O-91-2551 - 9/12/1991ORDINANCE NO.
AN ORDINANCE AMENDING SECTION 1.1200 CODE OF ORDINANCES, 1990
EDITION, CITY OF ROUND ROCK, TEXAS TO ADD SUBSECTION 1.1204
RELATING TO TAXATION OF TELECOMMUNICATION SERVICES; PROVIDING
FOR AN EFFECTIVE DATE; PROVIDING FOR A SAVINGS CLAUSE AND
REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS:
I.
That Section 1.1200 Code of Ordinances, 1990 Edition, City of Round
Rock, Texas is hereby amended by adding a new subsection 1.1204 which
shall read as follows:
1.1204 Taxation of Telecommunication Services
(1) A sales and use tax is hereby authorized on all
telecommunication services sold within the City of Round
Rock, Texas. For the purposes of this section, the sale
of tele -communication services is consummated at the
location of the telephone or other telecommunications
device from which the call or other communication
originates. If the point of origin cannot be determined,
the sale is consummated at the address to which the call
or other communication is billed.
(2) The rate of the tax imposed by this section shall be the
same as the rate imposed by the City for all other local
Sales and Use Taxes as authorized by the legislature of
the State of Texas.
II.
A. The City Secretary shall forward to the Comptroller of the
State of Texas by United States Registered Mail a copy of this ordinance
along with a copy of the minutes of the City Council vote and discussion
on this ordinance.
B. The effective date of this ordinance is January 1, 1992.
C. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
D. The invalidity of any section or provision of this ordinance
shall not invalidate other sections or provisions thereof.
OR09121C
READ and APPROVED on first reading this the _
A-Jq&TY) , 1991.
READ, APPROVED and ADOPTED on second reading this the
, 1991.
ATTEST:
JOjkE LAND, City ecretary
;�� 1�a
MIKE ROBINSON, Mayor
City of Round Rock, Texas
2.
�1)
day of
day of
RX 14 M IT A
TAXABLE SERVICES
AND CHARGES
• long-distance telephone calls M
• telegraph service (*)
• basic local exchange service
• call waiting
• call forwarding
• paging services
• coin-operated telephone service
• mobile telephone service
• facsimile (FAX) service
• equipment which is sold or rented to the
customer
• installation and service connection fees
• other enhanced services
(*) NOTE --Interstate long distance tele-
phone and telegraph service is not
subject to local sales tax.
NON-TAXABLE SERVICES
AND CHARGES
• telecommunications services purchased
for resale
• calls that originate outside Texas
• telegraph service that originates
outside Texas ,
t.x 14 11s 1T B "
Cities imposing the local sales tar on telecommunications
services:
Abilene
Addison
Alcdo
.Vice
Alpine
Amarillo
Ames
Andrews
Angleton
Angus
Annetta North
Annetta South
Anchonv
Arlington
Athens
Aubrey
Austin
Balcones Heights
Bangs
Bartlett
Bartonvillc
Bay City
Beaumont
Bedford
Belton
Bcnavidcs
Benbrook
Big Spring
Blue Mound
Borger
Bovd
Breckenridge
Bronte
Brookshire
Brownwood
Bnan
Buckingham
Burkburnett
Burleson
Cameron
Canadian
Canyon
Carrizo Springs
Castle Hills
Cedar Hill
Cedar Park
Celeste
Center
Chandler
Childress
China
Cibolo
Cisco
Clarendon
Claude
Cleburne
Cleveland
Clint
Coldspring
Colmcsneil
Colorado City
Conroe
Converse
Copper Canyon
Copperas Cove
Corpus Christi
Corrigan
Corsicana
Crane
Crosbyton
Crowley
Crystal Beach
Cumby
Daingerfield
Dalhan;
Dallas
Daiworthington Gdns.
Decatur
Deer Park
Denton
DeSoto
Devine
Dickinson
Double Oak
Driscoll
Duncanville
Eagle Pass
East Mountain
Eden
Edgccliff Village
Edinburg
El Campo
E1 Paso
Eldorado
Electra
Elgin
Euless
Everman
Farmers Branch
Farmmville
Fare
Flowcr"Alound
Floydada
Forest iiill
Fort Stockton
Fort Worth
Fredericksburg
Freeport
Gainesville
Ganado
Garland
Georgetown
George West
Glen Rose
Goliad
Gonzales
Gordon (Palo Pinto Co.)
