HomeMy WebLinkAbout2000 Ordinance No. 046•
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ORDINANCE NO .~
SERIES OF 2000 .
IIY AUTHORITY
COUNeIL BILL NO. 47
INTRQDUCED JIY COUNCIL
MEMBER WOLOSYN
AN ORDINANCE REPEAIJNG TIT..E 4, CHAPTER G, OF THE ENGLEWOOD MUNICIPAL CODE
1985 AND REENACTING A NEW ~.1TLE 4, CHAPTER 5, ENTITLED "ENGLEWOOD BASIC
WCAL EXCHANGE SERVICES B1JSINESS AND OCCUPATION TAX".
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WHEREAS, the Englewood C:ty Council finds that rompanies offering regulated local ei:clianp
services are curre r•l.y subject tt, a busineaa and occupation tax on the buaineaa and occupation of
providing such services to the residents o£ the City of Englewood (hereinafter tha "Cit:J'"), Tbe City
enacted a tax in 1976, and ha, continuously maintained that tax since that dut.; and
WHEREAS, the Englewcod City Council found that when the current section of the City's
busineBB and oc,:upation t.ix was enacted, the busineaaes and occupations •.ued were provided by a
monopoly provider undor state law. However, the proviaion of aervicea by these bU8lllelH1 and
occupations is becollllllg, or baa become rompetitive pursuant to both federal and state law ; and
WHEREAS. the Englewood City Council bu found that The Telecommunications Act of 1996
specifica.lly encourages new entrants to compete in the TelerommunicatioD11 Market. and require•
local ordinance& to be rompetitively neutra: and without barriers to entry; nnd
WHEREAS, the Englewood City Council finds in the future , Baaic Local Exchange Service within
the City may be ofmed by many provider&; and
WHEREAS, the Englawood Cit;:! CoW>Cil finds that the Providera of Basic Local EJ:clianp Semce
operating in the City may be signifaant.ly dilJerent in size, and the City's businelB and occupation
tax should reflect such differences; and
WHEREAS, the Englewood City Council finds the City's busine•s and occupation tax on
Providers of Basic Local Exchange Service should be uniform and non-discriminatory, and should not
crea te barriers to entry for Basic Local E:r.cnange Service Providers in the City; and
WHEREAS, the Englewood City Council finds the husine11 and occupation tax set forth in this
Ordinance rscognizes the potential differences in eize o[ Prov;, .er11 of Basic Local Exchange Services
that may operate within the City , is uniform , non•diacri.Qlills '.ory, 1md does not create barrierd to
entry; and
WHEREAS, the Englewood City Council finds the busineso , _j occupation tax set forth in this
Ordinance is not a new tax, a tax rate increase , an extension of e.o expiring tax, an increase in a
tax, or a tax policy change directly cauaing a net tu revenue gain to the City; and
WHEREAS, the Engluwood City Council find• the business and tax amendments contained in
this Ordinance are non-dJ...criminatory to all Providers of Basic Local Exchange Service because they
are hased upon the number of Lines ear.h rompany provides within the City;
NOW . THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Sil:timl..l. 'foe City Council of the City of Eaclewood, Colorado hereby repeale Title 4, Chapter 5,
and reenacte a new Title 4, Chapter 5, entitled ""Englewood Basic Local Exchange Service■ BuaiJieu
and Occupation Tax" to read u follows :
!;A;!: ENGLEWOOD MG LOCAL EXCHANGE SERVICES
IUSOOjS8 i,,NQ pccuPATION TAX.
'Che tax imnoaed upou pmw,n pwnuant to thia Chapter •~ called and referred tp y the
111,ag1pm,4 BMF I.gl Jhrbppp s,mog Buainw and Occupation Tu lheninaft.ar wit.hip thi ...
Chapter •&YlilMM and Op;upation 'Cuj
H:.Z: DEFINITIONS•
As U§ed ip thia Chaeltr:
BASIC LOCAL EXCHANGE SERVICE :
BASE LINE COUNT:
INCUMBENT PROVIDER:
INHABITANT:
MeaPI "basic local exchange aervice .. or "buic Mrvice"
•»li•njyd by • Certificate of Public Conyppje!!!Y!!li
Npaaitv or otherwiae under Title 40 Article JO
C.Olorado Revised St.atutee BB amended or remdified
~ to time or by regulationa promulgated
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Mun• the total number of Llnea for whjch th ~
l:u;umhtmt Provider providee Ba1ic Local E1d Jf::9P
Service within the City on July 1 2000 .
