|
Article
IV - Privilege Taxes
Sec.
___-470. Telecommunication services.
(a) The tax rate
shall be at an amount equal to _______ percent (___%) of the gross
income from the business activity upon every person engaging or continuing
in the business of providing telecommunication services to consumers
within this City.
(1) Telecommunication
services shall include:
(A) two-way
voice, sound, and/or video communication over a communications
channel.
(B) one-way
voice, sound, and/or video transmission or relay over a communications
channel.
(C) facsimile
transmissions.
(D) providing
relay or repeater service.
(E) providing
computer interface services over a communications channel.
(F) time-sharing
activities with a computer accomplished through the use of a communications
channel.
(2) Gross income
from the business activity of providing telecommunication services
to consumers within this City shall include:
(A) all fees
for connection to a telecommunication system.
(B) toll charges,
charges for transmissions, and charges for other telecommunications
services; provided that such charges relate to transmissions originating
in the City and terminating in this State.
(C) fees charged
for access to or subscription to or membership in a telecommunication
system or network.
(D) charges
for monitoring services relating to a security or burglar alarm
system located within the City where such system transmits or
receives signals or data over a communications channel.
(E) charges for telephone, fax or Internet access services provided at an additional charge by a
hotel business subject to taxation under Section ___-444.
(b) Resale
telecommunication services. Gross income from sales of telecommunication
services to another provider of telecommunication services for the
purpose of providing the purchaser's customers with such service shall
be exempt from the tax imposed by this Section; provided, however,
that such purchaser is properly licensed by the City to engage in
such business.
(c) Interstate
transmissions. Charges by a provider of telecommunication services
for transmissions originating in the City and terminating outside
the State are exempt from the tax imposed by this Section.
**((d)
Tax credit offset for franchise fees. There shall be allowed
as an offset, up to the amount of tax due, any amounts paid to the
City for license fees or franchise fees, but such offset shall not
be allowed against taxes imposed by any other Section of this Chapter.
Such offset shall not be deemed in conflict with or violation of subsection
___-400(b).
Model Option
#11: (d) (Reserved))**
(e) (Reserved)
++(Local Option
#DD:
(e) However, gross
income from the providing of telecommunication services by a cable
television system, as such system is defined in A.R.S. Section 9-505,
shall be exempt from the tax imposed by this Section.)++
(f) Prepaid
calling cards. Telecommunications services purchased with a prepaid
calling card that are taxable under Section ___-460 are exempt from
the tax imposed under this Section.
(g) Internet
access services. The gross income subject to tax under this section
shall not include sales of internet access services to the person's
subscribers and customers. For the purposes of this subsection:
(1) "Internet"
means the computer and telecommunications facilities that comprise
the interconnected worldwide network of networks that employ the
transmission control protocol or internet protocol, or any predecessor
or successor protocol, to communicate information of all kinds by
wire or radio.
(2) "Internet
Access" means a service that enables users to access content,
information, electronic mail or other services over the internet.
Internet access does not include telecommunication services provided
by a common carrier.
Web.
Rev. Date: 6-11-2007
©2001 Model City Tax Code
All rights reserved.
| 
