Chapter 5.50
TELECOMMUNICATIONS
Sections:
Article I. Telecommunications Service Providers
5.50.040 Rate limitation and exemption therefrom.
5.50.050 Effective date of tax levy.
5.50.060 Changes in rate or repeal of the tax.
5.50.070 Interlocal agreement for collection of the tax.
5.50.080 Repeal of inconsistent taxes and fees.
Article II. Mobile Telephone Service Revenue Tax
5.50.120 Requirement to maintain electronic database or enhanced Zip Code listing.
5.50.130 Place of primary use.
5.50.140 Tax against customer.
Article I. Telecommunications Service Providers
5.50.010 Definitions.
As used in this article:
“Commission” means the State Tax Commission.
Customer. Subject to subsections (a) and (b) of this definition, “customer” means the person who is obligated under a contract with a telecommunications provider to pay for telecommunications service received under the contract.
(a) For purposes of this article, “customer” means:
(i) The person who is obligated under a contract with a telecommunications provider to pay for telecommunications service received under the contract; or
(ii) If the end user is not the person described in subsection (a)(i) of this definition, the end user of telecommunications service.
(b) “Customer” does not include a reseller:
(i) Of telecommunications service; or
(ii) For mobile telecommunications service, of a serving carrier under an agreement to serve the customer outside the telecommunications provider’s licensed service area.
“End user” means the person who uses a telecommunications service.
For purposes of telecommunications service provided to a person who is not an individual, “end user” means the individual who uses the telecommunications service on behalf of the person who is provided the telecommunications service.
“Gross receipts attributed to the municipality” means those gross receipts from a transaction for telecommunications services that is located within the municipality for the purposes of sales and use taxes under Title 59, Chapter 12, Utah Code Annotated 1953, Sales and Use Tax Act, and determined in accordance with Section 59-12-207, Utah Code Annotated 1953.
“Gross receipts from telecommunications service” means the revenue that a telecommunications provider receives for telecommunications service rendered except for amounts collected or paid as:
(a) A tax, fee, or charge:
(i) Imposed by a governmental entity;
(ii) Separately identified as a tax, fee, or charge in the transaction with the customer for the telecommunications service; and
(iii) Imposed only on a telecommunications provider;
(b) Sales and use taxes collected by the telecommunications provider from a customer under Title 59, Chapter 12, Sales and Use Tax Act; or
(c) Interest, a fee, or a charge that is charged by a telecommunications provider on a customer for failure to pay for telecommunications service when payment is due.
“Mobile telecommunications service” is as defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. 124.
“Municipality” means Riverton City.
“Place of primary use” means:
(a) For telecommunications service other than mobile telecommunications service, the street address representative of where the customer’s use of the telecommunications service primarily occurs, which shall be:
(i) The residential street address of the customer; or
(ii) The primary business street address of the customer; or
(b) For mobile telecommunications service, as defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. 124.
Service Address. Notwithstanding where a call is billed or paid, “service address” means:
(a) If the location described in this subsection is known, the location of the telecommunications equipment:
(i) To which a call is charged; and
(ii) From which the call originates or terminates;
(b) If the location described in subsection (a) of this definition is not known but the location described in this subsection is known, the location of the origination point of the signal of the telecommunications service first identified by:
(i) The telecommunications system of the telecommunications provider; or
(ii) If the system used to transport the signal is not a system of the telecommunications provider, information received by the telecommunications provider from its service provider; or
(c) If the locations described in subsection (a) or (b) of this definition are not known, the location of a customer’s place of primary use.
Telecommunications Provider.
(a) Subject to subsections (b) and (c) of this definition, “telecommunications provider” means a person that:
(i) Owns, controls, operates, or manages a telecommunications service; or
(ii) Engages in an activity described in subsection (a)(i) of this definition for the shared use with or resale to any person of the telecommunications service.
(b) A person described in subsection (a) of this definition is a telecommunications provider whether or not the Public Service Commission of Utah regulates:
(i) That person; or
(ii) The telecommunications service that the person owns, controls, operates, or manages.
(c) “Telecommunications provider” does not include an aggregator as defined in Section 54-8b-2, Utah Code Annotated 1953.
“Telecommunications service” means:
(a) Telephone service, as defined in Section 59-12-102, Utah Code Annotated 1953, other than mobile telecommunications service, that originates and terminates within the boundaries of this state; and
(b) Mobile telecommunications service, as defined in Section 59-12-102, Utah Code Annotated 1953:
(i) That originates and terminates within the boundaries of one state; and
(ii) Only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. 116 et seq. [Ord. 5-4-04-5.]
