 shall be filed as

Oo 8:
If the requirements of § 58- The declaration shall be filed on or
514.4 are first met— before—
before the 1st day of the 4th
month of the taxable year the 15th day of the 4th month

of the taxable year
after the last day of the 8rd
month and before the 1st day
of the 6th month of the taz-
ADDIE YOAT .....cccccccccccseccccsssccesees the 15th day of the 6th month

of the taxable year
after the last day of the 5th
month and before the ist
day of the 9th month of the
CAXADLE YEA .....c.csesssesssecsessrceee the 15th day of the 9th month

of the taxable year
after the last day of the 8th
month and before the 1st day
of the 12th month of the
CAXADL!] YOCAT ...cccccccrsrresesseesees the 15th day of the 12th month
of the taxable year

(6) Amendment.—An amendment of a declaration may be filed in any
interval between installment dates prescribed for the taxable year, but
only one amendment may be filed in each such interval.

(c) Short taxable year.—The application of this section to taxable
years of less than twelve months shall be in accordance with regulations
prescribed by the Commission.

§ 58-514.6. Installment payments of estimated tax by public service
corporations.—(a) Amount and time for payment of each installment.—
The amount of estimated tax (as defined in § 58-514.4(b)) with respect
to which a declaration is required under § 58-514.4 shall be paid in install-
ments in accordance with the following table:
If the declaration is timely filed on

or before the 15th day of the— 4th 6th 9th 12th
month month month month
4th month of the taxable year ...... 25 25 25 25

6th month of the taxable year (but

after the 15th day of the 4th

MONK) ..rccccccscsccccrsssvecccccncccscscccscececs wane 83g 8314 834,
9th month of the taxable year (but

after the 15th day of the 6th

MONEN) ..rrsrececnesscccsnseccccescccccasercceeeses sees eee 50 50
12th month of the taxable year (but

after the 15th day of the 9th ©

MONEN ) ......cceccccccseccvccscsccsscccesceccenscs 100

(b) Timely fiing.—A declaration is timely filed af at is “not required
by § 58-514.5(a) to be filed on a date (determined without regard to any
een of time for filing the declaration) before the date it is actually

e

(c) Late filing.—If the declaration is filed after the time prescribed
in § 58-514.5(a) (determined without regard to any extension of time for
filing the declaration), there shall be paid at the time of such filing all
installments of estimated tax which would have been payable on or before
such time if the declaration had been filed within the time prescribed in
§ 58-514.5(a), and the remaining installments shall be paid at the times
at which, and in the amounts in which, they would have been payable
if the declaration had been so filed.

( Amendment of declaration.—If any amendment of a declara-
tion is filed, the amount of each remaining installment (if any) shall be
the amount which would have been payable if the new estimate had
been made when the first estimate for the taxable year was made, increased
or decreased (as the case may be), by the amount computed by dividing:
(1) The difference between (a) the amount of estimated tax required to
be paid before the date on which the amendment is made, and (b) the
amount of estimated tax which would have been required to be paid be-
fore such date if the new estimate had been made when the first estimate
was made, by (2) the number of installments remaining to be paid on
or after the date on which the amendment is made.

(e) Application to short taxable year.—The application of this sec-
tion to taxable years of less than twelve months shall be in accordance
with regulations prescribed by the Commission.

(f) Installments paid in advance.—At the election of the public serv-
ice corporation, any installment of the estimated tax may be paid before
the date prescribed for its payment.

(g) Payments are on account of tax for tax year.—Payment of the
estimated tax on, or measured by, or in respect to gross receipts, or any
enstallment thereof, shall be considered payment on account of the fran-
chise or license tax imposed by this chapter for the tax year.

(h) Extensions of time.—The Commission may grant a reasonable
extension of time for payment of estimated tax (or any installment), or
for filing any declaration pursuant to this article, on condition that the
taxpayer shall pay interest on the amount involved at the rate of one-
half of one percent per month or fraction thereof from the time the pay-
ment was due until the time of payment.

§ 58-514.7. Where declarations filed and how payments made; re-
funding overpayments.—(a) Every public service corporation required by
this article to file a declaration of estimated taz shall file the same with
the Commission, and all payments shall be made into the State treasury.

(b) If any public service corporation overestimates and overpays
estimated tax, the Commission shall order a refund of the amount of the
overpayment to the taxpayer. The overpayment shall be refunded out of
the State treasury on the order of the Commission upon the Comptroller.
The Commission may act under this paragraph within two years
from the thirty-first day of December of the year in which such overpay-
ment was made.

