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City of Portland

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7.12.060 Payment of Privilege Tax Required.

A.  Definitions.  As used in the Utility Privilege Tax, the following terms are defined as provided in this Section:

1.  “Gross Revenue” means any revenue earned within the City, after adjustment for the net write-off of uncollectible accounts, from the sale of electrical energy, gas, district heating or cooling, or water, or sewage disposal and treatment service, or for the furnishing or sale of communications or associated services, and for use, rental, or lease of operating facilities of the utility engaged in such business.  “Gross Revenues” shall not include earnings from interstate business, or earnings from the business of the United States government.

2.  “Telecommunications Utility” has the meaning provided in ORS 759.005(9) (2011).

3.  “Utility” means any electric cooperative, people’s utility district, privately-owned public utility or heating company.

B.  Any telecommunications utility using or occupying a street, alley or highway for other than travel within the City without a franchise for a period of 30 days or longer shall pay a privilege tax.  The privilege tax imposed upon telecommunications utilities under this Subsection shall be in an amount of 7 percent of the telecommunications utility’s gross revenues earned within the corporate limits of the City for each consecutive 3 month period.  For the purposes of this paragraph, “gross revenues” shall mean all revenues derived from exchange access services, as defined in ORS 401.710, less uncollectibles from such revenues.  The privilege tax shall be computed as of the commencement of business or upon the expiration of any franchise under which the telecommunications utility formerly operated.  The privilege tax shall be due and payable so long as the telecommunications utility operates within the City and uses or occupies the streets, alleys or highways.

C.  Any utility using or occupying a street, alley, or highway within the City without a franchise for a period of 30 days or longer shall pay a privilege tax for the use and occupancy of any street, alley or highway.  The privilege tax imposed under this Subsection shall be in an amount of 5 percent of the utility’s Gross Revenues of the City for each consecutive 3 month period.  The privilege tax shall be computed as of 30 days after the commencement of business or 30 days after the expiration of any franchise or other authority under which the utility formerly operated.  The privilege tax shall be due and payable so long as the utility operates with the City and uses or occupies the streets, alleys or highways.

D.  In the event a franchise is granted to any utility subject to the privilege tax under the Utility Privilege Tax Law and the franchise becomes effective, then the privilege tax shall cease to apply from the effective date of the franchise.  The franchise holder shall pay the proportionate earned amount of the privilege tax for the current quarterly period.  The privilege tax shall in all such cases become immediately due and payable, and if not paid, collectible as provided in Section 7.12.080.