[HISTORY: Adopted by the City Council of the City of El Paso 10-6-2014 by Ord. No. 957 (§ 13.18 of the 1979 Code). Amendments noted where applicable.]
GENERAL REFERENCES
Taxation — See Ch. 265.
As used in this chapter, the following terms shall have the
meanings indicated:
That term as defined in 47 U.S.C. § 522(6).
The Illinois Commerce Commission.
All consideration of any kind or nature, including, without
limitation, cash, credits, property, and in-kind contributions received
by the holder for the operation of a cable or video system to provide
cable service or video service within the holder's cable service
or video service area within the City of El Paso.
Gross revenues shall include the following:
Recurring charges for cable or video service.
Event-based charges for cable service or video service, including,
but not limited to, pay-per-view and video-on-demand charges.
Rental of set-top boxes and other cable service or video service
equipment.
Service charges related to the provision of cable service or
video.
Service charges related to the provision of cable service or
video service, including but not limited to activation, installation,
and repair charges.
Administrative charges related to the provision of cable service
or video service, including but not limited to service order and service
termination charges.
Late payment fees or charges, insufficient funds check charges,
and other charges assessed to recover the costs of collecting delinquent
payments.
A pro-rata portion of all revenue derived by the holder or its
affiliates pursuant to compensation arrangements for advertising or
for promotion or exhibition of any products or services derived from
the operation of the holder's network to provide cable service
or video service within the City of El Paso. The allocation shall
be based on the number of subscribers in the City of El Paso divided
by the total number of subscribers in relation to the relevant regional
or national compensation arrangement.
Compensation received by the holder that is derived from the operation of the holder's network to provide cable service or video service with respect to commissions that are received by the holder as compensation for promotion or exhibition of any products or services on the holder's network, such as a "home shopping" or similar channel, subject to Subsection A(10).
In the case of a cable service or video service that is bundled
or integrated functionally with other services, capabilities, or applications,
the portion of the holder's revenue attributable to the other
services, capabilities, or applications shall be included in the gross
revenue unless the holder can reasonably identify the division or
exclusion of the revenue from its books and records that are kept
in the regular course of business.
The service provider fee permitted by 220 ILCS 5/21-801(b).
Gross revenues do not include any of the following:
Revenues not actually received, even if billed, such as bad
debt, subject to 220 ILCS 5/21-801(c)(1)(vi).
Refunds, discounts, or other price adjustments that reduce the
amount of gross revenues received by the holder of the state-issued
authorization to the extent the refund, rebate, credit, or discount
is attributable to cable service or video service.
Regardless of whether the services are bundled, packaged, or
functionally integrated with cable service or video service, any revenues
received from services not classified as cable service or video service,
including, without limitation, revenue received from telecommunication
services, information services, or the provision of directory or Internet
advertising, including yellow pages, white pages, banner advertisement,
and electronic publishing or any other revenues attributed by the
holder to noncable service or nonvideo service in accordance with
the holder's books and records and records kept in the regular
course of business and any applicable laws, rules, regulations, standards,
or orders.
The sale of cable services or video services for resale in which
the purchaser is required to collect the service provider fee from
the purchaser's subscribers to the extent the purchaser certifies
in writing that it will resell the service within the City of El Paso
and pay the fee permitted by 220 ILCS 5/21-801(b) with respect to
the service.
Any tax or fee of general applicability imposed upon the subscribers
or the transaction by a city, state, federal, or any other governmental
entity and collected by the holder of the state-issued authorization
and required to be remitted to the taxing entity, including sales
and use taxes.
Security deposits collected from subscribers.
Amounts paid by subscribers to "home shopping" or similar vendors
for merchandise sold through any home shopping channel offered as
part of the cable service or video service.
Revenue of an affiliate of a holder shall be included in the
calculation of gross revenues to the extent the treatment of the revenue
as revenue of the affiliate rather than the holder has the effect
of evading the payment of the fee permitted by 220 ILCS 5/21-801(b)
which would otherwise be paid by the cable service or video service.
