§ 25-2-107. FRANCHISE FEE.

(a)

"Gross revenues" defined.

(1)

In this section, "gross revenues" means all revenues received by a franchisee from the operation or use of its cable system before payment of expenses and other costs.

(2)

"Gross revenues" includes revenues derived from cable service, additional services, interactive services, the sale or lease of subscriber equipment, installation and other service fees, the sale of advertising time and related services, and earnings from home shopping channels.

(3)

"Gross revenues" does not include investment income or uncollectible revenue.

(b)

Duty to pay fee.

(1)

A franchisee shall pay the county an annual franchise fee of 5% of the franchisee's gross revenues for the privilege granted under a franchise for the use of county public rights-of-way.

(2)

If the Federal Communications Commission authorizes and approves an increase in the annual fee above the 5% rate, the franchisee shall pay the county the increased fee on notification by the County Council.

(c)

Duty to pay other taxes. A franchisee shall pay franchise fees in addition to the taxes that are required of commercial enterprises in the county.

(d)

Quarterly payment of fees. A franchisee shall:

(1)

Calculate and pay the franchise fee on a quarterly basis; and

(2)

Pay the franchise fee to the county for the preceding quarter within 30 days after the quarter ends.

(e)

Adjustments in payment. A franchisee shall:

(1)

Make a payment of franchise fees to adjust for a shortfall in the quarterly payments for the preceding year not later than the filing date for the annual financial statements required under Title 3, Subtitle 1 of this article; and

(2)

Credit an adjustment for an overpayment to a subsequent quarterly payment.

(f)

Documentation of revenues. A franchisee shall include with each quarterly payment detailed supporting documentation showing:

(1)

The total amount of gross revenues received during the quarter;

(2)

The various sources of revenue and the amount of revenue attributable to each source; and

(3)

The number of subscribers served.

(g)

Late fees.

(1)

If the county does not receive a franchise fee payment on or before the due date, the county shall charge interest from the due date to the date the fee is paid.

(2)

The county shall charge the annual interest rate chargeable at that time for unpaid federal income taxes.

(1988 Code, §§ 8-2, 8-8) (Bill No. 134-97, §§ 1, 2, 12-5-1997; Bill No. 31-03, § 2, 7-1-2004; Bill No. 74-03, § 5, 7-1-2004; Bill No. 103-04, 1, 10-29-2004)