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August 31, 2000 <br /> <br />State won't adopt it and collect it. The gas companies will collect the changed tax and <br />pay the City. The figure may not be the same." Wade Bartlett, Director of Finance, <br />stated, "We receive approximately $14,600 in revenue from the gas companies." <br /> <br /> Mr. Glass continued, "The optional consumer utility tax is currently percentage- <br />based. You will have to convert from your current structure by October 31, 2000. You <br />can't raise more revenue in 2001, though, than in 1999. You will have to treat each <br />class of customer roughly the same. This will be a revenue-neutral transition. There's <br />also three other electrical taxes in Virginia today--State Electrical Consumption Tax, <br />Special Regulatory, and Local Consumption. All will change effective January 1, 2001. <br />This is the first time ever that the State will impose a tax on something provided by a <br />city, county, or town." Vice Mayor Teague stated, "lt's a disadvantage to the City and <br />should be characterized as such." <br /> <br /> Mr. Glass stated, "You've got multiple options to choose by December 31, 2000. <br />My personal choice would be a payment of tax equivalent amount to AEP [American <br />Electric Power]. City retail customers are exempt from State consumption tax; instead, <br />City pays the equivalent amount to AEP as part of its transmission charges. The City <br />may then include all, part, or none of that tax within its customers' retail charges. This <br />option provides the greatest flexibility." <br /> <br /> There being no further business to come before Council during their work <br />session meeting, upon motion by Council Member Roop, duly seconded, by unanimous <br />vote, Mayor Crabtree declared the meeting adjourned at 12:20 P. M. <br /> <br />Clerk of Council <br /> <br />Mayor <br /> <br /> <br />