(A) As compensation for the rights conferred by the grant of a franchise under this subchapter, including the privilege of engaging in the business of operating a cable television system in the municipality, the franchisee shall pay annually to the municipality a fee equal to 5% of gross revenues collected by the franchisee from charges for basic cable television service and optional cable television service rendered to subscribers within the municipality. Gross revenues shall not include charges for or revenues from: any taxes billed to and collected from subscribers; services other than the transmission and distribution of television signals; advertising; the leasing of cable channels; furnishing other communications and non-broadcast television services either directly or as a carrier for another party; installation charges and fees for moves, reconnections, inspection, repairs or modifications of any installations; other customer services for which separate charges are made; or any other income derived by the franchisee. Stated otherwise, the franchise fee shall be based upon the franchisee’s gross revenues actually received during the relevant period, from and relating to bills sent to and paid by township subscribers, but by way of clarity, excluding therefrom funds received by the franchisee from non-cable television services, funds paid to the company by third parties and those payments specifically excluded as gross revenues as set forth above.
(B) Payment of such annual fee shall be made not later than December 30 of the calendar year in which the fee accrues. Payment shall include the period from December 15 of the previous calendar year to December 15 of the present calendar year. Such fee shall be reduced by the amount of any tax, assessment, fee or other charge imposed, levied, made or collected by municipality upon or from the franchisee for the privilege of engaging in the business of operating a cable television system in the municipality.
(C) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BASIC CABLE TELEVISION SERVICE. The tier of cable television service to which all users must subscribe in order to obtain cable television service and for which a charge is made.
OPTIONAL CABLE TELEVISION SERVICE. The furnishing of television programming for which a per channel charge is made in addition to that for basic cable television service.
(Ord. 91, passed 12-10-1991)