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HomeMy WebLinkAboutOrdinance-1997-1072 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Dalbec Council Bill No 8 Ordinance No. 1072 Series of 1997 TITLE AN ORDINANCE REPEALING AND REENACTING CHAPTER 22, ARTICLE III, OF THE CODE OF LAWS OF THE CITY OF WHEAT RIDGE, COLORADO, CONCERNING AN OCCUPATION AND BUSINESS TAX ON BASIC TELECOMMUNICATIONS SERVICE WHEREAS, providers of basic local telecommunications service are currently subject to a business and occupation tax upon the business and occupation of providing basic local exchange telephone service within the City and to the residents of the City The City enacted such a tax in 1977 and has continuously maintained that tax, and WHEREAS, the City recognizes that although the business of providing basic local telecommunications service was once a monopoly service under state law, it is now a competitive service under both state and federal law, and WHEREAS, the City expects that in the future numerous companies may provide basic local telecommunications service within Wheat Ridge, and WHEREAS, there may be significant differences in the size of the basic local telecommunications service providers operating within the City, and the City's business and occupation tax should reflect such differences, and WHEREAS, a business and occupation tax on providers of basic local telecommunications service should be uniform and nondiscriminatory and should not create barriers to entry into the business of providing basic local telecommunications service within Wheat Ridge, and WHEREAS, the business and occupation tax set forth in this Ordinance recognizes the difference in size of the providers of basic local telecommunications service that may operate within Wheat Ridge, is uniform, nondiscriminatory, and does not create barriers to entry, and WHEREAS, the business and occupation tax set forth in this Ordinance is not a new tax, or the extension of an existing tax or an increase in a tax, but is the reduction of an existing tax to new entrants in order to eliminate a potential barrier to the entry of new providers into the business of providing basIc local telecommunications service within the City, and WHEREAS, the tax provided in this Ordinance neither increases nor reduces the amount of the tax levied against the incumbent provider of basic local telecommunications service, and WHEREAS, this tax is nondiscriminatory to all providers of basic local telecommunications service because it is based upon the relative number of lines each company provides within the City MHJ.S:~027' 172126.1 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO, AS FOLLOWS Section 1 Chapter 22, Article III, of the Code of Laws of the City of Wheat Ridge is hereby repealed and reenacted to read as follows. ARTICLE III. BASIC LOCAL TELECOMMUNICATIONS SERVICE Section 22-100 Levy of tax There is hereby levied a tax on and against each person, corporation or entity engaged in the business or occupation of providing basic local telecommunications service within the City of Wheat Ridge Section 22-101 Definitions For the purposes of this Article III, the following terms shall be construed as defined herein a "Basic Local Telecommunications Service" means the electronic or optical transmission of information between separate points by prearranged means, which may include the provision of a tone, or its functional equivalent, a local line or other transmission path and such local usage as is necessary to place or receive a call Basic local telecommunications service does not include long distance service, cellular service or mobile radio telephone service However, the provision of cellular or mobile radio service to any resident, business or other entity as its primary local telecommunications service shall be deemed basic telecommunication service for the purpose of determining the applicability of this business and occupation tax b "Incumbent Basic Local Telecommunications Service Provider" or "Incumbent Provider" shall be the company or entity providing Basic Local Telecommunications Service within the City as of July 1, 1996 c "Line" shall mean a separate telephone number, except that, to the extent Basic Local Telecommunications Service is provided through trunks, a Line shall mean a network access register or its functional equivalent c "New Basic Local Telecommunications Service Provider" or" New Provider" shall be any company or entity other than the Incumbent Provider who enters into the business of providing Basic Local Telecommunications Service in the City Section 22-102. Local purpose The tax provided in this article is upon the affected occupations and businesses in the performance of local functions and is not a tax upon those functions relating to interstate commerce MHI'r;1027' 17212R.l -2- Section 22-103 Amount and payment of tax. The amount of the tax levied and payment of the tax shall be as follows a The Incumbent Basic Local Telecommunications Service Provider shall pay one hundred ninety thousand five hundred and seventy five dollars ($190,575 00) as