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Sec. 35-155. Telephone users tax.
<br />(a) There is hereby imposed a tax upon every person in the city using telecommunication services. The tax
<br />imposed by this Section shall be at the rate of five and one-half (5%) percent of the charges made for such
<br />services and shall be collected from the service user by the telecommunication services supplier or its billing
<br />agent. There is a rebuttable presumption that telecommunication services, which are billed to a billing or
<br />service address in the city, are used, in whole or in part, within the city's boundaries, and such services are
<br />subject to taxation under this section. There is also a rebuttable presumption that prepaid
<br />telecommunication services sold within the city are used, in whole or in part, within the city and are
<br />therefore subject to taxation under this section. If the billing address of the service user is different from the
<br />service address, the service address of the service user shall be used for purposes of imposing the tax. As
<br />used in this section, the term "charges" shall include the value of any other services, credits, property of
<br />every kind or nature, or other consideration provided by the service user in exchange for the
<br />telecommunication services.
<br />(b) "Mobile telecommunications service" shall be sourced in accordance with the sourcing rules set forth in the
<br />Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The tax administrator may issue and
<br />disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of
<br />this article, sourcing rules for the taxation of other telecommunication services, including but not limited to
<br />post-paid telecommunication services, prepaid telecommunication services, VoIP, and private
<br />communication services, provided that such rules are based upon custom and common practice that further
<br />administrative efficiency and minimize multi jurisdictional taxation (e.g., streamlined sales and use tax
<br />agreement).
<br />(c) The tax administrator may issue and disseminate to telecommunication service suppliers, which are subject
<br />to the tax collection requirements of this article, an administrative ruling identifying those
<br />telecommunication services, or charges therefore, that are subject to or not subject to the tax of subsection
<br />(a) above.
<br />(d) To prevent actual multi jurisdictional taxation of telecommunication services subject to tax under this
<br />section, any service user, upon proof to the tax administrator that the service user has previously paid the
<br />same tax in another state or city on such telecommunication services, shall be allowed a credit against the
<br />tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided,
<br />however, the amount of credit shall not exceed the tax owed to the city under this section.
<br />(e) The tax on telecommunication services imposed by this section shall be collected from the service user by
<br />the service supplier. The amount of tax collected in one (1) month shall be remitted to the tax administrator,
<br />and must be received by the tax administrator on or before the 20th day of the following month.
<br />(Ord. No. NS-2436, § 2, 8-4-00; Ord. No. 2721, § 3, 8-7-06; Ord. No. NS-2723, § 3, 8-7-06; Ord. No. NS-2860, § 4, 12-
<br />9-14 )
<br />Sec. 35-155.1. Bundling taxable items.
<br />If any nontaxable charges are combined with and not separately stated from taxable service charges on the
<br />customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier
<br />identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and
<br />taxable through the service supplier's books and records kept in the regular course of business, and in accordance
<br />with generally accepted accounting principles, and not created and maintained for tax purposes. If the service
<br />supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for
<br />taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and
<br />records kept in the regular course of business and in accordance with generally accepted accounting principles,
<br />City PiNPPAIRgil RFP No. 23-%-5 193 PaN@/196
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