[Ord. 454, 12/11/1996; as amended by Ord. 656, 4/9/2015]
This Part shall be known and may be cited as the "Video Programming
Municipal Tax Authorization Ordinance." The purpose of this Part is
to impose a video programming tax as authorized by the Video Programming
Municipal Tax Authorization Act, 72 P.S. § 6171 et seq.,
effective September 6, 1995.
[Ord. 454, 12/11/1996; as amended by Ord. 656, 4/9/2015]
The following words and phrases, when used in this Part, shall
have the meanings given to them in this section unless the context
clearly indicates otherwise.
Any person or group of persons who provides cable service
over a cable system and directly or through one or more affiliates
owns an interest in such cable system or who otherwise controls or
is responsible for, through any arrangement, the management and operation
of a cable system. The term does not include a provider of wireless
or direct-to-home satellite transmission service.
The transmission, distribution or broadcasting of video programming
or services by satellite directly to subscribers' premises without
the use of ground receiving or distribution equipment, except at the
site of the subscribers or in the uplink process to the satellite.
The amount charged for or received by video programmers from
sales of video programming and related charges for bad check and late
payment charges, installation, connection, additional outlets, repair
services, digital audio services, radio services, programming guides
and equipment rental services upon which the local cable television
operator pays a franchise fee, the amount charged for or received
by common carriers from sales of access to video programming, and
related charges for bad check and late payment charges, installation,
connection, additional outlets, repair services, digital audio services,
radio services, programming guides and equipment rental services upon
which the local cable television operator pays a franchise fee, and
the amount charged for or received by persons from sales of access
to video programming by any means of transmission, other than wireless
or direct-to-home satellite transmission, directly to subscribers
with service addresses in the Township. Gross receipts shall not include:
Amounts charged for or received by persons from sales of telephone
access or service that entitles the subscriber to the privilege of
interactive telephonic quality telecommunications with substantially
all persons having telephone or radio telephone stations constituting
a part of a particular system or in a specified area;
Any revenues received by persons providing access to video programming
from video programmers for the transport of video programming to a
subscriber's premises or access to the video dial tone network:
The tax imposed under this Part if the tax is shown as a separate
line charge to subscribers;
Any other taxes, fees or surcharges on services furnished by
persons providing access to video programming or video programmers
which are imposed on subscribers by the Commonwealth or County pursuant
to statute, ordinance, resolution or regulation and which are collected
on behalf of the governmental unit by the provider of the services;
Any portion of a debt related to the sale of video programming
or the sale of access to a video network, the gross charges for which
are not otherwise deductible or excludable, that have become worthless
or uncollectible, as determined under applicable federal income tax
standards. If the portion of the debt deemed to be bad is subsequently
paid, the video programmers or person shall report and pay the excise
tax on that portion during the reporting period in which the payment
is made;
Amounts received from retail sales of tangible personal property
that provides access to video programming;
Amounts charged for or received by persons from sales of video
programming which is delivered to subscribers through a Satellite
Master Antenna Television (SMATV) System; and
Amounts received by a common carrier from persons for related
charges for bad check and late payment charges, installation, connection,
additional outlets, repair services, digital audio services, radio
services, programming guides and equipment rental services that are
resold by such persons to the ultimate consumer.
An individual, partnership, association, joint-stock company,
trust, corporation, government entity, limited liability company or
any other entity.
The ultimate consumer of the video programming provided by
video programmers over any means of transmission, other than wireless
or direct-to-home satellite transmission. The term does not include
a video programmer that purchases a video dial tone transport service
to provide video programming over a video dial tone system.
A common-carrier service for the transport of video programming
to subscribers.
An individual, partnership, association, joint-stock company,
trust, corporation, governmental entity, limited liability company
or any other entity that provides video programming to subscribers.
Video or information programming, whether in digital or analog
format, that is provided by a cable operator or generally considered
comparable to programming provided by a cable television operator
and upon which such cable television operator pays a franchise fee.
Video programming does not include on-line, interactive information
services to the extent that access to such services is accomplished
via a dial-up or private telephone line or via wireless or direct-to-home
satellite transmission.
The distribution of video programming using radio communications
including, but not limited to, terrestrial-based radio systems.
[Ord. 454, 12/11/1996; as amended by Ord. 656, 4/9/2015]
1.Â
A video programming tax is hereby imposed on and from, respectively,
any person who sells video programming to subscribers who are located
within the Township by any means of transmission, other than wireless
or direct-to-home satellite transmission, or who provides such subscribers
with access to video programming by any means of transmission, other
than wireless or direct-to-home satellite transmission, and who is
not otherwise subject to federally authorized or permitted local fees
or taxes on the gross receipts received from the provision of cable
television service or video programming services to customers in the
Township. This tax shall be imposed on persons engaging in any commercial
activity in this Township or employing capital in this Township or
owning, leasing or utilizing property in this Township or maintaining
an office in this Township, or having employees in this Township for
all or any part of any calendar year, to the full extent permitted
by the Constitution of the United States. The tax hereby imposed is
imposed only on the gross receipts of such persons from sales of video
programming or sales of access to video programming directly to subscribers
who are located within this Township.
2.Â
Tax Rate. The tax rate under this Part shall be the franchise fee
rate imposed by the local cable ordinance of the Township or, if the
current ordinance and franchise fee is repealed or if no local cable
ordinance otherwise exists, the rate set in the agreement between
the local cable television operator and the Township. In no event
shall the rate imposed under this Part exceed 5%.
