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Legislation #: 060481 Introduction Date: 4/27/2006
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER EDDY
Title: Promulgating a telecommunications business license tax rate as required by the State of Missouri through the Municipal Telecommunications Business License Tax Simplification Act, declaring an emergency, and directing the City Clerk to publish notice of the Council’s designation of a new tax rate.

Legislation History
DateMinutesDescription
4/27/2006 Filed by the Clerk's office
4/27/2006 Passed

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ORDINANCE NO. 060481

Promulgating a telecommunications business license tax rate as required by the State of Missouri through the Municipal Telecommunications Business License Tax Simplification Act, declaring an emergency, and directing the City Clerk to publish notice of the Councils designation of a new tax rate.

  WHEREAS, the Municipal Telecommunications Business License Tax Simplification Act enacted by the Missouri General Assembly effective August 28, 2005, requires cities assessing a telecommunications business license tax to adjust rates downward to reflect the inclusion of a portion of wireless communications gross receipts within the scope of the tax; and

WHEREAS, the City adopted a preliminary rate of 5% by Ordinance 060380 on March 30, 2007, attempting to comply with the mandate of the Municipal Telecommunications Business License Tax Simplification Act; and

WHEREAS, because the required information was not available from the State of Missouri the City joined other cities in seeking a temporary restraining order against enforcement of the law until information from the Missouri Department of Revenue was available for use in determining the proper tax rate; and

WHEREAS, the Missouri Department of Revenue provided to the City on April 25, 2006, the needed information to establish a rate; and

WHEREAS, it is not the intention of the City to repeal or displace its current telephone occupational license fee found in sections 40-360, 40-361, and 40-369, Code of Ordinances, but to comply with the mandates of the Municipal Telecommunications Business License Tax Simplification Act which renders the ordinances unenforceable so long as the Municipal Telecommunications Business License Tax Simplification Act is effective; and

  WHEREAS, it is not the intention of the City to make any admission that the terms of the Municipal Telecommunications Business License Tax Simplification Act are constitutional or otherwise lawful, recognizing that on April 6, 2006, the Missouri Supreme Court will hear arguments in the cases of City of Wellston v. SBC communications, Inc., City of University City v. AT&T Wireless Services, Inc., City of Springfield v. Sprint Spectrum, L.P. and City of St. Louis v. Sprint Spectrum, L.P. which challenge the validity of the Municipal Telecommunications Business License Tax Simplification Act; and

  WHEREAS, the City reserves the right to further adjust its rates should the General Assembly adopt Senate Bill 582, or similar legislation, which will reinstate a compromise between municipalities and telecommunications companies made during the 2005 General Assembly but which was changed as the result of unilateral action taken by industry representatives in discussions with the sponsor in the last days of the 2005 Session; and

  WHEREAS, by enacting this ordinance effective prior to April 28, 2006, the expiration of the temporary restraining order granted against enforcement of the statute the City protects its property, in the form of anticipated tax revenues, and therefore constitutes an action necessary to for the immediate preservation of the public peace, property, health, safety or morals, and therefore constitutes an emergency within the terms of section 15(a)(2), City Charter; NOW, THEREFORE

  BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

  Section 1. That Section 1 of Ordinance 060380 is repealed for the purpose of enacting the rate based upon data provided by the Missouri Department of Revenue.

Section 2. That pursuant to the Municipal Telecommunications Business License Tax Simplification Act the rate for telecommunications services is estimated to be 5.2%.

Section 3. That should the provisions of the Municipal Telecommunications Business License Tax Simplification Act be found unlawful, the City will continue with the lawful enforcement of sections 40-360, 40-361, and 40-369, Code of Ordinances.

Section 4. That the City Clerk will publish notice of this rate pursuant to the terms of the Municipal Telecommunications Business License Tax Simplification Act.

Section 5. That pursuant to the terms of section 15(a)(2), City Charter this ordinance is declared an emergency as defined it its preamble and will take effect immediately upon passage and approval by the Mayor.

________________________________________

  Approved as to form and legality:

 

______________________________

William Geary

Assistant City Attorney