Meana any company or entity authoriad by the
Public Utilities CommiP.aion State or Qolprado to
provide basic local exchanp M1rvice and prpyiding
such ervice within the City Al of February 8 1996
Mellllll any individual corpomtion partnonhip joint
veotun wmpanv firm aaaociation partperahip or
other entity residing or having a plaL'e of bu..aineH
within the Gitv
Mea:rut a separate telephone number or telephone
circuit identification number p[OV)ded to a cuatgmer
at mt.ail except that to th.c. extent a provirler
provides basic l~nl exchange aeMce throUJh trunka
e line moans a network acceaa repat.er OLiY
nmctionalequivalent provided to a Mtomer pt
,mi.I,
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LINE COUNT:
. EW PROVIDER:
NEW PROVIDER'S INI'l'IAL
LINE COUNT:
PROY)DI.R:
TAX LEVIED:
MPPRI the numklr e( liPII 191d le lnhabitantl et 'e@m t11a welies mcmth k '"51ese1:
usbton INliSP•
Mppp MY SWPPIPY PNY!IPhiR jgipt pntug
~ PJ;qprjptqJhip mdiri4tw qr PPtilY eYw
Mwn \he bisumheot CW4s rM int.on fie hnrim
e(pmviWRI lhis ke1 5rbeor S.P'MI dhie Pl
~ aftar r,wum 8 1996.
Meana 5N number e( linea fpr whicl1 a pg Prpyider
m·ovidap Bpis Log} Ezche re §eM;e witJrin tho City
thirty {3ffi day, after that New Provifllr'e eQistive
date undpr E M C t§-4
Mame gppaex ereetitJ em~v~
§7cbegp 8PO'P thmuM thew e[ita m ¥litin
through ruale or throush anr cpmhination m the
ll[l!.
'.fhv:e Mt levi@d on and apin.et ea e • Jvider operatinJ within tho City a tp on the
oq;matipn and bHfneu of providing Buie Local Exchange Servipe at qtail to Inhabit.ant.a of
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The monthly liability !or auch tA1 ■hall ho thp low of :
~ An amount equal t.g the surqpt aPPual bwineu apd PSSMRtti99 SM ,_:a,nt of
~000 00 divided by 12· er
t 6uf1:euet ,eual to the eer line r< te be caleula¥ in ee;erdeese rith Pmmeh
~bia §eseon multiplied by tho Line Cotwl
The monthly ner lipe rate shall be calculated ORF time by dividing Sl§O 000 00 bv thp Pue
Line CounL the reault of which shall be divided by 12 Such formula can ho reerernteri ae
follows :
<$160 00 00 ... Baae Line Count> ... 12 = per line rate
The City Manager or deeignee ahall communicate by t,,!t:;, Poetal Service ouch calculated line
,rate to all cu:qent Providers not later than August 1 2000 and ahall make ouch rate
available tn nll.Iuture Providm,
~= EFFECID'I PATE / SCHEDULE PF MWENT:
~-For each Pmvidpr the tox levied hY thia Chanter ehall commence on Auguat 1 2000 or pp
the date the P£2Yider Mt am141e BMs Lpql Eubans, Servim within the City 1Jlishmr
ia hllr The 511 ■hall be due and euabla OP the last dav of the month following the
9FSYP1Pfl pf Yvt methlx liabilitv II WIMmllHld bv E M C 4·5·3@ In thr~
Provider'a monthlx liehilitv ia lee than Sl00,00 nuch Provider may file the~
information and max make eevment for the erior three months on the la•t day of the month
following the end of eecb calender quarter (April July October and January) RAtuma sent
bv US Mail ahall be deemed filed en the date of the postmark The Line Count and the
amount of payment bx any individual Provider shall be deemed proprietary information
contained 1ithin a tax return and afforded tht senfidentiolitv associated fom.w.Wi .
