3.42.020 Cable television utility tax.
A. There is levied a six percent tax on the gross subscriber revenues and total annual revenues of cable television businesses operating within the city. This tax shall be collected from and levied upon the total receipts of such cable television business(es).
B. On and after January 1, 2023, the finance director shall allocate one percent of the tax revenue received under this section for the purpose of acquiring, investing in, constructing, improving, providing, operating, preserving, maintaining and/or funding transportation improvements in the city. The remaining five percent levied pursuant to this section shall be relegated for use by the city’s general fund.
C. Definitions.
1. “Cable television business” means a system providing cable service pursuant to a franchise issued by the city under 47 USC § 521, as now enacted or hereafter amended or superseded.
2. “Cable service” means the one-way transmission of video programming and associated nonvideo signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming.
3. Gross Subscriber Revenues.
a. For purposes of this chapter, “gross subscriber revenues” means and includes revenues derived from the supplying of subscription service, including installation fees, disconnect and reconnect fees, fees for regular cable benefits (including the transmission of broadcast signals), and access and origination channels and per-program or per-channel charges.
b. The revenues taxed under this section shall not include leased channel revenue, advertising revenues, or any other income derived from the system that is taxed under Chapter 3.53 ACC.
D. The business of operating or conducting a cable television system (CATV) does not include the provision of interactive two-way communications over cable. Such activities shall be reported under the telecommunication service or telephone business classification. (Ord. 6921 § 2 (Exh. B), 2023; Ord. 6882 § 3, 2022; Ord. 6790 § 1 (Exh. A), 2020; Ord. 6785 § 3, 2020; Ord. 6620 § 2, 2016; Ord. 6170 § 5, 2008.)