5.50.020 Levy of tax.
There is hereby levied a municipal telecommunications license tax on the gross receipts from telecommunications service attributed to this municipality. [Ord. 5-4-04-5.]
5.50.030 Rate.
The rate of the tax levy shall be four percent of the telecommunications provider’s gross receipts from telecommunications service that are attributed to the municipality subject to the following:
If the location of a transaction is determined to be other than this municipality then the rate imposed on the gross receipts for telecommunications services shall be the lower of (1) the rate imposed by the taxing jurisdiction in which the transaction is located or (2) the rate for nonmobile telecommunications services shall be the rate imposed by the municipality in which the customer’s service address is located; or for mobile telecommunications service, the rate imposed by the municipality of the customer’s primary place of use. [Ord. 5-4-04-5.]
5.50.040 Rate limitation and exemption therefrom.
The rate of this levy shall not exceed four percent of the telecommunications provider’s gross receipts from telecommunications service attributed to the municipality unless a higher rate is approved by a majority vote of the voters in this municipality that vote in:
(1) A municipal general election;
(2) A regular general election; or
(3) A local special election. [Ord. 5-4-04-5.]
5.50.050 Effective date of tax levy.
This tax shall be levied beginning the earlier of July 1, 2004, or the first day of any calendar quarter after a 75-day period beginning on the date the Commission received notice pursuant to Section 10-1-403, Utah Code Annotated 1953, that this municipality has enacted this article. [Ord. 5-4-04-5.]
5.50.060 Changes in rate or repeal of the tax.
This article is subject to the requirements of Section 10-1-403, Utah Code Annotated 1953. If the tax rate is changed or the tax is repealed, then the appropriate notice shall be given as provided in Section 10-1-403, Utah Code Annotated 1953. [Ord. 5-4-04-5.]
5.50.070 Interlocal agreement for collection of the tax.
On or before the effective date of the ordinance, the municipality shall enter into the uniform interlocal agreement with the Commission as described in Section 10-1-405, Utah Code Annotated 1953, for the collection, enforcement, and administration of this municipal telecommunications license tax. [Ord. 5-4-04-5.]
5.50.080 Repeal of inconsistent taxes and fees.
Any tax or fee previously enacted by this municipality under authority of Section 10-1-203, Utah Code Annotated 1953, or Title 11, Chapter 26, Utah Code Annotated 1953, Local Taxation of Utilities Limitation, is hereby repealed.
Nothing in this article shall be interpreted to repeal any municipal ordinance or fee which provides that the municipality may recover from a telecommunications provider the management costs of the municipality caused by the activities of the telecommunications provider in the rights-of-way of the municipality, if the fee is imposed in accordance with Section 72-7-102, Utah Code Annotated 1953, and is not related to the municipality’s loss of use of a highway as a result of the activities of the telecommunications provider in a right-of-way, or increased deterioration of a highway as a result of the activities of the telecommunications provider in a right-of-way, nor does this article limit the municipality’s right to charge fees or taxes on persons that are not subject to the municipal telecommunications license tax under this article and locate telecommunications facilities, as defined in Section 72-7-108, Utah Code Annotated 1953, in this municipality. [Ord. 5-4-04-5.]
Article II. Mobile Telephone Service Revenue Tax
5.50.090 Definitions.
For purposes of this article, the following terms are defined as follows:
“Customer” means:
(a) The person or entity, having a place of primary use within the city, that contracts with the home service provider for mobile telecommunications services; or
(b) If the end user of mobile telecommunications services is not the contracting party, the end user of the mobile telecommunications services; but this clause applies only for the purpose of determining the place of primary use.
“Customer” does not include:
(a) A reseller of mobile telecommunications service; or
(b) A serving carrier under an arrangement to serve the customer outside the home service provider’s licensed service area.
“Designated database provider” means a corporation, association, or other entity representing all the political subdivisions of a state that is:
(a) Responsible for providing an electronic database prescribed in 4 U.S.C. 119(a) if the state has not provided such electronic database; and
(b) Approved by municipal and county associations or leagues of the state whose responsibility it would otherwise be to provide such database prescribed by 4 U.S.C. 116 through 126.
“Enhanced Zip Code” means a United States postal Zip Code of nine or more digits.
“Home service provider” means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.
“Licensed service area” means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.
“Mobile telecommunications service” means commercial mobile radio service, as defined in 47 CFR 20.3. For purposes of this article, mobile telecommunications services shall not include:
(a) Pager services using mobile devices that do not allow for two-way voice communication;
(b) Narrow band personal communications services; and
(c) Short message services (SMS).
