This article imposes a tax on persons who sell video programming to subscribers in Abington Township by means of transmission, or who provide such subscribers with access to video programming by any means of transmission, and providing penalties, all as authorized by the Video Programming Municipal Tax Authorization Act,[1] and under certain terms and conditions.
[1]
Editor's Note: See 72 P.S. § 6171 et seq.
As used in this article, the following terms shall have the meanings indicated:
CABLE TELEVISION OPERATOR
Any person or group of persons who provides cable service over a cable system and who, directly or through one or more affiliates, owns an interest in such cable system, or who otherwise controls or is responsible for, through any arrangement, the management and operation of a cable system. The term does not include a provider of wireless or direct-to-home satellite transmission service.
DIRECT-TO-HOME SATELLITE TRANSMISSION
The transmission, distribution, or broadcasting of video programming or services by satellite directly to subscribers' premises without the use of ground receiving or distribution equipment, except at the site of the subscribers' premises or in the uplink process to the satellite.
GROSS RECEIPTS
A. 
Gross receipts shall include:
(1) 
The amount charged for or received by video programmers from sales of video programming to subscribers with service addresses in the Township, and related charges for bad check and late payment charges, installation, connection, additional outlets, repair services, digital audio services, radio services, programming guides and equipment rental services upon which cable television operators within the Township pay franchise fees; and
(2) 
The amount charged for or received by common carriers from sales of access to video programming to subscribers with service addresses in the Township, and related charges for bad check and late payment charges, installation, connection, additional outlets, repair services, digital audio services, radio services, programming guides, and equipment rental services upon which cable television operators within the Township pay franchise fees; and
(3) 
The amount charged for or received by persons from sales of access to video programming by any means of transmission, other than wireless or direct-to-home satellite transmission, directly to subscribers with service addresses in the municipality.
B. 
Gross receipts shall not include:
(1) 
Amounts charged for or received by persons from sales of telephone access or service that entitles the subscriber to the privilege of interactive telephone quality telecommunications, with substantially all persons having telephone or radio telephone stations constituting a part of a particular system or in a specified area;
(2) 
Any revenues received by persons providing access to video programming from video programmers for the transport of video programming to a subscriber's premises or access to the video dial-tone network;
(3) 
The tax imposed under this Part 2 if the tax is shown as a separate line charge to subscribers;
(4) 
Any other taxes, fees, or surcharges on services furnished by persons providing access to video programming or video programmers as imposed on subscribers by the commonwealth cities, incorporated towns, townships, boroughs, counties, or home rule municipalities pursuant to statute, ordinance, resolution or regulation, and which are collected on behalf of the governmental unit by the provider of the services;
(5) 
Any portion of a debt related to the sale of video programming or the sale of access to a video network, the gross charges for which are not otherwise deductible or excludable, that have become worthless or uncollectible as determined under applicable federal income tax standards. If the portion of the debt deemed to be bad is subsequently paid, the video programmer or person shall report and pay the tax imposed under this Part 2 on that portion during the reporting period in which the payment is made;
(6) 
Amounts received from retail sales of tangible personal property that provides access to video programming;
(7) 
Amounts charged for or received by persons from sales of video programming which is delivered to subscribers through a satellite master antenna television (SMATV) system; or
(8) 
Amounts received by a common carrier from persons for related charges for bad check and late payment charges, installation, connection, additional outlets, repair services, digital audio services, radio services, programming guides, and equipment rental services that are resold by such persons to the ultimate consumer.
PERSON
Any individual, partnership, association, joint stock company, trust, corporation, government entity, limited liability company, or any other entity.
SUBSCRIBER
The ultimate consumer of the video programming provided by video programmers over any means of transmission other than wireless or direct-to-home satellite transmission. The term does not include a video programmer that purchases video dial-tone transport service to provide video programming over a video dial-tone system.
VIDEO DIAL-TONE SERVICE
A common carrier service for the transport of video programming to subscribers.
