CHAPTER 8
TELEPHONE FRANCHISE TAX

Sections:

6-8-101    Telephone Franchise Tax.

6-8-101 Telephone Franchise Tax.

For purposes of this Section, every person or company engaged in the business of providing telephone exchange service within the City and to whom a franchise has been granted for such business shall be known as a telephone public utility company. There is hereby levied upon every telephone public utility company a franchise tax equal to six percent (6%) of the gross revenue per annum derived by said telephone public utility company from all basic local exchange revenues received from subscribers located within the City and directly connected with the central office switching equipment of said telephone public utility company located in the City. Basic local exchange service revenues, as used in this Section, shall mean revenues received from the furnishing of the telecommunications within the City and access to the telecommunications network to either business, residential, or other customers, whether on a flat rate or measured basis, by means of an access line. Basic local exchange service revenues shall not include revenues obtained by the telephone public utility company from the provision of terminal telephone equipment services (such as basic telephone sets, private branch exchanges, and key telephone systems), or from other telecommunications equipment which is obtainable from both the telephone public utility company and other suppliers. Within forty-five (45) days after the end of each month in a calendar year, the public utility company taxed hereunder shall file with the City Treasurer a report of its gross revenue derived from the sale and use of public utility service in the City as defined herein, together with a computation of the tax levied hereunder against said utility. Coincidental with the filing of such report, the utility shall pay to the City Treasurer the amount of the tax due for the calendar month which is the subject of said report. The City Treasurer shall determine the accuracy of the tax computation, and if he finds any errors, the Treasurer shall report the same to the company for correction. If the tax as paid is found to be deficient, the company shall promptly remit the difference, and if the tax as paid is found excessive, the City shall promptly refund the difference. The records of the company pertaining to such report shall be open for inspection by the City or its duly authorized representative at all reasonable hours upon giving of reasonable notice of its intention to inspect such records for the purpose of verifying the subject report.

(1979 Code 6-8-1; adopted by Ordinance No. 8-82; amended by Ordinance No. 11-02)