(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 a natural gas plant or system and/or generating, manufacturing, selling, distributing, or transporting natural gas (hereinafter referred to, collectively, as “energy providers”, each individually, as “energy provider”). 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 energy providers derive 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) (1) The amount paid by energy providers shall be in lieu of, and energy providers shall be exempt from, all other fees, charges, taxes, or assessments which the village may impose for the privilege of doing business within the village, including, without limitation, excise taxes, occupation taxes, licensing fees, or right-of-way permit fees, and in the event the village imposes any such fees, charge, tax or assessment, the payment to be made by energy providers in accordance with this section shall be reduced in an amount equal to any such fee, charge, tax, or assessment imposed upon the energy providers.
(2) Ad valorem property taxes imposed generally upon all real and personal property within the village shall not be deemed to affect energy providers’ obligations under this section.
(C) (1) Energy providers shall report and pay any amount payable under this section on an annual basis. Such payment shall be made no more than 30 days following the close of the period for which payment is due.
(2) Initial and final payments shall be prorated for the portions of the periods at the beginning and end of any franchise granted by the village to an energy provider.
(D) Energy providers shall list the franchise tax collected from customers as a separate item on bills for utility service issued to their customers. If at any time the Nebraska Public Service Commission or other authority having proper jurisdiction prohibits such recovery, energy providers will no longer be obligated to collect and pay the franchise tax.
(E) (1) 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 village’s corporate limits.
(2) An energy provider’s obligation to collect and pay the franchise tax from customers within an annexed area shall not commence until the later of:
(a) Sixty days after such energy provider’s receipt of the annexation ordinance pertaining to such area; or
(b) Such time as is reasonably necessary for such energy provider to identify the customers in the annexed area obligated to pay the franchise tax.
(F) (1) The village shall have access to and the right to examine, during normal business hours, such of an energy provider’s books, receipts, files, records, and documents as is necessary to verify the accuracy of payments due hereunder.
(2) 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 an energy provider shall be paid within 30 days of recalculation of the amount due, and any over-payment by an energy provider shall be deducted from the next payment of such franchise tax due by such energy provider to the village.
(Ord. 2007-03, passed 3-6-2007)