~-A New Provider that becomea aubiect to thiB Chapter.,; all determine the nu'!lber oflinea for
the firat mqnt.h ip which Buis lpcal Excheau Service .s offered and shell file :ta Rtatement
with the aeemriate tal 91ym9pt for 1w;h ppripd in aCL •rdance with this Section.
i±li: STATEMENT OF LINES;
~ The Incumbent Provider shall on July l 2000 determ :o~ the total number lipea for whir.b
it then provide@ Basic Local Exchanp Service within the City (the Bose Line Count) and
ehall by Jyly JO 2()()0 file with the Citv Manavr er deeignee a @t.at.pment ehowing its
determined total number of lines Such number eh•ll be utilized fqr initiallv ealeulatipg the
line rate pwsuant to E M C 4·5·3(C)
~. Effective with the first tax payment reauired by Section 4 of thi@ Chaeter each Provider
subject to this Chopter ehall file statement.a with the Citv Manager or dosignee in such form
y the City may require including oatht x,rifietiee• JI' ocknowlc41;monta ■bowing the
Line Count provided to Inhabit.anw for the period fr,c which auch paymeilt..mle.te.a.
~-On July 1 of each calendar year each Provider then subject to thi ■ Chapter shall determine
the total number of lin es for whigh it thep proyidcs Basic Local E1chan1e §cryjce within the
Citv By July 10 of th e same calendar year each such Provider shall file with the City
statement showing its determined total number of lines In addition a New Provider that
Mt bewmea aubiect to this Chapter during anv calendar vear shall thirty (30} daya after
that New Provide::ufi'~tiY!' ~ate under Section 4 determine the n1.lluber of linee for miim.it
provides Basic Loa! Eschonge Seryice within the City (New Provider'" initiol line count) and
s.hall...fikJutaternent of that number within thirty (30) dave after the effective date.
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TAX REPPB'ilP TO RF.8JPINTS·
To the erlent authorized by state statute pod the regulations promulgated tbenunder Pmxideg
may !IPotlYly atato pp olcb Inhabit.ant', bill tho pfODOrtionato ,hare of thp Prpyjdpr'■ liability
impoped pymuant to thia Chapter
~ : FAILURE TO PAY -PENALTY -CITY ACTION TO COLLECT:
If any Provider subie&1 to the proviRiona of this Chapter faila to pay the taxes u prpvidcd in Seeioo
5 the full amount thagqf tppther with a penalty of ten percent l10%l of the amount of typp
unpaid and interest awuing end sempounded at a monthly rate of one :e,roent (1%) ahall bemp.e
a debt duo and owing from such Provi4m; to the City The City Attorney upgo diNctipp e[the City
Coupcil ,hall crmmepce and eroaecute to final judgment and determination in gny court of
comp eten t iuriadictiee an actio1 ~ law w wlltet ~
H:J!: INSPECTION OF RECQRDS:
Tu.mlom.Jhis Chapter the Citv and ita officen arenta or repreeentativea aha.ll have the righL at
all rea90nable heug &Pd tunes to ex.amin, and SPRY the book, and recorde e( every Provider gubject
t.o this Chanter §ush remrda shall be retained by the Citv for audit and enforcement PWP981 onlx
Tbeee [Cq>rda shell be truted OR mnfident.ial by the City and shall not he diaclQICd tn any other
party except under a court order or in oonnection with enforcement of tbit Chapter
~: TAX IN LIEU OP CERTAIN OTHER CONSIDERATION:
The busineu and occµpatipn tax levied puquent to this Chanter iA ip lieu of all other occupation
taxes oppoaed uppg anv Provider subject tn thia Chapter It ie in edditipn to anv othorwig
applicable ad valorem •.axes end other taxea and fm, It is in lieu of any "hf eervicea furniegd to
the Citv by ony Provider
H-IQ: STATUTE OF LIMJTATIW!S:
E1cept as prpyjded in this Section or unless such time is extended by waiyer the amount of
tnx levied by this Chapter toyether with interest th ereon and penaltiea with reapect
thereto shall not be assessed or suit for collection be instituted or any other action to
co llect the same be commenced more than three veers after the date on which the tax w-i,
or ia payable .
In cnae pf a false or fraudulent return with intent to evade tax the tax together with
interest and penalties thereon may be assessed or proceedinp for the collection of such
taxes may be begun at nny time .
Before the 11eimtian of eusb petjpd e( limit.Btien the taxpayer and the City max ap in
writins se an extppaion hemf aed the e,ripd ee ems4 en mex 81 tlMP(dml by eufflaypgt
amementa iq writing
~-Safety Gl•YH• The City Cowic:il. hlreby finclo , determines, and declana that thia
Ordi"•.nce ia promulgated •tnde r the general police power of the City oi En1l1wood, that it is
promulgated for the health, safety, and welfare of the public, and that Ilia Ordinance ia nea,uary
for the preservation of health and aafety and for the protac•~on of public cxmvenience ,and weJlare.
