Bill Text: OR HB2455 | 2013 | Regular Session | Introduced

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Bill Title: Relating to privilege taxation of communications services; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2455 Detail]

Download: Oregon-2013-HB2455-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1100

                         House Bill 2455

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of House Interim Committee on Revenue)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Broadens types of communications services on which
municipalities may impose privilege tax. Modifies privilege tax
rate imposed on gross revenues of communications service
providers.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to privilege taxation of communications services;
  amending ORS 221.505, 221.510 and 221.515; and prescribing an
  effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 221.505 is amended to read:
  221.505. The Legislative Assembly recognizes that significant
changes have occurred in the regulation, technology and marketing
of   { - telecommunications carriers as defined in ORS 133.721
over the past decade - }  { +  communications services + }. It is
the intent of the Legislative Assembly in adopting the privilege
tax authorized by ORS 221.505 to 221.515 and 759.219 to respond
to these changes by establishing a uniform base for municipal
charges for street use by   { - telecommunications carriers - }
 { +  communications service providers as defined in ORS
221.510 + }.
  SECTION 2. ORS 221.510 is amended to read:
  221.510. (1) As used in this section:
    { - (a) 'Telecommunications carrier' has the meaning given
that term in ORS 133.721. - }
    { - (b) - }   { + (a) + } 'Commission' means the Public
Utility Commission of Oregon.
   { +  (b) 'Communications service provider' means:
  (A) A competitive telecommunications provider as defined in ORS
759.005;
  (B) A telecommunications utility as defined in ORS 759.005; or
  (C) A provider of interconnected voice over Internet protocol
service. + }
  (c) 'Council' means the common council, city council,
commission or any other governing body of   { - any - }
 { + a + } municipality { + . + }
  { - wherein the property of the telecommunications carrier is
located. - }

   { +  (d) 'Interconnected voice over Internet protocol service
' means a service that:
  (A) Enables real-time, two-way voice communications;
  (B) Requires a broadband connection from the user's location;
  (C) Requires Internet protocol-compatible customer premises
equipment; and
  (D) Permits users generally to receive calls that originate on
the public switched telephone network and to terminate calls to
the public switched telephone network. + }
    { - (d) - }   { + (e) + } 'Municipality' means   { - any
town, municipality - }   { + a town + } or other municipal
government   { - wherein - }   { + in which the + } property of
 { - the telecommunications carrier - }   { + a communications
service provider + } is located.
    { - (e) - }   { + (f) + } 'Service'   { - is used - }
 { + means service + } in its broadest and most inclusive sense
and includes equipment and facilities.
  (2) Every municipality may:
  (a) Determine by contract, or prescribe by ordinance or
otherwise, the terms and conditions, including payment of a
privilege tax to the extent authorized by ORS 221.515 and other
charges and fees, upon which   { - any telecommunications
carrier - }   { + a communications service provider + } may be
permitted to occupy { + , and to exclude or eject another
communications service provider from, + } the  { +  public + }
streets,  { + alleys, + } highways or other public property
within
  { - such - }   { + the + } municipality   { - and exclude or
eject any telecommunications carrier therefrom - } .
  (b) Require   { - any telecommunications carrier - }  { +  a
communications service provider + }, by ordinance or otherwise,
to make such modifications, additions and extensions to
 { - its - }   { + the + } physical equipment, facilities or
plant or service  { + of the communications service provider + }
within   { - such - }   { + the + } municipality as shall be
reasonable or necessary in the interest of the public, and
designate the location and nature of all  { + modifications, + }
additions and extensions, the time within which they must be
completed and all conditions under which they must be
constructed.
  (c) Provide for a penalty for noncompliance with the provisions
of any charter provision, ordinance or resolution adopted by the
municipality in furtherance of the powers specified in this
subsection.
  SECTION 3. ORS 221.515 is amended to read:
  221.515.  { + (1) As used in this section:
  (a) 'Communications service provider' has the meaning given
that term in ORS 221.510.
  (b) 'Gross revenues' means the revenues derived from
telecommunications service or from interconnected voice over
Internet protocol service, less net uncollectibles from the
revenues.
  (c) 'Interconnected voice over Internet protocol service ' has
the meaning given that term in ORS 221.510.
  (d) 'Telecommunications service' has the meaning given that
term in ORS 759.005. + }
    { - (1) - }   { + (2) + } The council of every municipality
in this state may levy and collect from every
 { - telecommunications carrier - }  { + communications service
provider + } operating within the municipality and actually using
the  { + public + } streets, alleys or highways  { - , or all of
them, in such - }   { + in the + } municipality for
 { + purposes + } other than travel, a privilege tax for the use
of   { - those - }   { + the public + } streets, alleys or
highways  { - , or all of them, in such - }   { + in the + }
municipality in an amount   { - which - }   { + that + } may not
exceed   { - seven - }   { +  ___ + } percent of the gross
revenues of the   { - telecommunications carrier - }
 { + communications service provider + } currently earned within
the boundaries of the municipality. The privilege tax authorized
 { - in - }  { + under + } this section shall be for each year,
or part of each year, that   { - such telecommunications
carrier - }   { + a communications service provider + } operates
within the municipality.
    { - (2) As used in this section, 'gross revenues' means those
revenues derived from exchange access services, as defined in ORS
403.105, less net uncollectibles from such revenues. - }
  (3) { + (a) + } A   { - telecommunications carrier - }
 { + communications service provider + } paying the privilege tax
authorized   { - by - }   { + under + } this section
 { - shall - }   { + may + } not be required to pay any
additional fee, compensation or consideration, including the free
use or construction of telecommunications  { + service or
interconnected voice over Internet protocol service + }
facilities and equipment, to the municipality for   { - its - }
 { + the provider's + } use of  { + the + } public streets,
alleys  { - , - }  or highways  { - , or all of them, - }  and
 { - shall - }   { + may + } not be required to pay any
additional tax or fee on the gross revenues that are the measure
of the privilege tax.
   { +  (b) + } As used in  { + paragraph (a) of + } this
subsection, 'use ' includes, but is not limited to, street
openings, construction and maintenance of fixtures or facilities
by   { - telecommunications carriers - }  { +  communications
service providers + }.
   { +  (c) + }   { - As used in this subsection, 'additional
fee, compensation or consideration' does not include - }
 { + The prohibition against additional fees, compensation or
consideration under paragraph (a) of this subsection does not
apply to + } commissions paid for siting public telephones on
municipal property.
   { +  (d)(A) + } To the extent that separate fees are imposed
by the municipality on   { - telecommunications carriers - }
 { + communications service providers + } for street openings,
construction, inspection or maintenance of fixtures or
facilities,   { - such - }   { + the + } fees may be deducted
from the privilege tax authorized   { - by - }   { + under + }
this section.
   { +  (B) + }   { - However, telecommunications carriers
shall - }  { +  Notwithstanding subparagraph (A) of this
paragraph, communications service providers may + } not deduct
charges and penalties imposed by the municipality for
noncompliance with charter provisions, ordinances, resolutions or
permit conditions from the privilege tax authorized   { - by - }
 { + under + } this section.
   { +  (4) A cable operator, as defined in ORS 30.192, paying a
franchise fee, as defined in 47 U.S.C. 542, as in effect on
January 1, 2013, to a municipality under a franchise, as defined
in 47 U.S.C. 522(9), as in effect on January 1, 2013, may not be
required to pay additional taxes or fees on the gross revenues
that are the measure of the franchise fee paid under the cable
franchise. + }
    { - (4) For purposes of this section, 'telecommunications
carrier' has the meaning given that term in ORS 133.721. - }
  SECTION 4.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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