“Place of primary use” means the street address representative of where the customer’s use of the mobile telecommunications service primarily occurs, which must be:
(a) The residential street address or the primary business street address of the customer; and
(b) Within the licensed service area of the home service provider.
“Prepaid telephone calling services” means the right to purchase exclusively telecommunications services that must be paid for in advance, that enables the origination of calls using an access number, authorization code, or both, whether manually or electronically dialed, if the remaining amount of units of service that have been prepaid is known by the provider of the prepaid service on a continuous basis.
“Reseller” means:
(a) A provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service; and
(b) Does not include a serving carrier with which a home service provider arranges for the service to its customers outside the home service provider’s licensed service area.
“Serving carrier” means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider’s or reseller’s licensed service area. [Ord. 6-19-01-1 § 2(A).]
5.50.100 Monthly tax levied.
There is levied upon every home service provider a tax of $1.00 per month for each telephone number assigned to any customer whose place of primary use is within the city. The home service provider may or may not pass this tax on to its customers. If the home service provider passes the tax on to the customer, and the tax is reflected on the customer’s bill, the tax shall be shown on the bill as a flat rate municipal tax charge. [Ord. 6-19-01-1 § 2(B).]
5.50.110 Remittance date.
(1) Within 30 days after the end of each calendar month, the home service provider taxed hereunder shall file, with the city treasurer, a report computing the tax. Coincidental with the filing of such report, the business shall pay, to the city treasurer, the amount of the tax due for the calendar month subject to the report. If the thirtieth day after the end of each calendar month falls on a Saturday, Sunday, or state or federal holiday, the deadline for filing the monthly report and remitting payment for that month is extended to the next subsequent business day.
(2) Delinquent Payment. Any payment not paid when due shall be subject to a delinquency penalty charge of 10 percent of the unpaid amount. Failure to make full payment and penalty charges within 60 days of the applicable payment date shall constitute a violation of this article. All overdue amounts, including penalty charges, shall bear interest until paid at the rate of an additional 10 percent per annum.
(3) Reconciliation. Within three years after the filing of any report or the making of any payment, the city treasurer may examine such report or payment, determine the accuracy thereof and, if the city treasurer finds any errors, report such errors to the home service provider for correction. If any tax, as paid, shall be found deficient, the home service provider shall within 60 days remit the difference, and if the tax as paid be found excessive, the city shall within 60 days refund the difference plus interest at the same rate as if such amount was deficient. In the event of a disagreement, the home services provider shall file under protest pending the resolution of the dispute between the parties or through the courts.
(4) Record Inspection. The records of the home service provider pertaining to the reports and payment of the tax, including, but not limited to, any records deemed necessary by the city to calculate or confirm proper payment by the home service provider, shall be open for inspection by the city and its duly authorized representatives upon reasonable notice at all reasonable business hours of the home services provider within the statute of limitations period defined in subsection (3) of this section, Reconciliation.
(5) Home Service Provider Duty to Cooperate on Record Inspection.
(a) In order to facilitate any record inspection, the home service provider shall, upon 30 days prior written request:
(i) Grant the city or its duly authorized representatives reasonable access to those portions of the books and records of the home service provider necessary to calculate and confirm property payment of the tax; or
(ii) Provide the city or its duly authorized representatives with reports containing or based on information necessary to calculate and confirm proper payment of the tax.
(b) Any requests for such books, records, reports, or portions thereof shall specify in writing the purpose for such request. Any books, records, reports, or portions thereof provided by the home service provider to the city under a claim that such documents are confidential business records are hereby designated as protected records and shall not be copied or disclosed by the city to third parties without the written permission of the home service provider, unless such documents are determined by a court of law to constitute public records within the meaning of the Utah Government Records Access and Management Act. [Ord. 6-19-01-1 § 2(C).]
5.50.120 Requirement to maintain electronic database or enhanced Zip Code listing.
(1) Electronic Database.
(a) Provision of Database. The state may provide an electronic database to a home service provider; or, if the state does not provide such an electronic database, the designated database provider may choose to provide an electronic database to a home service provider.
(b) Format.
(i) Such electronic database, whether provided by the state or the designated database provider, shall be provided in a format approved by the American National Standards Institute’s Accredited Standards Committee X12, which, allowing for de minimis deviations, designates for each street address in the city, including, to the extent practicable, any multiple postal street addresses applicable to one street location, the appropriate taxing jurisdictions, and the appropriate code identified by one nationwide standard numeric code.
