Operating Budget 2025-2026

DESCRIPTION OF GENERAL FUND REVENUES ( continued)

Consumer Utility Tax: This tax is based on the purchase of utility services within the corporate limits. The rate for residential electric customers is $0.01135 per kWh, not to exceed $3.00 per month; for commercial electric customers it is $0.01115 per kWh, not to exceed $10.00 per month; and for industrial customers it is $0.012000 kWh, not to exceed $10.00 per month. The rates for natural gas residential customers is $0.1891 per CCF not to exceed $3.00 per month; for commercial and industrial customers it is $0.07955 per CCF, not to exceed $10.00 per month. Telecommunication Taxes: Effective January 1, 2007 this tax and the Cable Franchise Fee are

collected by the Commonwealth and returned to localities based on their June 30, 2006 percentage of telecommunication taxes collected to the total state taxes collected. This tax is a 5% sales tax on communication services such as telephone services (landline and cellular); cable services and satellite services. Also included is a state E-911 tax of $0.75 per access line and $0.50 for E-911 tax on mobile devices and a cable right-of-way fee of $1.15 per access line.

Meals Tax: A tax of 6 percent imposed on prepared food (including certain alcoholic beverages). Hotel and Motel Room Tax: A tax of 7 percent imposed on hotel and motel room rates, as well as

bed and breakfast operations. One percent of the rate is sent to the Montgomery Regional Tourism Board less 15% of this amount for the Town’s own efforts to promote tourism. A tax of $0.40 per pack of twenty cigarettes, which must be paid by the seller for all cigarette inventories. Payment of the tax is documented through display of a stamp.

Cigarette Tax:

Bank Franchise Tax: This tax is a $0.80 charge for every $100 of net capital in Blacksburg banks as of January 1 of each year. Bank stock returns are filed by March 1 and bank franchise taxes are due by June 1. Mobile Home Titling Tax: The State passes on a percentage of the sales tax collected on mobile homes sold to Blacksburg residents. DMV – Gross Receipts Tax – Rental Cars: The State passes on a 4% additional tax on the gross proceeds from the rental of any daily rental vehicle rented by establishments in the Town.

Utility Franchise Fee:

A fee paid to the Town by telecommunications service providers to cover the use of highways and street right-of-ways. This monthly fee per access line is calculated by the State. The fee is $1.20 per access line per month for FY 2024.

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