CODE OF VIRGINIA

TAXATION OF PIPELINE COMPANIES (§ 58.1-2627.1)

A. Every pipeline transmission company shall pay to the Department on its
allocated and apportioned net taxable income, in lieu of a license tax, the tax
levied pursuant to Chapter 3 (§ 58.1-300 et seq.) (State Income Tax) of this
title. There shall be deducted from such allocated and apportioned net income an
amount equal to the percentage that gross profit (operating revenues less cost
of purchased gas) derived from sales in this Commonwealth for consumption by the
purchaser of natural or manufactured gas is of the total gross profit in the
Commonwealth of the taxpayer.

B. The annual report of such company required pursuant to § 58.1-2628 shall be
made to the Department, on forms prepared and furnished by the Department, if
the company is a pipeline transmission company or to the Commission if a
pipeline distribution company. The Department shall assess the value of the
property of each pipeline transmission company and the Commission shall assess
the value of the property of each pipeline distribution company. The applicable
county, city, town and magisterial district property levies shall attach
thereto. The powers and duties granted to the Commission by §§ 58.1-2633 B and
C and 58.1-2634 shall apply mutatis mutandis to the Department.

C. A company liable for the license tax under subsection A shall not be liable
for the tax imposed by Chapter 28 (§ 58.1-2814 et seq.) of this title.

D. When a company qualifies as both a pipeline transmission company and a
pipeline distribution company, it shall for property tax valuation purposes be
considered a pipeline distribution company.

HISTORY: Code 1950, §§ 58-588, 58-590, 58-597; 1956, c. 69; 1964, c. 217;
1968, c. 637; 1971, Ex. Sess., c. 1; 1972, c. 813; 1980, cc. 82, 371; 1983, c.
570; 1984, c. 675; 2000, cc. 691, 706.