(A) A grantee shall pay to the municipality a franchise fee of not less than 5% of the grantee's gross revenues or such other maximum amount as allowed by law.
(B) The franchise fee payment shall be in addition to any other tax or payment owed to the municipality by the grantee and shall not be construed as payment in lieu of municipal property taxes or other state, municipality or local taxes.
(C) The franchise fee and any other costs or penalties assessed shall be payable quarterly on a calendar year basis to the municipality within 30 days after the end of each quarter. The grantee shall also file a complete and accurate verified statement of all gross receipts as previously defined within said 30 days.
(D) The municipality shall have the right to inspect and copy the grantee's income records and the right to audit and to recompute any amounts determined to be payable under this chapter. Any additional amount due the municipality as a result of an audit shall be paid within 30 days following written notice to the grantee by the municipality, which notice shall include a copy of the audit report. If any audit discloses an underpayment of a franchise fee by an amount in excess of 4 % of the applicable fee, then the grantee shall pay the full cost of the audit. The grantee shall maintain books and records of its operations within and related to the municipality and the grantee's cable system in sufficient detail to show gross revenue, by service category, consistent with generally accepted accounting principles. Said books and records shall be retained in accordance with the grantee's document retention policies, but in no event less than five years.
(E) If any franchise payment or re-computed amount, cost or penalty, is not made on or before the applicable dates heretofore specified, interest shall be charged daily from such date at an annual rate of 12%.
(F) The acceptance by the municipality of any franchise fee payment shall not in any way be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of any payment be construed as a release of any claim the municipality may have for further or additional sums payable under the provisions of the franchise. All franchise fee payments shall be subject to audit and re-computation by the municipality in accordance with this section.
(G) The grantee shall acknowledge as follows:
(1) The franchise fee is not a tax;
(2) The franchise fee shall be in addition to any and all taxes, other applicable fees or charges that the grantee or any affiliate shall be required to pay to the municipality or to any State or Federal agency or authority, all of which shall be separate and distinct obligations of the grantee and its affiliates;
(3) Neither the grantee nor any affiliate shall have or make any claim for any deduction or other credit of all or any part of the franchise fee from or against any of said municipality taxes or other fees or charges that the grantee or any affiliate is required to pay to the municipality except as may be identified and authorized by federal or state law;
(4) Neither the grantee nor any affiliate shall apply or seek to apply all or any part of the franchise fee as a deduction or other credit from or against any of said municipality taxes or other fees or charges, each of which shall be deemed to be separate and distinct obligations of the grantee and its affiliates;
(5) Except as authorized by applicable law, if the grantee or any affiliate applies or seeks to apply all or any part of the amount of the franchise fee as a deduction or other credit from or against any municipality tax or other fee or charge, or if the grantee or any affiliate applies or seeks to apply all or any part of any such tax or other fee or charge as a deduction or other credit from or against the franchise fee, then, in any such event, such action will be deemed a violation of this chapter subject to the provisions of § 110.029 herein.
(H) The municipality may increase the franchise fee if and to the extent that the maximum allowable franchise fee is increased by the FCC. If the municipality desires to increase the franchise fee in that event, then the municipality shall provide at least 30 days written notice to the grantee. If, within 30 days after the municipality's notice, the grantee so requests, the municipality shall conduct a public hearing on the franchise fee increase. The effective date of the proposed franchise fee increase shall be delayed until the expiration of the 30 day notice period, if within that period, the grantee does not request a hearing, or if a hearing is requested, until the conclusion of the public hearing conducted pursuant to this division.
(Ord. 2000-10, passed 4-10-00)
Penalty, see § 110.999