follows One hundred ninety thousand five hundred and seventy-five dollars ($190,575 00) shall be paid in twelve (12) equal monthly installments of fifteen thousand eight hundred and eighty-one dollars and twenty-five cents ($15,881 25), each installment to be paid on the last business day of each calendar month b Each New Basic Local Telecommunications Service Provider shall pay a tax based on a calculated fraction of the tax paid by the Incumbent Basic Local Telecommunications Service Provider The amount shall be determined as follows (1) The Incumbent Provider Per Line Charge will be determined by dividing the Incumbent Basic Local Telecommunications Service Provider Tax by the number of customer lines provided by the Incumbent Basic Local Telecommunications Service Provider within Wheat Ridge Expressed as a formula, the ratio shall be as follows Incumbent Provider Tax ($190,575.00) No of Incumbent Provider Lines New Provider Tax - Number of New Provider Lines (2) The tax paid by each New Basic Local Telecommunications Service Provider shall be the Per Line Charge as defined through the above formula multiplied by the number of Lines provided in Wheat Ridge by the New Basic Local TelecommunicatIOns Provider c Calculation of the tax paid by a cellular or mobile radio telephone service provider shall be based only on the number of lines or the functional equivalent actually used to provide Basic Local Telecommunications Service as described in Section 22-101 above d The amount of the tax levied against each New Basic Local Telecommunication Service Provider shall be calculated each August and shall be effective on the following January 1 and shall be payable in twelve (12) equal monthly installments, each installment to be paid on the last business day of each calendar month Section 22-104 Failure to pay. If any Basic Local Telecommunications Service Provider subject to this article fails to pay the taxes as herein provided, the full amount thereof shall be due and collected from such Provider, and the same, together with an addition of ten (10) percent of the amount of taxes due shall be and is declared to be a debt due and owing from such Provider to the City MHY,53(127 17212(; 1 -3- Section 22-105. Inspection of Records. The City, its officers, agents or representatives, shall have the right at any reasonable time to examine the books and records of the Basic Local Telecommunications Service Providers which are subject to the provisions of tax imposed in this article and to make copies of the entries or contents thereof Section 22-106. Offenses and liabilities to continue (a) All offenses committed and all tax liabilities incurred prior to the effective date of this article pursuant to the prior versions of the telephone utility tax shall be and remain unconditionally due and payable, and shall constitute a debt to the city, and shall be treated as though all prior applicable ordinances and amendments thereto were in full force and effect for the purpose of sustaining any proper suit, action or prosecution with respect to such offenses and liabilities Section 22-107. Tax in lieu of other occupation taxes. The tax provided in this article shall be in lieu of all other occupation taxes or taxes on the privilege of doing business within the city on any provider of Basic Local Telecommunications Service subject to the provisions of this article Section 2 Supersession Clause If any provision, requirement or standard established by this Ordinance is found to conflict with similar provisions, requirements or standards found elsewhere in the Code of Laws of the City of Wheat Ridge, which are in existence as of the date of adoption of this Ordinance, the provisions, requirements and standards herein shall supersede and prevail Section 3. Safety Clause The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance IS necessary for the preservation of health and safety and for the protection of public convenience and welfare The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained Section 4 Severabilitv If any clause, sentence, paragraph, or part of this Ordinance or application thereof to any person or circumstances shall for any reason be judged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances Section 5 Effective Date This Ordinance shall take effect fifteen days after final publication, as provided by Section 5 11 of the Charter INTRODUCED, READ, AND ADOPTED on first reading by a vote of L to 0 on this 1 on day of February, 1997, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for March 24, , 1997, at 7'00 o'clock pm, in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado MH.J'o 53027' 172126_ 3 -4- READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of .JL. to ~, this 24th day of March , 1997 SIGNED by the Mayor on this 25thday of March 1997. (\ ,I I .<.*.~t '- ::'--1:. d::---, J DAN WILDE, MAYOR ATTEST ERK APPROVED AS TO FORM BY CITY AT/~-_ ~~~ GERALD E DAHL, CITY A HORNEY 1 st Publication. February 14, 1997 2nd Publication Anril 11. 1997 Wheat Ridge Transcript Effective Date April 26, 1997 MH.I'~3(]27 1121/R 1 5