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HomeMy WebLinkAbout95-31ORDINANCE 95-31 Amending Ordinance 95-21 Amending Article V, Chapter 16, Pulaski Town Code as Amended, to impose the Consumer Utiltiy TAx on Consumers of Cellular Telephone Service and to Change the Provisions Dealing with such a tax on Local Telephone Service. • ADOPTED: 9/19/95 EFFECTIVE: 9/1/95 • • ORDINANCE 95-31 AMENDING ORDINANCE 95-21 AMENDING ARTICLE V, CHAPTER 16, PULASKI TOWN CODE, AS AMENDED, TO E~~O5E THE CONSUMER UTILITY TAX ON CONSUMERS OF CELLULAR TELEPHONE SERVICE AND TO CHANGE THE PROVISIONS DEALING WITH SUCH A TAX ON LOCAL TELEPHONE SERVICE BE IT ORDAINED by the Town Council of the Town of Pulaski, Virginia, that: 1. Article V, Chapter 16, Pulaski Town Code (1981), as amended, is amended as follows: ARTICLE V. CONSUMER UTILITY AND TELECOMMUNICATIONS TAXES Section 16-81. Definitions. For the purposes of this article the following words and phrases shall have the meanings respectively ascribed to them by this section: Utility service. The phrase "utility service" shall include gas service and electric service. • Affiliated group. shall have the same meaning ascribed to it in 558.1-3703B(10), Virginia Code, except, for purposes of this article, the word "entity" shall be substituted for the word "corporation" whenever it is used in that section. Bad debts means any portion of a debt related to a sale of local telecommunication services, the gross charges for which are not otherwise deductible or excludable, that has become worthless or uncollectible, as determined under applicable federal income tax standards. If the portion of the debt deemed to be bad is subsequently paid, the service provider shall report and pay the tax on that portion during the reporting period in which the payment is made. Consumer means a person who, individually or through agents, employees, officers, representatives, or permittees, makes a taxable purchase of utility or local telecommunication services. Commercial or industrial consumer means a consumer or mobile service consumer who utilizes local telecommunication services or mobile local telecommunication service for other than residential purposes. Enhanced service means services that employ computer processing applications to act on the format, code, or protocol or similar aspects of the information transmitted; provide additional, different, or restructured information; or involve interaction with stored information. Gross charges means, subject to the exclusions of this section, the amount charged or paid for the taxable purchase of local telecommunication services. However, "gross charges" shall not include the following: 343 • (a) Charges or amounts paid that vary based on the distance and/or elapsed transmission time of the communication that are separately stated on the consumer's bill or invoice. (b) Charges or amounts paid for customer equipment, including such equipment that is leased or rented by the customer from any source, if such charges or amounts paid are separately identifiable from other amounts charged or paid for the provision of local telecommunication services on the service provider's books and records. (c) Charges of amounts paid for administrative services, including, without limitation, service connection and reconnection, late payments, and roamer daily surcharges. (d) Charges or amounts paid for special features that are not subject to taxation under 54251 of the Internal Revenue Code of 1986, as amended. (e) Charges or amounts paid that are (i) the tax imposed by S4251 of the Internal Revenue Code of 1986, as amended, or (ii) any other tax or surcharge imposed by statute, ordinance or regulatory authority. (fj Bad debts. Local telecommunication service, subject to the exclusions stated in this section, includes, without limitation, the two-way local transmission of messages through use of switched local . telephone services; telegraph services; teletypewriter; local cellular mobile radio telecommunication services; specialized mobile radio; stationary two-way radio; or any other form of two-way mobile and portable communications. Local telephone service subject to the exclusions stated in this section, includes any service subject to federal taxation as local telephone service as that term is defined in S4252 of the Internal Revenue Code of 1986, as amended or any successor statute. Mobile local telecommunication service means any two-way mobile or portable local telecommunication service, including cellular mobile radio telecommunication service and specialized mobile radio. Mobile service consumer means a person having a telephone number for mobile local telecommunication service who has made a taxable purchase of such service or on whose behalf another person has made a taxable purchase of such service. Mobile service provider means every person engaged in the business of selling mobile local telecommunication services to consumers. Residential consumer shall not include any consumer of mobile local telecommunication service and shall otherwise mean a consumer who uses utilities or local telecommunication service for residential purposes. Service address means the location of the telecommunication equipment from which the • telecommunication is originated or at which the telecommunication is received by a consumer. However, if the service address is not a defined location, as in the case of mobile telephones, maritime systems, air-to-ground systems and the like, service address