§ 4.68.080. Telephone users tax.

A.

Imposition of Tax. Every person in the city using intrastate telephone communication services, other than a telephone corporation shall pay a tax at the rate of five percent (5%) of the charges billed for such services, including charges for service. The service user shall pay the tax to the service supplier at the same time as and along with payment of the charges billed for the services.

B.

Coin-Operated Telephones and Mobile Services. As used in this section, the term "charges" shall not include charges for services paid for by inserting coins in coin-operated telephones, except that where coin-operated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be included in the base for computing the amount of tax due. The words "telephone communication services" shall not include land mobile services or maritime mobile services as defined in Section 2.1 of Title 47 of the Code of Federal Regulations as that Section existed on May 24, 2006.

C.

Exemptions. Notwithstanding the provisions of Subsection A. of this section, a tax shall not be imposed upon any person for using intrastate telephone communication services to the extent that the amounts paid for such services are exempt from or not subject to, the tax imposed under Section 4251 of Title 26 of the United States Code, as that section was interpreted by the Internal Revenue Service before May 25, 2006.

D.

Duty of Seller. The person selling the intrastate telephone communication services shall collect the tax from the service user and shall remit the tax to the director.

E.

Procedure. The procedure for collection and remittance of the tax is set forth in Sections 4.68.110 et seq.

(Prior code § 17002; Ords. 22833, 27813, 27814.)