(A) For the reason that the streets of the Town to be used by a company in the operation of its system within the boundaries of the Town are valuable public properties acquired and maintained by the Town at great expense to its taxpayers and that the grant to a company to use the streets for the purpose of furnishing cable service is a valuable property right without which a company would be required to invest substantial capital in right-of-way costs and acquisitions, a company shall pay to the Town an amount equal to 5% of the company’s gross revenue as defined herein (the “franchise fee”).
(B) Such payment of a franchise fee shall be in addition to any other tax or payment owed to the Town by a company.
(C) The franchise fee and any other costs or penalties assessed shall be payable on a quarterly basis to the Town, and a company shall pay same and file a complete and accurate verified statement of all gross revenue, as defined herein, within 45 days after each calendar quarter.
(D) The Town shall have the right to inspect a company’s income records and the right to audit and to recompute any amounts determined to be payable under this chapter; provided, however, that such audit shall take place within 36 months following the close of each of a company’s fiscal years. Any additional amount due to the Town as a result of the audit (together with the cost of the audit unless the shortage is of a de minimus amount) shall be paid within 30 days following written notice to a company by the Town, which notice shall include a copy of the audit report. Notwithstanding the foregoing, an amount shall be deemed de minimus if such amount is equal to 1% or less of the amount paid by a company during the audited period.
(E) If any franchise fee or recomputed amount, cost or penalty is not made on or before the applicable dates heretofore specified, interest shall be charged daily from such date at the then legal maximum rate in Tennessee, and a company shall reimburse the Town for any additional expenses and costs incurred by the Town by reason of the delinquent payment(s).
(F) Franchise fee does not include any tax, fee or assessment of general applicability.
(`83 Code, § 13-527)