(ii) Such electronic database shall also provide the appropriate code for each street address with respect to political subdivisions that are not taxing jurisdictions when reasonably needed to determine the proper taxing jurisdiction.
(iii) The nationwide standard numeric codes shall contain the same number of numeric digits, with each digit or combination of digits referring to the same level of taxing jurisdiction throughout the United States, using a format similar to FIPS 55-3 or other appropriate standard approved by the Federation of Tax Administrators and the Multi-State Tax Commission or their successors. Each address shall be provided in standard postal format.
(2) Notice – Updates. The state or designated database provider that provides or maintains an electronic database described in subsection (1) of this section shall provide notice of the availability of the then-current electronic database, and any subsequent revisions thereof, by publication in the manner normally employed for the publication of informational tax, charge, or fee notices to taxpayers in such state.
(3) User Held Harmless. A home service provider using the data contained in an electronic database described in subsection (1) of this section shall be held harmless from any tax, charge, or fee liability that otherwise would be due solely as a result of any error or omission in such database provided by the city or designated database provider. The home service provider shall reflect changes made to such database during a calendar quarter, not later than 30 days after the end of such calendar quarter the state has issued notice of the availability of an electronic database reflecting such changes under subsection (2) of this section, Notice – Updates.
(4) Procedure If No Electronic Database Provided.
(a) Safe Harbor. If neither the state nor the designated database provider provides an electronic database, a home service provider shall be held harmless from any tax, charge, or fee liability in the city that otherwise would be due solely as a result of an assignment of a street address to an incorrect taxing jurisdiction, if the home service provider employs an enhanced Zip Code to assign each street address to a specific taxing jurisdiction and exercises due diligence to ensure that each such street address is assigned to the correct taxing jurisdiction. If an enhanced Zip Code overlaps boundaries of taxing jurisdictions of the same level, the home service provider must designate one specific jurisdiction within such enhanced Zip Code for use in taxing the activity for such enhanced Zip Code. Any enhanced Zip Code assignment changed is deemed to be in compliance with this section. For purposes of this section, there is a rebuttable presumption that a home service provider has exercised due diligence if the home service provider demonstrates that it has:
(i) Expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions;
(ii) Implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions; and
(iii) Used all reasonably obtainable and usable data pertaining to municipal annexations, incorporations, reorganizations, and any other changes in jurisdictional boundaries that materially affect the accuracy of such database.
(b) Termination of Safe Harbor. Subsection (4)(a) of this section, Safe Harbor, applies to a home service provider that is in compliance with the requirements of subsection (4)(a) of this section with respect to a state for which an electronic database is not provided, until the later of:
(i) Eighteen months after the nationwide standard numeric code has been approved by the Federation of Tax Administrators and the Multi-State Tax Commission; or
(ii) Six months after the state or a designated database provider in the state provides such database. [Ord. 6-19-01-1 § 2(D).]
5.50.130 Place of primary use.
(1) A home service provider is responsible for obtaining and maintaining the customer’s place of primary use. Subject to RCC 5.50.120, Requirement to maintain electronic database or enhanced Zip Code listing, and if the home service provider’s reliance on information provided by its customer is in good faith, a home service provider:
(a) May rely upon the applicable residential or business street address supplied by the home service provider’s customer.
(b) Is not liable for any additional taxes, charges, or fees based on a different determination of the place of primary use for taxes, charges, or fees that are customarily passed on to the customer as a separate address under existing agreements.
(2) A home service provider may treat the address used by the home service provider for tax purposes for any customer under a service contract or agreement in effect two years after the effective date of the ordinance codified in this article as that customer’s place of primary use for the remaining term of such service contract or agreement, excluding any extension or renewal of such service contract or agreement, for purposes of determining the taxing jurisdiction to which taxes, charges, or fees on charges for mobile telecommunications services are remitted. [Amended during 2011 recodification; Ord. 6-19-01-1 § 2(E).]
5.50.140 Tax against customer.
Each customer shall accurately report the customer’s place of primary use. The customer shall be liable for any taxes not paid by the home service provider as a result of the customer’s failure to accurately report the customer’s place of primary use. [Ord. 6-19-01-1 § 2(F).]
5.50.150 Nonapplication.
This article does not apply to the determination of the taxing status of:
(1) Prepaid telephone calling services; or
(2) Air-ground radiotelephone service, as defined in 47 CFR 22.99. [Ord. 6-19-01-1 § 2(G).]
5.50.160 Implementation date.
After January 1, 2001, a home service provider shall receive a minimum of 60 days’ notice regarding any changes to this chapter. [Amended during 2011 recodification; Ord. 6-19-01-1 § 2(H).]