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Help & SupportChapter 3-6: Occupation Tax on Local Exchange Telephone Service Suppliers29
A tax is levied by this chapter upon the services of any local exchange telephone service supplier provided in the city.
The following words and phrases as used in this chapter shall have the following meanings:
"Annual line count" means the total number of lines having service addresses located within the city for which each provider subject to this chapter provided basic local exchange service as of the last business day of October of each year.
"Basic local exchange service" means "basic local exchange service" or "basic service" authorized, by a certificate of public convenience and necessity, or otherwise, under title 40, article 15, Colorado Revised Statutes, as amended or recodified from time to time.
"Inhabitant" means any individual, corporation, partnership, joint venture, company, firm, association, proprietorship or other entity residing or having a place of business within the city.
"Line" means a separate telephone number or telephone circuit identification number provided to an inhabitant at retail, having a service address located within the city except that, to the extent that a provider provides basic local exchange service through trunks, a line means an individual circuit, or its functional equivalent, provided to a customer at retail.
"New basic local exchange service provider or new provider" means any company or entity other than the incumbent provider who enters the business of providing basic local exchange service.
"Provider" means a company or entity providing basic local exchange service, through use of its own or leased facilities, through resale, or through any combination thereof.
(a) There is levied on and against each provider operating in the city a tax on the occupation and business of providing local exchange service at retail to inhabitants of the city.
(b) The annual amount and payment rates and times of the tax shall be as follows:
(1) All providers shall pay a tax of up to a total of $768,000.00 per year.
(2) The tax shall be determined by dividing $768,000.00 by the annual line count, determined under this chapter, and multiplying the result by the number of lines the provider provides within the city. Expressed as a formula, the calculation shall be as follows:
($768,000.00 ÷ annual line count) x provider lines = provider tax
(3) The tax levied against each provider shall be calculated by the city manager by the last business day of November, shall be effective on the first calendar day of the immediately following year, and shall be paid in full on or before February 20 of that year. The city manager shall promptly notify each provider of its annual tax and of its monthly amount for the next calendar year.
(4) Each new provider that first becomes subject to this chapter prior to the last business day of October during any calendar year shall file its initial annual report of its line count as required by section 3-6-5, "Initial and Annual Reports," B.R.C. 1981, and start to pay the tax during the next calendar year. Any new provider that first becomes subject to this chapter after the last business day of October of any year shall file its initial report on the last business day of October of the next year and start to pay the tax during the calendar year immediately following that date.
3-6-4 Effective Date; Schedule of Payment.
For each provider, the tax levied by this chapter shall commence on January 1, 2002. Except as this chapter may otherwise provide, the tax shall be due and payable in full on or before February 20 of each year.
3-6-5 Initial and Annual Reports.
On the last business day of October of each calendar year, each provider then subject to this chapter shall determine its total number of lines within the city, and file with the city manager a statement reporting its determined total number of lines. All statements shall be in such form as the city manager may require, including oaths, verifications, or acknowledgments. These reports and each provider's tax returns shall be subject to the provisions of section 3-2-20, "Preservation of Tax Returns and Reports," B.R.C. 1981.
3-6-6 Tax Reported to Inhabitants.
Each provider may separately state on each inhabitant's bill for basic local exchange service the proportionate share of the provider's liability imposed pursuant to this chapter. If the provider's service is regulated by the Colorado Public Utility Commission, such reporting of the tax to the inhabitant shall be in accordance with an applicable tariff approved by the Commission.
3-6-7 Failure to Pay; Penalty; City Action to Collect.
If any provider subject to the provisions of this chapter fails to pay the tax imposed within the time prescribed, the penalty in the amount of fifteen percent of the amount of the tax is due and payable in addition to such tax. Interest at the rate of twelve percent annually shall be due and payable on all amounts past due plus the amount of the penalty until the date that payment of the tax, penalty, and interest is made. Absent compromise, the city attorney may commence and prosecute to final judgment an action at law to collect the debt.
To enforce this chapter, the city and its officers, agents, or representatives including, without limitation, the city manager shall have the right, at all reasonable hours and times, to examine and copy the books and records of every provider subject to this chapter. The city shall use these books and records and copies only to enforce this chapter. Except under a court order, or in connection with enforcing this chapter, the city shall not divulge these books, records or copies to any other person.
3-6-9 Tax Not on Interstate Commerce; Not a Franchise.
The tax provided in this chapter is upon occupations and businesses in the performance of local functions and is not a tax upon functions relating to interstate commerce. None of the terms of this chapter mean that the city has granted any provider a franchise.
3-6-10 Tax in Lieu of Certain Other Consideration.
The tax levied in this chapter is in lieu of all other occupation taxes on any provider subject to this chapter. It is in addition to any otherwise applicable ad valorem taxes and other taxes and fees.
3-6-11 Violation of Section 3-6-5, Penalty.
Upon conviction, the municipal court shall punish any officer, agent or manager of a provider to this chapter who fails, neglects or refuses to make or file the annual statement of accounts provided in section 3-6-5, "Initial and Annual Reports," B.R.C. 1981, by a fine between $25.00 and $500.00. Each day after the statement becomes delinquent during which the officer, agent, or manager so fails, neglects or refuses to make and file such statement is a separate and distinct offense.
3-6-12 Enforcement of Tax Liability.
(a) The occupation tax imposed by this chapter is a first and prior lien on tangible personal property in which the person responsible to remit the tax has an ownership interest, subject only to valid mortgages or other liens of record at the time of and prior to the recording of notice of tax lien as provided in subsection 3-2-27(c), B.R.C. 1981.
(b) The provisions of sections 3-2-27, "Tax Constitutes Lien," 3-2-29, "Sale of Business Subject to Lien," 3-2-30, "Certificate of Discharge of Lien," 3-2-31, "Jeopardy Assessment," 3-2-32, "Enforcing the Collection of Taxes Due (Applies to Entire Title)," 3-2-33, "Recovery of Unpaid Tax by Action at Law," 3-2-34, "City May be a Party Defendant," 3-2-35, "Injunctive Relief," 3-2-36, "Obligations of Fiduciaries and Others," and 3-2-38, "Limitations," B.R.C. 1981, providing for enforcement of collection of taxes due, govern the authority of the city manager to collect the occupation tax imposed under this chapter.
3-6-13 Offenses and Liabilities to Continue.
All offenses committed and all tax liabilities incurred before amendment of this chapter, under prior versions of the telephone utility preparation tax, shall be and remain unconditionally due and payable, 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.
29 Adopted by Ordinance No. 4610. Amended by Ordinance No. 5425. Derived from Ordinance Nos. 3664, 4100, 4115. Repealed and reenacted by Ordinance No. 7163.