VIDEO PROGRAMMER
A person that provides video programming to subscribers.
VIDEO PROGRAMMING
Video or information programming, whether in digital or analog format, that is provided by a cable operator, or generally considered comparable programming provided by a cable television operator, and upon which such cable television operator pays a franchise fee. The term does not include on-line, interactive information services to the extent that access to such services is accomplished via a dial-up or private telephone line or via wireless or direct-to-home satellite transmission.
WIRELESS TRANSMISSION
The distribution of video programming using radio communications, including, but not limited to, terrestrial-based radio systems.
A. 
There is hereby imposed a tax, as authorized by the Video Programming Municipal Tax Authorization Act,[1] on any person who sells video programming to subscribers within the Township by any means of transmission other than wireless or direct-to-home satellite transmission, or who provides such subscribers with access to video programming by any means of transmission and who is not otherwise subject to the five-percent-of-gross-revenues franchise fee imposed by the Township on its cable television franchises.
[1]
Editor's Note: See 72 P.S. § 6171 et seq.
B. 
The tax imposed under this Part 2 shall be imposed to the full extent permitted by the Constitution of the United States only upon persons within the Commonwealth of Pennsylvania who:
(1) 
Engage in any commercial activity;
(2) 
Employ capital;
(3) 
Own, lease or utilize property;
(4) 
Maintain an office; or
(5) 
Have employees for all or any part of any calendar year.
A. 
The tax imposed by this section shall be at the rate of 5% on the gross receipts from sales of video programming or sales of access to video programming directly to subscribers within the Township.
B. 
Any person subject to the tax imposed under this article shall be entitled to the following credits:
(1) 
A credit equal in amount to any similar tax on gross receipts, other than a generally applicable sales tax, use tax, or corporate income tax, that the person has paid to another state or government entity thereof under a lawful requirement of such state or government entity on sales by the person of the same video programming, or sales of access to such video programming to subscribers within the Township; and
(2) 
A credit equal in amount to any fees on gross receipts that the person has paid under any franchise fee or similar fee authorized or permitted by federal, state, or local law or imposed by ordinance in any municipality, or agreed to pursuant to a written franchise agreement between the person and the municipality with respect to any revenues received by a person or video programmer from subscribers with the Township for access to the person's video programming, or from video programmers for the transport of video programming to a subscriber's premises within the Township, or for access to a video network.
C. 
A penalty of an amount equal to 10% of the taxes due, including all delinquent taxes due under this article, shall be added to the tax levied under this article for failure to pay the tax by the quarterly due dates set forth herein. This penalty shall be in lieu of other penalty provisions but all other provisions shall apply to the taxes imposed under this article.
A. 
A person subject to the tax imposed under this article shall file on forms provided by the Township's finance officer, quarterly returns on or before January 31, April 30, July 31, and October 31 of each year.
B. 
Payment of the tax shall accompany each quarterly return, with each quarterly payment calculated upon the gross receipts of the taxpayer during the three months prior to the month of payment.
C. 
A return and accompanying payment shall be considered as timely made if received by the Township and postmarked by the United States Postal Service on or prior to the quarterly due date applicable to such return and payment.
The Township's finance officer shall provide video programmers and persons providing access to video programming subscribers within the Township all the information which the Township is required to provide such persons under § 6 of the Video Programming Municipal Tax Authorization Act.[1]
[1]
Editor's Note: See 72 P.S. § 6171 et seq.
Section 1 of this Part 2[1] shall take effect on the first day of the first month which begins at least 60 days after this Part 2 becomes law. Section 2 of this Part 2[2] shall take effect immediately.
[1]
Editor's Note: "Section 1 of this Part 2" refers to this Part 2.
[2]
Editor's Note: "Section 2 of this Part 2" refers to Zoning Ordinance amendments not included here. See Ch. 162, Zoning.
Video programmers shall provide the Township with annual reports, audit reports, and any other documentation necessary to determine compliance with the provisions of this Part 2.