Chapter 12.24
TELECOMMUNICATIONS UTILITY PRIVILEGE TAX
Sections:
12.24.030 Imposition of privilege tax.
12.24.040 Other fees and charges.
12.24.060 Payment details – Quarterly.
12.24.090 Service/equipment modifications.
12.24.110 Compliance with other laws.
12.24.010 Definitions.
As used in this chapter, the following words shall mean:
“City manager” means the city manager or designee.
“Exchange access services” means:
1. Telephone exchange access lines or channels which provide local access from the premises of a subscriber in this state to the local telecommunications network to effect the transfer of information; and
2. Unless a separate tariff rate is charged therefor, any facility or service provided in connection with the services described in subsection (1) of this definition.
“Gross revenue” means those revenues derived from exchange access services, less net uncollectibles from such revenues. (Ord. 90-23 § 1)
12.24.020 Grant of privilege.
Except as limited by general law, and subject to LCMC 12.24.100, the city grants a nonexclusive privilege to use the public way within the corporate limits of the city to construct and maintain communication facilities. Such privilege is granted to any telecommunications utility authorized by the Oregon Public Utility Commission to operate within this state. Except as otherwise provided or allowed by this chapter, the Lincoln City Municipal Code or LCMC Title 17, communications facilities which have been strung upon poles or other fixtures aboveground may be maintained and all new installations of such communications facilities shall be laid underground. The city manager or designee shall have the authority to prescribe which public ways will be used and the location of the communication facilities within the public way. (Ord. 90-23 § 1)
12.24.030 Imposition of privilege tax.
There is imposed on any telecommunications utility using the public way within the corporate limits of the city a privilege tax in the sum equivalent to seven percent of the gross revenues of the telecommunications utility earned within the boundaries of the municipality. (Ord. 90-23 § 1)
12.24.040 Other fees and charges.
Nothing in this chapter shall give the telecommunications utility any credit against any nondiscriminatory business tax or ad valorem property tax now or hereafter levied against real property or personal property within the city, or against any local improvements assessment levied on the telecommunications utility’s property. To the extent that separate fees are imposed by the city on telecommunications utilities for street openings, construction, inspection or maintenance of fixtures or facilities, such fees may be deducted from the privilege tax imposed by this chapter. However, telecommunications utilities shall not deduct charges and penalties imposed by the city for noncompliance with charter provisions, ordinances, resolutions or permit conditions from the privilege tax imposed by this chapter. (Ord. 90-23 § 1)
12.24.050 Reporting of funds.
A. With each privilege tax payment, the telecommunications utility shall furnish a certified statement from the chief financial officer or designee, setting forth the amount and calculation of the payment. The statements to the best knowledge and belief of the financial officer shall detail the revenues received by the telecommunications utility from its operation within the city, and shall specify the nature and amount of all exclusions and deductions from such revenues claimed by the telecommunications utility in calculating the tax. The city manager may require the telecommunications utility to provide any additional information necessary or convenient for administration of the tax.
B. Each telecommunications utility subject to the tax shall keep available and open to inspection by the city manager, or designee, during regular office hours, all accounts and books necessary or convenient for ascertaining the tax liability under LCMC 12.24.030. No information obtained from the telecommunications utility pursuant to this section shall be disclosed except as provided by ORS 192.410 through 192.505. (Ord. 90-23 § 1)
12.24.060 Payment details – Quarterly.
The privilege tax required by this chapter shall be paid to the city on a quarterly basis. For purposes of determining the due dates of quarterly payments, quarters shall be deemed to end March 31st, June 30th, September 30th and December 31st of each year. All quarterly payments must be received by the chief financial officer of the city not later than 30 days following the end of the quarter for which the payment is due. (Ord. 90-23 § 1)
12.24.070 Audit.
In the event that an audit results in an assessment by, and an additional payment due to, the city, such additional payment shall be subject to interest at the rate of the prime rate at the time of final audit, plus two percent per year from the date the original tax payment was due. (Ord. 90-23 § 1)
12.24.080 Dispute resolution.
A. The city manager shall be responsible for determining the telecommunications utility’s compliance with the terms of this chapter. Should the city manager determine that the telecommunications utility is not in compliance, the manager shall notify the telecommunications utility, in writing, of the deficiency. The telecommunications utility may appeal the decision of the city manager to the city council by filing a written notice of appeal, specifying the grounds therefor, with the city manager. The notice of appeal must be received by the city manager not later than 20 days from the date of the mailing of the letter, from the city manager to the telecommunications utility, notifying it of the deficiency.
B. After receiving a timely notice of appeal, the city council shall, within 60 days thereafter, hold a public hearing to review the appeal, and thereafter shall issue a decision, in writing, which decision shall be final. (Ord. 90-23 § 1)
12.24.090 Service/equipment modifications.
The city may require the telecommunications utility, by ordinance or otherwise, to make such modifications, additions and extensions to its physical equipment, facilities or plant or service within the city as shall be reasonable or necessary in the interest of the public, and designate the location and nature of all additions and extensions, the time within which they must be completed and all conditions under which they must be constructed. (Ord. 90-23 § 1)
12.24.100 Indemnification.
The telecommunications utility shall defend, indemnify and hold harmless the city, its agents, officers and employees, from any and all claims, demands and damages of any kind, including attorney fees, which may arise, in any manner, from the acts or omissions of the telecommunications utility, its agents, officers or employees, in connection with the telecommunications utility’s operations pursuant to the privilege granted in LCMC 12.24.020. (Ord. 90-23 § 1)
12.24.110 Compliance with other laws.
The telecommunications utility’s use of the public way shall comply with the standard specifications of the city, if any, and all other applicable federal, state and local laws and regulations now in effect or hereafter adopted. No work affecting the public way shall be done by any telecommunications utility without first obtaining all permits required by the city, which may include plan submittal, approval and obtaining a public works permit. (Ord. 90-23 § 1)