Title
Approving an ordinance on second reading with the caption reading: An ordinance of the City of Pflugerville, Texas, amending the City's Code of Ordinances, Chapter 33 Finance and Taxation by adding a new Section 32.23, Telecommunication Services Tax relating to taxation of Telecommunications Services; repealing the application of the exemption provided for in Section 321.210 of the Texas Tax Code; providing for notification to the Comptroller of the State of Texas; providing that no such tax provided for hereunder shall serve as an offset to or to reduce any amount payable by any provider of Telecommunications Services pursuant to any franchise, street use ordinance, statute or any other imposition of the City of Pflugerville; providing for incorporation of premises; providing for findings; providing a cumulative repealer clause; providing for savings, providing for severability; providing for engrossment and enrollment; and providing an effective date.
Summary
Pursuant to Chapter 33 Finance and Taxation, section 32.23, telecommunication services are exempt from local sale/use tax, unless a city repeals the tax exemption by local ordinance and then provides a copy of the ordinance to the Comptroller’s office. The tax applies to residential and commercial customers alike that utilize the applicable services.
The additional Telecom Sales Includes:
• Land line telephone service
• Long distance calls within Texas
• VOIP (voice over IP)
• All calls not itemized (e.g. unlimited long distance)
• Mobile phone service (taxes based on billing addresses)
Does Not Include (these taxes are already being collected and paid):
• Long distance calls from Texas to other US states
• Equipment/Fees charged by another provider
• Internet services
Prior City Council Action
This ordinance was approved on first reading on May 25, 2021.
Deadline for City Council Action
N/A
Funding Expected: Revenue x_ Expenditure __ N/A __
Budgeted Item: Yes __ No x_ N/A __
Amount: __Not available______
1295 Form Required? Yes __ No _x_
Legal Review Required: N/A __ Required x__ Date Completed: _05/14/2021__________
Supporting documents attached:
Ordinance
Recommended Action
Staff recommends approval of ordinance as presented.