§ 58-514.8. Failure by public service corporation to pay estimated
tax.— (a) Addition to the tax.—In case of any underpayment of esti-
mated tax by a public service corporation, except as provided in sub-
section (d), there shall be added to the tax for the tax year an amount
determined at the rate of six percent per annum upon the amount of the
underpayment (determined under subsection (b)) for the period of the
underpayment (determined under subsection (c))

(b) Amount of underpayment.—For purposes of subsection (a), the
amount of the underpayment shall be the excess of —

(1) The amount of the installment which would be required to be
paid if the estimated tax were equal to eighty percent of the tax ascer-
tained for the tax year, over

(2) The amount, if any, of the installment paid on or before the
last date prescribed for payment.

(c) Period of underpayment.The period of the underpayment shall
run from the date the installment was required to be paid to whichever
of the following dates 1s the earlier—

(1) The first day of the sixth month following the close of the
taxable year.

(2) With respect to any portion of the underpayment, the date on
which such portion is paid. For purposes of this paragraph, a payment
of estimated tax on any installment date shall be considered a payment
of any previous underpayment only to the extent such payment exceeds
the amount of the installment determined under subsection (b)(1) for
such installment date.

(d) Exception.—Notwithstanding the provisions of the preceding
subsections, the addition to the tax with respect to any underpayment of
any installment shall not be imposed if the total amount of all payments of
estimated tax made on or before the last date prescribed for the payment
of such installment equals or exceeds the amount which would have been
required to be paid on or before such date if the estimated tax were
whichever of the following is the lesser—

(1) The tax as ascertained for the preceding tax year, and the tax
for such preceding tax year was computed on the basis of a taxable year
of twelve months.

(2) An amount equal to the tax computed at the rate applicable
to the tax year but otherwise on the basis of the facts shown on the
report of the public service corporation for, and the law applicable to, the
preceding tax year.

(3) (A) An amount equal to eighty percent of the tax on, or
measured by, or in respect to gross receipts received in the taxable year
computed by placing on an annualized basis the taxable gross receipts:

(1) for the first three months of the taxable year, in the case of the
installment required to be paid in the fourth month,

(it) for the first three months or for the first five months of the
taxable year, in the case of the installment required to be paid in the
sixth month,

(111) for. the first six months or for the first eight months of the
taxable year, in the case of the installment required to be paid in the
ninth month, and
(iv) for the first nine months or for the first eleven months of
the taxable year, in the case of the installment required to be paid in
the twelfth month of the taxable year.

(B) For purposes of this paragraph, the taxable gross receipts shall
be placed on an annualized basis by (1) multiplying by twelve the taz-
able gross receipts referred to in subparagraph (A), and (ii) dividing the
resulting amount by the number of months in the taxable year (8, 5, 6,
8,9, or 11, as the case may be) referred to in subparagraph (A).

(e) Short taxable year.—The application of this section to taxable
years of less than twelve months shall be in accordance with regulations
prescribed by the Commission.

§ 58-514.9.—Other provisions of this chapter not affected by this
article, except, etc.; public service corporations beginning or going out
of business. —Nothing in this article contained shall be construed as af-
fecting other provisions of this chapter except to the extent required to
give this article full effect, and except that, to the extent there is incon-
sistency between this article and §§ 58-504 ‘and 58-505, relating to public
service corporations beginning business, this article shall control. More-
over, if a public service corporation goes out of business or ceases to be
a public service corporation in any taxable or tax year, such an event
shall not defeat the payment of the tax on, measured by, or in respect
to gross receipts for the period in which the corporation operated as a
public service corporation and received gross receipts.

§ 58-514.10. Taxable and tax years to which §§ 58-514.8 through
§8-514.9 applicable-—The foregoing sections of this article shall apply
with respect to taxable years beginning after December thirty-one, nine-
teen hundred and sixty-eight, and to tax years beginning after December
thirty-one, nineteen hundred and sixty-nine.

§ 58-514.11. Article does not affect liability for tax respecting gross
receipts recetved in 1968.—This article shall not be construed as apply-
ing to or affecting in any way the tax imposed by this chapter on, or
measured by, or in respect to gross receipts received in the calendar
year nineteen hundred and sixty-eight by any public service corporation
to which this article applies, and such gross receipts shall be reported to
the Commission and taxed, and the tax shall be paid as prescribed by law
by June first, nineteen hundred and sixty-nine, the same as if this article
had not been enacted.

§ 58-514.12. Article not applicable to road tax on motor vehicle car-
riers of passengers nor to special revenue taxes imposed by Article 15.—
This article shall not apply to the road tax on motor vehicle carriers
of passengers based on gross receipts imposed by Article 13 of this chapter,
nor to the special revenue taxes imposed by Article 15 of this chapter.