shall mean the location 344 • of the subscriber's primazy use of the telecommunication equipment within the licensed service azea. A mobile service provider may obtain a signed statement for a consumer indicating which county, city or town within the licensed service azea is the location of the consumer's primazy use of the telecommunication equipment. A mobile service provider shall be entitled to rely absolutely on a consumer's signed statement and shall remit the taxes collected to the county, city or town identified by the consumer. In the absence of a signed statement by a consumer, a mobile service provider shall identify the county, city or town of the consumer's primazy use and shall remit the tax to such county, city or town based on any other reasonable method, including, without limitation, the consumer's billing address, service address, or telephone number within the licensed service azea. Seller of Utility Services includes any person or entity who sells or furnishes taxable utilty services within the Town. Service provider means every person or entity engaged in the business or selling local telecommunication services to consumers. Taxable purchase means the acquisition of telecommunication services for consumption or use; however, taxable purchase does not include (i) the provision of telecommunications among members of an affiliated group of entities by a member of the group for their own exclusive use and consumption, and (ii) the purchase of telecommunications for resale in the subsequent provision of telecommunications, including, without limitation, carrier access charges, right of access charges, and chazges for use of intercompany facilities; however, the acquisition of • telecommunications by a provider of enhanced services is not the purchase of telecommunications for resale, even when the cost of the telecommunications is sepazately stated to the purchaser of the enhanced services, as long as the primazy object of the purchase of the telecommunications by the provider is for the provision of enhanced services and not telecommunications. A person may make tax-free purchases of telecommunications for resale if the person provides to the service provider a sworn affidavit indicating that the person's purchases are nontaxable sales for resale. Section 16-82. Exemptions. The United States, the state and the political subdivisions thereof, boards, ;.ommissions and authorities as well as churches aze hereby exempt from payment of the tax imposed and levied by this article with respect to the purchase of utility services used by such agencies. Section 16.83. Imposition of Tax on Local Heat, Light and Power Utility Services; Rates. There is hereby imposed and levied by the town on the consumers of any utility service or services provided by heat, light, and power company or other corporations coming under the provisions of Chapter 26 (§58.1-2600 et seq.), a tax in the amount of fifteen (15) percent of the charge, exclusive of any federal tax thereon, subject to the limitations set out in this article, made by the seller against the purchaser with respect to each utility service. Such tax in every case shall be collected by the seller from the purchaser and shall be paid by the purchaser unto the seller for the use of the town at the time the purchase price or such charge shall become • due and payable under the agreement between the purchaser and the seller, provided that in case any monthly bills submitted by any seller for residential consumers of such utility service shall exceed fifteen dollazs ($15.00) for a residential user, there shall be no tax computed on so • much of such bill as shall exceed fifteen dollars ($15.00). In case any monthly bill submitted by any seller for a commercial or industrial consumer of such utility service shall exceed two hundred fifty dollars ($250.00), there shall be no tax computed on so much of said bill as shall exceed two hundred fifty dollars ($250.00). In case a bill is submitted by the seller for the purchase made by the user during periods of greater than one (1) month, then the amount of such bill subject to taxation shall be the amount in which a bill for the subject utility would be taxed in a single month multiplied by the number of months for which such bill is submitted. 16.84. Imposition of Tax on Local Telecommunication Services; Rates. (a) There is imposed a tax on the taxable purchase by a mobile service consumer of mobile local telecommunication service, if the mobile service consumer's service address is located within the town. The tax shall be ten percent (10%) of the monthly gross charge to a consumer of mobile local telecommunication service and shall not be applicable to any amount so charged in excess of fifteen dollars per month for each mobile service consumer. This limitation applies to residential and nonresidential consumers of mobile services. (b) The tax with respect to residential consumers of local telecommunication service, other than mobile local telecommunications services, shall be fifteen percent (15%) of the monthly gross charge to the consumer, and shall not be applicable to any amount so charged in excess of fifteen dollars ($15.00) a month. • (c) The tax with respect to a commercial or industrial consumer of local telecommunication service, other than mobile local telecommunications services, shall be fifteen percent of the monthly gross charge to the commercial or industrial consumer, and shall i~ot be applicable to any amount so