3.Â
Calculation of Tax. The tax authorized in this Part shall be determined by multiplying the tax rate as set forth in either Subsection 2 or 7 of this section, as applicable, by the gross receipts of video programmers from sales of video programming or of persons from sales of access to video programming, of common carriers from sales of access to video programming, by any means of transmission, other than wireless or direct-to-home satellite transmission, directly to subscribers who are located in the Township.
4.Â
Election. Any person subject to tax under this Part may elect at
any time to pass through to subscribers as a separate itemized line
charge on the subscriber's bill the tax imposed under this Part.
5.Â
Penalty. A penalty of an amount equal to 10% of the taxes due, including
all delinquent taxes due under this Part, shall be added to the tax
levied under this Part for failure to pay the tax by the quarterly
due dates set forth in this section.
6.Â
Alternate Rate. If or when no cable television operator provides cable service within the limits of this Township, the tax to be collected from persons subject to tax under this Part shall be an amount not to exceed 5%. In the event that a cable operator shall thereafter provide cable service within the limits of this Township, the tax rate set under this Part shall be adjusted under Subsection 2.
7.Â
Due Dates. The tax imposed under this Part shall be paid to the Township
by each person quarterly on or before April 30, July 31, October 31
and January 31 and shall be calculated based on the gross receipts
of each person during the three months prior to the month of payment.
Any payment of a tax shall be considered as timely made if the payment
received by the Township is postmarked by the United States Postal
Service on or prior to the final day on which payment is to be received.
[Ord. 454, 12/11/1996; as amended by Ord. 656, 4/9/2015]
Gross receipts, as defined in this Part and subject to the tax
imposed by this Part, as well as any revenues received by a person
providing access to video programming from video programmers for the
transport of video programming to a subscriber's premises or
from video programmers for access to the video dial tone network,
shall not be subject to any tax under:
A.Â
Article XI of the Act of March 4, 1971 (P.L. 6, No. 2), known as
the "Tax Reform Code of 1971," 72 P.S. § 8101 et seq.
B.Â
The Act of December 31, 1965 (P.L. 1257, No. 511), known as the "Local
Tax Enabling Act," 53 P.S. § 6924.101 et seq., or any other
local tax or fee imposed on the receipts of persons providing video
programming or access to video programming to subscribers who are
located within the Township, except that the gross receipts of video
programmers shall be subject to tax under the local business privilege
tax in this Township if and when such a tax is imposed and where the
local cable television operator pays a local business privilege tax
pursuant to the Local Tax Enabling Act, 53 P.S. § 6924.101
et seq.
[Ord. 454, 12/11/1996; as amended by Ord. 656, 4/9/2015]
1.Â
Credit for Interstate Transactions. Any person subject to the tax
imposed under this Part shall be entitled to a credit against the
tax imposed by this Part equal in amount to any similar tax on gross
receipts, other than a generally applicable sales or use tax or corporate
income tax, that the person has paid to another state or government
entity thereof under a lawful requirement of such state or government
entity on sales by the person of the same video programming or sales
of access to such video programming to subscribers located within
this Township.
2.Â
Credit for Taxes Paid under Any Franchise or Similar Fees. Any person
subject to the tax imposed under this Part shall be entitled to a
credit against the tax imposed by this Part equal in amount to any
fees on gross receipts that the person has paid under any franchise
fee or similar fee authorized or permitted by federal, state or local
law or imposed by ordinance in this Township or agreed to pursuant
to a written franchise agreement between the person and this Township,
with respect to any revenues received by a person or video programmer
from subscribers for access to the person's video network or
for video programming or from video programmers for the transport
of video programming to a subscriber's premises or for access
to a video network.
[Ord. 454, 12/11/1996; as amended by Ord. 656, 4/9/2015]
1.Â
Procedures. A person may be audited by this Township; provided, however,
that any dispute or controversy that results from such audit or imposition
of tax under this Part shall be contested and resolved in accordance
with a uniform set of procedures, rules and regulations that shall
be promulgated by the Department of Revenue. The Township shall provide
the video programmers and persons providing access to video programming
with:
A.Â
The rate that is lawfully imposed by the Township under this Part.
B.Â
A list of the "zip plus 4's" or a comparable list of addresses
located in the Township which will enable persons to identify the
subscribers located in the Township.
C.Â
A copy of this Part and any amendments thereto within 30 days after
enactment.
2.Â
Enforcement. The Township Manager shall enforce this Part in accordance
with the Video Programming Municipal Tax Authorization Act, 72 P.S.
§ 6171 et seq.
[Ord. 454, 12/11/1996; as added by Ord. 656, 4/9/2015]
Any person, firm, or corporation who shall violate any provision
of this Part, or fails to comply therewith, or with any of the requirements
thereof, upon being found liable therefor in a civil enforcement proceeding
commenced by the Township, shall pay a judgment of not less than $100
nor more than $600 plus costs, including reasonable attorney fees
incurred by the Township. A separate offense shall arise for each
day or portion thereof in which a violation of this Part is found
to exist and for each section of this Part found to have been violated.
The Township may also commence appropriate actions in equity or other
to prevent, restrain, correct, enjoin, or abate violations of this
Part. All penalties collected for violations of this Part shall be
paid to the Township Treasurer. The initial determination of ordinance
violation and the service of any required notice of violation is hereby
delegated to the Township Manager, the Police Department, the Tax
Collector, the authorized designee of the Township Manager, and to
any other officer or agent that the Township Manager or the Board
of Supervisors shall deem appropriate.
