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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 C. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed.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.