HomeMy WebLinkAbout2004-082 Cable Television Rates ORDINANCE NO. 2004- 82
AN ORDINANCE relating to the license fees or taxes upon persons in the business of
furnishing cable television service; increasing the license fee or tax
levied upon persons providing cable television services from five
percent (5 %) to six percent (6 %); amending Section 5.50.065 of
Chapter 5.50 the City of Yakima Municipal Code to reflect said
license fee and tax increase; and providing for related matters.
WHEREAS, the City of Yakima ( "City ") is authorized to impose a license fee or
tax, in addition to franchise fees, on persons engaged in the business of furnishing cable
television; and
WHEREAS, the City Council has previously established a license or tax on
persons engaged in the business of furnishing cable television service through the
enactment of section 5.50.065 of the Yakima Municipal Code ( "YMC"); and
WHEREAS, the City Council finds and determines that it is necessary and
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advisable to adopt measures raising such license fee or tax imposed upon persons
engaged in.1i the business of furnishing cable television service by in order to support
increasing maintenance costs and capital needs of the Capitol Theatre and to provide
for other needs of the City; and
WHEREAS, the City Council finds and determines that the license fees or taxes
set forth m this ordinance are not unduly discriminatory against cable operators or
cable subscribers in light of the rates of license fees or taxes imposed on persons
engaged it the utility businesses of providing water, telephone, gas and electric
services; and
WHEREAS, the City Council finds and determines that adoption of this
ordinance is in the public interest; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Section 5.50.065 of Chapter 5.50 of the Yakima Municipal Code is
hereby amended to read as follows:
"5.50.065 Cable television business -- Annual fee.
A. There shall be levied and shall be collected as an annual license fee or
tax 'a: ainst . ersons on account of business activities in the amount
determined by application of the rates herein prescribed, as follows:
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1. Commencing February 15, 1994, and effective until February 28, 2005,
there is levied upon and shall be collected from upon every person
engaging in the business of providing cable television service an-annual
license a fee or tax equal to five percent of the total gross income derived
from, such business in the city of Yakima.
2. Commencing March 1, 2005, and effective thereafter, upon every person
engaging in the business of providing cable television service a fee or tax
equal to six percent of the total gross income derived from such business
in the city of Yakima.
B. For purposes of this provision, "cable television service" shall be
defined to mean:
1. A system providing service pursuant to a franchise issued by the City
under the Cable Communications Policy Act of 1984 (Public Law No. 98-
549, 47 U.S.C. 521 (Supp.)) as it may be amended or superseded; and
2. Any system that competes directly with such franchised system by
employing antennae, microwave, wires, wave- guides, coaxial cables, or
other conductors, equipment or facilities designed, construed or used for
the purpose of: (i) collecting and amplifying local and distant broadcast
television signals and distributing and transmitting them; (ii) transmitting
original cablecast programming not received through television broadcast
signals; or (iii) transmitting television pictures, film and video -tape
programs not received through broadcast television signals, whether or
not encoded or processed to permit reception by only selected receivers;
provided, however, that "cable television service" shall not include entities
that are subject to charges as "Commercial 'TV Stations" under 47 U.S.C.
Section 158 or providers of "direct -to -home satellite service" as defined in
Section 602 of the Telecommunications Act of 1996, Pub. L. No. 104 -104,
110 Stat. 56 (1996).
C. A 'system "competes directly" within the meaning of subsection B of this
sec it if provides one or more functionally equivalent services at
competitive rates, terms and conditions."
Section 2. This ordinance is subject to the referendum procedure set out in
YMC 5.50.205.
Section 3. If any section, subsection, paragraph, sentence, clause or phrase of
this ordinance is declared invalid or unconstitutional for any reason, such decision shall
not affect the validity of the remaining portions of this ordinance.
Section 4. This ordinance shall be in full force and effect 30 days after its
passage, approval, and publication as provided by law and by the City Charter.
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PASSED BY THE CITY COUNCIL at a regular meeting and si: ed and approved
this 17 th day of December, 2004. ? 4
Paul P. George, May • r
ATTEST:
City Clerk
Publication' Date: 12/ 17/ 04 (ordinance
certification)
Effective Date: 1 -16 -2005
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4 IS
For Meeting Of 12 -14 -04
ITEM TITLE: An Ordinance amending Section 5.50.065 of the City of Yakima Municipal
Code pertaining to taxes on the provision of cable television services.
SUBMITTED BY: Dick Zais, City Manager
Cindy Epperson, Financial Services Manager
CONTACT PERSON/TELEPHONE: Cindy Epperson, 575 -6070
SUMMARY EXPLANATION: •
At the December 7, 2004 City Council Budget Wrap -Up Session, the City Council directed staff to
return with legislation to provide for an increase in the utility tax on cable television services from
5% to 6 %.
r inance provides the required he attached o legislative action documents. d p q g
This 1°/0 increase in cable utility tax will provide approximately $98,000 in additional revenue,
which will be dedicated to the Capitol Theatre facility for increasing maintenance costs and capital
needs.
•
Resolution Ordinance X Other (Specify)
Contract IlMaiI to (name and address):
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Phone
Funding Source
APPROVED FOR SUBMITTAL: C�` , -
City Manager
STAFF RECOMMENDATION: Pass ordinance.
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION: Ordinance passed. ORDINANCE NO. 2004-82
Lege
rev .: 21/92