(A) There is hereby imposed a tax upon every person in the city using communication services. The maximum tax imposed by this section shall be at the rate of six percent of the charges made for such services and shall be collected from the service user by the communication services supplier or its billing agent. There is a rebuttable presumption that communication services, which are billed to a billing or service address in the city, are used, in whole or in part, within the city’s boundaries, and such services are subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this section, the term
CHARGES shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the communication services.
(B) Mobile telecommunications service shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. § 124). The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this chapter, sourcing rules for the taxation of other communication services, including but not limited to post-paid communication services, prepaid communication services, and private communication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multi-jurisdictional taxation.
(C) The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this chapter, an administrative ruling identifying those communication services, or charges therefore, that are subject to or not subject to the tax of division (A) above.
(D) As used in this section, the term
TELECOMMUNICATION SERVICES shall include, but are not limited to charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory, administrative and other cost recovery charges; local number portability charges; and text messaging. As used in this section, the term TELECOMMUNICATION SERVICES shall not include separately stated charges for: installation or maintenance of wiring or equipment on a customer’s premises and wire maintenance fees; sale or rental of tangible personal property; digital products delivered electronically, such as software, downloaded music, ring tones and reading materials; 911 surcharge; and sales for resale.
(E) Charges for communication services (video) shall include, but are not limited to, charges for the following:
(1) Franchise fees and access fees (PEG);
(2) Initial installation of equipment necessary for provision and receipt of communication services;
(3) Late fees, collection fees, bad debt recoveries, and return check fees;
(4) Activation fees, reactivation fees, and reconnection fees;
(5) All video programming services (e.g., basic services, premium services, audio services, video games, pay-per-view services, or on demand programming);
(6) Ancillary programming services (e.g., electronic program guide services, search functions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of the video programming);
(7) Equipment leases (e.g., converters, remote devices); and
(8) Service calls, service protection plans, name changes, changes of services, and special services.
(F) To facilitate the uniform interpretation and application of similar ordinance provisions in other local jurisdictions in the state, the Tax Administrator may, prior to issuing and disseminating a sourcing rule or an administrative tax ruling, submit its proposed sourcing rule or administrative tax ruling to a municipal organization for review and comment, according to the rules and procedures of that municipal organization, or its successor organization.
(G) To prevent actual multi-jurisdictional taxation of communication services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or city on such communication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the city under this section.
(H) The tax on communication services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth day of the following month.
(I) Upon a showing of hardship, the Tax Administrator may administratively delay the implementation of this section until no later than January 1, 2008. Prior to such time, the Tax Administrator may administratively permit the telecommunications tax to be applied to telecommunication services in the same manner as the federal excise tax was applied to communication services as defined in §§ 4251 and 4252 of the Internal Revenue Code, and the IRS regulations and rulings pertaining thereto, prior to May 25, 2006, and regardless of whether charges for such services are based on time, distance, or on any other basis, and as such sections are limited by the exceptions of §§ 4252(d) and 4253.
(J) Notwithstanding the provisions of division (A) hereinabove, the City Council may, by Resolution, to be adopted on or before May 15 of each year, reduce the tax rate of division (A) and/or adopt a maximum tax for certain classes of customers, for the ensuing fiscal year as set forth in said Resolution. Unless the City Council re-adopts said Resolution by May 15 of the subsequent year, the tax percentage reduction and any other actions taken (e.g. establishment of a maximum tax) shall automatically expire and be discontinued, and the original voter-approved tax percentage shall apply, without the necessity of a vote of the people.
(Ord. 09-04, passed 12-1-2009; Ord. 07-05, passed 6-5-2007)