§ 7-36. Fees.

(a)

For the reason that the streets of the city to be used by a licensee in the operation of its system within the boundaries of the city are valuable public properties acquired and maintained by the city at great expense to its taxpayers, and that the grant to a licensee to use the streets is a valuable property right without which the licensee would be required to invest substantial capital in right-of-way costs and acquisitions, the licensee shall pay to the city an amount as specified in the license but not more than five (5) percent of the licensee's annual gross revenue from all sources attributable to the operations of the licensee within the confines of the license area. In the event that the five (5) percent limitation on license fees imposed by the terms of the Cable Communications Policy Act of 1984 is raised, by an act of Congress or the Federal Communications Commission, the city shall have the right to raise the percentage charged under this section, at its discretion, up to the amount of the limit, upon giving the licensee ninety (90) days notice, after the effective date of the action.

(b)

This payment shall be in addition to any other tax or payment owed to the city or other taxing jurisdiction by the licensee.

(c)

A license fee shall be assessed quarterly: January 1—March 31; April 1—June 30; July 1—September 30; October 1—December 31. A licensee shall file a complete and accurate verified statement of all gross revenues within the city during the period for which said payment is made. Said payment shall be made to the city treasurer not later than thirty (30) days after the expiration of each quarter-year.

(d)

The city shall have the right to inspect a licensee's income records and the right to audit and to recompute any amounts determined to be payable under this chapter; provided, however, that such audit shall take place within one thousand ninety-five (1,095) days following the close of each of the licensee's fiscal years. Any additional amount due the city as a result of the audit shall be paid within thirty (30) days following written notice to the licensee by the city, which notice shall include a copy of the audit report. If the audit discloses underpayment greater than five (5) percent of the amount paid to the city under the terms of this section, the licensee shall be responsible for the cost of such audit.

(e)

In the event that any license payment or recomputed amount, cost, or penalty is not made on or before the applicable dates heretofore specified, interest shall be charged daily from such date at an annual rate two (2) percentage points above the then applicable prime rate.

(Ord. No. 1757, § 29, 8-19-85; Ord. No. 2442, § 3, 4-6-92)

State law reference

Authority to impose fee, A.R.S. § 9-506.