Grand Prairie
Grapevine
Gregory
Groesbeck
Groom
Groves
Gruver
Hale Center
Hallsburg
Haltom City
Hamilton
Happy
Haskell
Hasict
Heath
Highland Park
Hollywood Park
Houston
Hubbard
Hudson
Hudson Oaks
Hunters Creek Vil
Huntsville
Hurst
Hutchins
Ingleside
Iowa Park
Jacksonville
Jersey Village
Jonestown
Joshua
jourdanton
Karnes City
Katy
Kaufman
Keller
Kcmah
Kcncdy
Kercns
Kermit
Kilgore
Killeen
Knox City
Kyle
La Fcria
Lake Dallas
Lake Worth Village
Lakeside
Lancaster
Laredo
Leon Valley
Lcvclland
Lewisville
Ubcrry
Iicticftcld
Llano
Lockhart
Lockney
Longview
Lubbock
Manor •
Mansfield
Marble Falls
Marfa
Marshall
Mason
Mathis
McAllen
McCamey
McKinney
McLean
Memphis
Mercedes
Mesquite
Mexia
Midland
Mineral Wells
Mingus
Mission
Missouri City
htonahans
Morton
Mount Pleasant
Mount Vernon
Muleshoe
Munday
Mustang
t J %
Lx 14 l ft )T B
Cities imposing tlic local sales tax on telecommunications
Nca• Berlin
Pondcr
Sansom Park
Three Rivers
�cw Summerfield
Port Arthur
Seabrook
Tye
Monte
Port Isabel
Seminole.
Tylcr
North Richland dills
Port Neches
Seven Points
University Park
Oak Ridge
Prairie View
Seymour
Vernon
Oak Ridge North
Princeton
Shamrock
Victoria
Odcm
Progreso lakes
Sinton
Vidor
Odessa
Olney
Quinlan
Skelltitown
Village of Lakc%vay-
Orange
falls
Ranger
Slaton
Smithville
Waco
Orchard
Rankin (Upton Co.)
Snyder
Waxahachie
Weatherford
Overton
Palestine
River Oaks
Sonora
Webster
Palmer
Roanoke
Robert Lce
Sour lake
Weslaco
Pam a
P
Roby
Spearman
W University Place
Panhandle
Rockport
Stamford
Stanton
Wharton
P2mego
Roc" -all
Stinnett
White Settlement
Paris
Roscoe
Strawn
Wichita balls
Pasadena
Pearland
Rotan
Sulphur Springs
Willow Park
Wills Point
Pearsall
Rowlett
Royse City
Sundown
Sunset
Wink
Pharr
Runaway Ba y
Vallcv
Sweeney
Winnsboro
Pinehurst (orange Co.)
Rusk
Sweetwater
Winters
Wolfforth
Piracy Point Village
Saginaw
Tatum �
Woodville
Plainview
San Antonio
Taylor
Plano
San Diego
Terrell
Point Comfort
San Marcos
Texarkana
I
Effective April 1, 1989, 5 -additional cities and 1 county will
begin to impose local sales tax on telecommunications services.
These include:
Bailey County
Brownsville
Galveston
San Juan
Temple
Trophy Club
There will be no additional transit authorities imposing local tax
at this time.
DATE: September 24, 1991
SUBJECT: City Council Meeting, September 24, 1991
ITEM: 8.C. Consider an ordinance on Telecommunication
Tax. (Second Reading)
STAFF
RESOURCE PERSON: David Kautz
STAFF
RECOMMENDATION:
In order to provide the level of service outlined under the
proposed operating budget it is necessary to expand the City's
sales taxable base to include telecommunications services. If
implemented, the Telecommunications Sales Tax would levy a local
sales tax of 1 1/2 percent to basic local exchange service, intra
state long distance service and certain other telephone services.
Round Rock is one of a ver.y....,._,few cities in Texas which does not
currently include telecommunications in its sales tax base. For
the City to operate at the same economic advantage as other
communities and to produce much needed revenue the implementation
of this item is proposed.
The telecommunications sales tax, if implemented, would be
required by law to partially reduce property taxes in the amount
of revenue generated by the 1/2 percent component.