License (Gross Receipts) Tax on Water Companies
Pursuant to §58.1-2620 - §58.1-2650 of the Code of Virginia, an annual state
license tax based on gross receipts is imposed on corporations furnishing water in Virginia.
A Statement of Gross Receipts is included as the last section of the Water Companies Annual Tax
If the tax for the tax year can reasonably be expected to exceed $5000
(gross receipts of $250,000 @ 2%), a company must file a declaration of estimated tax and make
estimated tax payments each quarter. The filings and payments are due on the fifteenth
(15th) day of April, June, September and December. The quarterly estimated payments are
installment payments on the annual state license tax.
An Estimated Tax Form is mailed to every water company each quarter prior
to the filing due date. However, failure to receive the form does not relieve a
company of its responsibility to make timely payments. Failure to make
the required estimated tax payments will result in additional penalties and
interest being imposed.
The Public Service Taxation Division mails annual tax bills
by May 15th, showing any license tax due and the special regulatory revenue tax due.
Tax payments are due June 1st. Any overpayments of license tax are refunded separately.
Failure to pay by the due date results in a 10% penalty.