Utility Tax

Every person or business, including but not limited to public service corporations, that sells or furnishes a utility service must collect a City tax from the purchaser of the service.

Page updated on Jul 16, 2020 at 12:06 PM

Due Dates

Utility taxes for gas and electricity are due on or before the last day of the month following the month being reported.

Month Taxes
Collected from Customer
Due Date
January February 28
February March 31
March April 30
April May 31
May June 30
June July 31
July August 31
August September 30
September October 31
October November 30
November December 31
December January 31

Utility taxes for water are due on or before the fifteenth (15th) of the second calendar month following the month of collection

Month Taxes
Collected from Customer
Due Date
January March 15
February April 15
March May 15
April June 15
May July 15
June August 15
July September 15
August October 15
September November 15
October December 15
November January 15
December February 15

Computation of Tax

Residential

  • Electricity: $1.12 plus $0.012075/kwh not to exceed $3
    • Group Meter: $1.12 per dwelling unit plus $0.012075/kwh, not to exceed $3 multiplied by the number of dwelling units
  • Natural Gas: $1.28 plus $0.124444/CCF not to exceed $3
    • Group Meter: $1.28 per dwelling unit plus $0.050909/CCF, not to exceed $3 multiplied by the number of dwelling units
    • Group Meter Interruptible: $1.28 per dwelling unit plus $0.023267/CCF, not to exceed $3 multiplied by the number of dwelling units
  • Water: 15% of monthly water service charge

Commercial

  • Electricity: $1.07 plus $0.005071/kwh
  • Natural Gas: $1.42 plus $0.050213/CCF
    • Interruptible: $4.50 plus $0.003670/CCF
  • Water: 20% of first $150 of monthly water service charge

Industrial

  • Electricity: $1.07 plus $0.004131/kwh
  • Natural Gas: $1.42 plus $0.050213/CCF
  • Water: 20% of first $150 of monthly water service charge

Charitable

  • Electricity: $0.97 plus $0.004610/kwh, not to exceed $24
  • Natural Gas: $1.42 plus $0.050213/CCF, not to exceed $24
  • Water: 15% of first $150 of monthly water service charge

Churches
(provided utility services are used in and for property being devoted primarily to religious purposes at the time of purchase)

  • Electricity: $0.97 per month
  • Natural Gas: $1.42 per month
  • Water: Exempt

Filing Procedures

The tax appears on monthly utility bills and is collected by the provider of the utility service. All utility service tax reports and remittances must be filed monthly by utility service providers with:

Tax Audit, Research and Analysis
Department of Finance
City of Alexandria - Miscellaneous Tax
P.O. Box 34939
Alexandria, VA 22334-0939

Entities Excluded from Taxation

The Alexandria City Code exempts the following entities from taxation:

  • Federal agencies
  • Diplomatic personnel exempted by the laws of the United States
  • The State and its political subdivisions, boards, commissions, authorities and agencies (including the City)
  • The purchase of bottled water and service from the Alexandria Sanitation Authority.

 Definitions

Utility services - Electricity service, gas service and water service provided in the City.

Residential purchaser - The owner or tenant of property use for residential purposes. The term includes single family dwellings, apartment houses and other multiple family dwellings.

Commercial purchaser - The owner or tenant of property used primarily for commercial purposes, not including apartment houses and other multi-family dwellings.

Industrial purchaser - The owner or tenant of property used primarily for industrial purposes, but not including apartment houses and other multi-family dwellings.

Charitable organization - Charitable hospitals and other designated organizations that have been exempted by the City or State from real estate and personal property taxes. 

Business Records and Reports Subject to Audit

Persons liable for the tax should keep current and accurate records for audit by the City.

Contact Us

Tax Audit, Research and Analysis
301 King Street, City Hall, Room 1700
Alexandria, VA 22314
703.746.4800
Email:
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