A person or entity that has received authorization to offer
or provide cable or video service from the Commission pursuant to
220 ILCS 5/21-401.
The provision of cable service or video service to subscribers
and the interaction of subscribers with the person or entity that
has received authorization to offer or provide cable or video service
from the Commission pursuant to 220 ILCS 5/21-401.
The amount paid under this chapter and 220 ILCS 5/21-801
by the holder to the City of El Paso for the service areas within
its territorial jurisdiction.
Video programming and subscriber interaction, if any, that
is required for the selection or use of such video programming services,
and which is provided through wireline facilities located at least
in part in the public right-of-way without regard to delivery technology,
including Internet protocol technology. This definition does not include
any video programming provided by a commercial mobile service provider
defined in 47 U.S.C. § 332(d) or any video programming provided
solely as part of, and via, service that enables users to access content,
information, electronic mail, or other services offered over the public
Internet.
A.
Fee imposed. A fee is hereby imposed on any holder providing cable
service or video service in the City of El Paso.
B.
Amount of fee. The amount of the fee imposed hereby shall be 3% of
the holder's gross revenues.
[Amended 6-6-2016 by Ord.
No. 984]
C.
Notice to the City of El Paso. The holder shall notify the City of
El Paso at least 10 days prior to the date on which the holder begins
to offer cable service or video service in the City of El Paso.
D.
Holder's liability. The holder shall be liable for and pay the
service provider fee to the City of El Paso. The holder's liability
for the fee shall commence on the first day of the calendar month
following 30 days after receipt of the ordinance adopting this chapter
by the holder. The ordinance adopting this chapter shall be sent by
mail, postage prepaid, to the address listed on the holder's
application notice sent pursuant to 220 ILCS 5/21-401(b)(6) to the
City of El Paso.
E.
Payment date. The payment of the service provider fee shall be due
on a quarterly basis, 45 days after the close of the calendar quarter.
If mailed, the fee is considered paid on the date it is postmarked.
Each payment shall include a statement explaining the basis for the
calculation of the fee.
F.
Exemption. The fee hereby imposed does not apply to existing cable
service or video service providers that have an existing franchise
agreement with the City of El Paso in which a fee is paid.
All determinations and calculations under this chapter shall
be made pursuant to generally accepted accounting principles.
Nothing contained in this chapter shall be construed to exempt
a holder from any tax that is or may later be imposed by the City
of El Paso, including any tax that is or may later be required to
be paid by or through the holder with respect to cable service or
video service. A state-issued authorization shall not affect any requirement
of the holder with respect to payment of the City of El Paso's
simplified municipal telecommunications tax or any other tax as it
applies to any telephone service provided by the holder. A state-issued
authorization shall not affect any requirement of the holder with
respect to payment of the local unit of government's 911 or E911
fees, taxes or charges.
A.
Audit requirement. The City of El Paso will notify the holder of
the requirements it imposes on other cable service or video service
providers to submit to an audit of its books and records. The holder
shall comply with the same requirements the City of El Paso imposes
on other cable service or video service providers in its jurisdiction
to audit the holder's books and records and to recompute any
amounts determined to be payable under the requirements of the City
of El Paso. If all local franchises between the City of El Paso and
cable operator terminate, the audit requirements shall be those adopted
by the City of El Paso pursuant to the Local Government Taxpayers'
Bill of Rights Act (50 ILCS 45/1 et seq.). No acceptance of amounts
remitted should be construed as an accord that the amounts are correct.
B.
Additional payments. Any additional amount due after an audit shall
be paid within 30 days after the municipality's submission of
an invoice for the sum.
All fees due and payments which are past due shall be governed
by ordinances adopted by this municipality pursuant to the Local Government
Taxpayers' Bill of Rights Act (50 ILCS 45/1 et seq.).