charged in excess of two hundred fifty dollars ($250.00) a month. (d) For the purpose of this section, bills shall be considered monthly bills if submitted twelve times annually each for the period of approximately one month. Where a single commercial or industrial consumer is served by more than one meter, the maximum amount of charge subject to tax shall be computed as to each meter. (e) A service provider or mobile service provider, of local telecommunication service or mobile local telecommunication service, as appropriate, shall collect the tax from the consumer or mobile service consumer by adding the tax to the monthly gross charge for such services. The tax shall, when collected, be stated as a distinct item separate and apart from the monthly gross charge. Until the consumer or mobile service consumer pays the tax to the service provider, or mobile service provider, as appropriate, the tax shall constitute a debt of the consumer or mobile service consumer to the town. If any consumer or mobile service consumer refuses to pay the tax, the service provider or mobile service provider, as appropriate, shall notify the town. After the consumer or mobile service consumer pays the tax to the service provider, or mobile service provider, as appropriate, the axes collected shall be deemed to beheld in trust by the service provider or mobile service provider, as appropriate, until remitted to the town. • 346 • (f) A service provider or mobile service provider, as appropriate, shall remit monthly to the town the amount of tax billed during the preceding month to consumer or mobile service consumers with a service address in the town, less any discount allowed under this article. Section 16-85. Records. Every seller of utility services, service provider, or mobile service provider, shall keep complete records showing all purchases of utility service, local telecommunication service, or mobile local telecommunication service in the town, which records shall show the price charged against each purchaser or consumer, or mobile service consumer, with respect to each purchase, the date thereof, the date of payment thereof, and the amount of tax imposed under this article. Such records shall be kept open for inspection by the duly authorized agents of the town at reasonable times, and the duly authorized agents of the town shall have the right, power and authority to make transcripts thereof during such times as they may desire. Where utility services, local telecommunications services, or mobile local telecommunications services are furnished by the town, the director of finance shall keep complete records as required of every other seller under this article. Section 16-86. Duty of seller or service provider; discount. Section 16-86 is hereby amended to read as follows: It shall be the duty of every seller of utility services, service provider, or mobile service • provider, in acting as the tax collecting medium or agency for the town, to collect from the purchaser, consumer, or mobile service consumer, for the use of the town, the tax imposed by this article at the time of collecting the purchase price charged for the utility service, local telecommunication service, or mobile local telecommunication service. The taxes collected during each calendar month shall be reported by the seller, service provider, or mobile service provider, to the director of finance, on or before the fifteenth day of the second calendar month after collection, together with the name and address of any purchaser, consumer, or mobile service consumer who has refused to pay the tax. The required report shall be in the form prescribed by the director of finance. Section 16-87. Duty of director of finance to collect. The director of finance shall be charged with the power and the duty of collecting the taxes levied and imposed under this article and shall cause the taxes collected to be paid into the general treasury of the town. Section 16-88. Violations of article. It shall be unlawful for any purchaser, consumer, or mobile service consumer to fail, refuse or neglect to pay the tax imposed or levied by this article, or for any seller of utility services, service provider, or mobile service provider to violate the provisions hereof, or for any officer, agent or employee of any seller, service provider, or mobile service provider to violate • the provisions hereof; and each failure, refusal, neglect or violation and each day's continuance thereof shall constitute a separate offense. 347 • 2. This ordinance shall be effective on and after September 1, 1995, for bills sent to purchasers, consumers, or mobile service consumers on and after that date, provided that the Director of Finance sends written notice of these changes to the registered agent of the service provider that is required to collect the tax. This ordinance is adopted by this recorded vote of the Town Council of the Town of Pulaski, Virginia, on this 19th day of September, 1995. John J. Johnston Aye Roy H. D'Ardenne, Jr. Absent John W. Stone No W. Edgar Hale Absent Bettye Steger AYe Alma H. Holston ~e - W. H. Schrader, Jr. ~- Elbert G. Black fie Andrew L. Graham, Mayor ATTEST: • ~- a Patricia Pendergrast, Acting Clerk of Council • 348 • I, Ruth A. Harrell, Clerk of the Council of the Town of Pulaski, Virginia, do hereby certify that the foregoing Ordinance No. 95-1 is a true and correct copy of the Ordinance set out and adopted by the recorded vote of the Town Council on September 19, 1995. ~~ ~. ~ • •