Sec. 5B-6. Compensation.
a. The City shall not levy a tax, rent, fee or charge to a telecommunications corporation for the use of a public highway to provide telecommunications services or interstate telecommunications services, or levy a tax, fee or charge upon the privilege of engaging in the business of providing telecommunications services or interstate telecommunications services, except that, in connection with its provisions of telecommunications services and interstate telecommunications services, and its use of the highways to provide the same, each telecommunications corporation shall:
1. Pay a transaction privilege tax on the business of providing telecommunications services or applicable use tax, as may be specified from time to time in Chapter 14 of the Phoenix City Code, except that this subsection does not authorize the imposition of a transaction privilege tax on the business of providing interstate telecommunications services.
2. A telecommunication corporation that has placed facilities in public highways that carry interstate traffic between and among the telecommunication corporation’s points of presence, exclusive of facilities used by the local network and the portion of the interstate network that carries intrastate calls, shall pay an annual fee based on the number of linear feet of trench in the public highways. For licenses issued after May 16, 2001 the rate per linear foot shall be seventy-six cents. The rate per linear foot shall be increased in any calendar year thereafter by the increase in the average consumer price index as published by the United States Department of Labor, Bureau of Labor Statistics. The City shall calculate the annual footage fee using as the number of lineal feet, the total amount of lineal feet approved for installation in the City less any footage removed or abandoned as provided in the license or this ordinance. The total annual fee shall be due and payable by the first business day of the annual billing period.
3. Pay public highway construction permit fees established by the City.
4. Pay all reasonable costs associated with the construction, maintenance and operation of its facilities in the public highways used to provide telecommunications services, including reasonable costs associated with damage caused to the public highways.
b. The license or franchise may include in-kind payments if agreed to by the City and licensee or franchisee. The calculation of the in-kind benefits shall be set forth in such license or franchise and shall be limited to the costs of the in-kind facility. Any in-kind facilities provided the City by such license or franchise shall remain in possession and ownership of the City after the term of the license or franchise expires. The value of in-kind benefits shall be offset against either payments of interstate linear foot charges or transaction privilege taxes as provided in Chapter 14 of the Phoenix City Code, however, such offset shall not be allowed against any combination of intrastate transaction privilege tax and interstate linear foot charge.
c. Nothing in this section is intended to limit the obligation of any person to pay amounts owed under any franchise or license issued prior to the effective date of this ordinance or if this ordinance is amended, the effective date of the adoption of such amendment to this ordinance. (Ord. No. G-4135, § 1, 1998; Ord. No. G-4351, § 1G, 2001)