(A) The village hereby establishes a franchise tax on every natural gas company and every other person, firm, or corporation, their successors and assigns, owning, operating, controlling, leasing, or managing any natural gas plant or system, generating, manufacturing, selling, distributing, or transporting natural gas (hereinafter referred to as “energy providers”). Energy providers shall collect from their customers located within the corporate limits of the village and pay to the village an amount equal to 3% of gross receipts derived from the sale, distribution, or transportation of natural gas delivered within the present or future limits of the village. Gross receipts as used herein are revenues received from the sale, distribution, or transportation of natural gas, after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered.
(B) The amount paid by energy providers shall be in lieu of, and energy providers shall be exempt from, all other occupation, license, excise, or right-of-way permit fees or taxes which the village may impose for the rights and privileges herein granted or for the privilege of doing business within the village, and in the event any such fee, charge, license, tax, or assessment shall be imposed by the village, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax, or assessment imposed upon the energy providers. Ad valorem property taxes imposed generally upon all real and personal property within the village shall not be deemed to affect the obligation of the energy providers under this section.
(C) Any consideration hereunder shall be reported and paid to the village by energy providers on an annual basis. Such payment shall be made not more than 30 days following the close of the period for which payment is due. Initial and final payments shall be prorated for the portion of the period at the beginning and end of the term of this section.
(D) Energy providers shall list the local franchise tax collected from customers as a separate item on bills for utility service issued to customers. If at any time the state’s Public Service Commission or other authority having proper jurisdiction prohibits such recovery, then energy providers will no longer be obligated to collect and pay the franchise tax herein contemplated.
(E) The village shall provide copies of annexation ordinances to energy providers on a timely basis to ensure appropriate franchise tax collection from customers within the corporate limits of the village.
(F) The village shall have access to and the right to examine during normal business hours, those of energy providers’ books, receipts, files, records, and documents that are necessary to verify the correctness of payments due hereunder. If it is determined that a mistake was made in the payment of any franchise tax required hereunder, such mistake shall be corrected promptly upon discovery, such that any under payment by energy providers shall be paid within 30 days of the recalculation and any over payment by energy providers shall be discounted from the next payment(s) due.
(Ord. 2006-7, passed 9-13-2006)