Th e City Council further determines that the Ordinan-:., bears a rational relation to the proper
legislative obj ect sought to be obtained.
~-All offenses committed. and all tax liabilities incurred before the effective date of this
Ordinance, under prior versions of the Utilities Companies Tax shall be and remain unconditionally
due and payable. shall constitute a debt to the City and shall be treated as though all prior
appli ca ble Ordinances and am en dm enta thereto were in full force and effect.
~-The City shall notify all Providers within sixty (60) days of paaeaga o,• amendment of
thia Ordinance of the need for submiaaion of the information required by thie Chapter. Such
notification shall be made by uS P01tal Service and shall state a specific request for such
information setting forth the desired format, if any, to be determined by the City. Copies of the
Ordinance shall be eupplied to all Providers upon written requeet.
~-$evenhjlity If any cwuse, sentence, paragraph, or part of this Ordinance or the
application thereof '.o any person or circumatancea shall for any reaaon be acijudged by a court al
competent jurisdiction invalid, auchjudgment ahrul not affect impair or invalidate the remainder of
this Ordinance or ite application to other peroons or circumstances.
~ IPOOPffiRtent OrdinanceR All other Ordinances or portions thereof inconaiatent or
conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of ouch
inconsisttmcy or conflict.
~ Effect gf repeal or modifica.tion The repeal or modification of any provision al. the
Code of the City of Englewood by this Ordinance ahall not release, ..xtinguiah, alter, modify, er
change in whole or in part any penalty, forfeiture, or liability, eitb•· wil or criminal, which shall
have been inciared under such pro\'ision, and each provis ion ail.ti ~ treated and held ae still
remaining in forc e for the purp oses of sustaining any and all prop~r ... ~ .Jns, suits, proce edings , and
pro sec utions for the enforcement of the penalty, forfeiture , or liability, as well as for the purpoee of
s ustaining any judgment , dP cree, or order whi ch can or may be rendered , entered, or made in such
ac tions , s uits, proceedings , or prosecutions.
~-~-The Penalty Provision of E.M.C. Section 1-4•1 ehall apply to each and every
violation of tl:us Ordinance.
lntroduc,d, read in fa U. and passed on first reading on the 15th day of May, 2000.
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Publiahed u a Bill for an Ordinance on the 19th day of May, 2000.
A Public Hearins wu held on June 6, 2000.
Read by title and paaed on final reading on the 26th day of June, 2000.
Publiahed by title ae Ordinance No . ~ Seriee of 2000, on the 30th day of June, 2000.
~¼-d.0o ~ City Clerk
~d ◄◄< Om~urna, Mayor
I, Low:r'•hia A. Ellia, City Clerk of the City of Englewood, Colorado, hereby certify that the above
and fore., .ng ~)',true copy of the Onlinancc puaed on final rea · and published by title ae
Ordinance No.~ Seri .. of 2000,
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COUNCIL COMMUNICATIOI~
Date
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Agenda Item Subfect
May 15, 2000 11 aiil BIii for an ordinance updating
the, Cit-i's occuoaUonaJ tax
Initiated By Staff Source
City of Englewood, Administrative Services Frank Gryglewicz, Director
Deoartment
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council has discussed various telecommunlcatlon issues at bJth study sessions and regular
meetings .
R!:COMMENDED ACTION
Staff recommends the City Council approve the attached bill for an ordinance .
BACKGROUND , ANALYSIS, AND ALTERNATIVES IDENTIFlED
When the existing business and occupation tax was enacted, the businesses and occupations taxed
under the section were provided by a monopoly under the state law. Due to changes In the Industry
there is no longer only one provider of these services .
This bill for an ordinance removes balliers to entry for telecommunications service providers In the
City of Englewood by levying a tax on each line provided Instead of levying a flat tax. This change
allows the City to maintain its tax bar;e wh ile encouraging competiUon as required by the
Telecommu ni cations Act of 1996.
This change is in compliance with the provisions of the Taxpayers Bill of Rights because the change
does not Increase net revenues the City collects .
No alternatives were identified .
FINANCIAL IMPACT
This nc tion has no impact on the amount of total occupational tax collected , it only chan 1Jes how the
taxes are app ortioned from a flat tax to a tax on indiv idual ph one lines.
UST OF ATTACHMENTS
Proposed bill for an ordinance