Chapter 3.42
CABLE TELEVISION UTILITY TAX

Sections:

3.42.010    Tax created.

3.42.020    Levy and collection of tax.

3.42.010 Tax created.

There is created a utility tax in the amount of one percent to be levied on and after July 1, 2008, as set forth below, of the gross receipts against and upon the total annual revenues of cable television businesses operating within the city. (Ord. 6170 § 5, 2008.)

3.42.020 Levy and collection of tax.

There is levied a tax of one percent on the gross income of, and upon the total annual revenues of, cable television businesses operating within the city, which tax shall be collected from and levied upon the total receipts of such cable television business(es). For the purposes hereof, the following terms and definitions shall apply:

A. “Gross income” means the value proceeding or accruing from the sale of any tangible property or service, and receipts (including all sums earned or charged, whether received or not), by reason of the investment of capital in the business engaged in, including rentals, royalties, fees, or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses, including the amount of credit losses actually sustained by the taxpayer whose regular books or accounts are kept upon an accrual basis.

B. “Cable television business” means:

1. A system providing service pursuant to a franchise issued by the City under the Cable Communications Policy Act of 1984 Public Law No. 98-549, 47 U.S.C. Section 521, as it may be amended or superseded; or

2. Any system that competes directly with such franchised system by employing antennae, microwaves, wires, wave guides, coaxial cables, or other conductors, equipment or facilities designed, construed or used for the purpose of:

a. Collecting and amplifying local and distant broadcast television signals and distributing and transmitting them;

b. Transmitting original cable-cast programming not received through television broadcast signals; or

c. Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; provided, however, that “cable television service” shall not include entities that are subject to charges as “commercial TV stations” under 47 U.S.C. Section 158, as it may be amended or superseded.

C. The tax revenue generated by the one percent levied pursuant to Ordinance No. 6170 shall be relegated for use by the city in support of its arterial street system.

It is provided, however, that if the state of Washington provides a long-term sustainable funding source to the city of Auburn arterial street fund in an amount sufficient to off-set the amount of the cable television utility tax rates of this chapter, and the long-term funding source is sufficient to maintain the city of Auburn’s arterial street system’s pavement condition index (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable future, the utility tax on cable television businesses shall automatically terminate and the status of the tax shall be consistent with its status prior to the adoption of this chapter. (Ord. 6170 § 5, 2008.)