14-39 - O TOWN OF PROSPER, TEXAS ORDINANCE NO. 14-39
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS, AMENDING
CHAPTER 11, "TAXATION," OF THE CODE OF ORDINANCES OF THE
TONW OF PROSPER, TEXAS, BY ADDING A NEW ARTICLE 11.05,
"TELECOMMUNICATIONS SERVICES TAX," AND REPEALING THE
APPLICATION OF THE EXEMPTION FROM LOCAL SALES AND USE TAXES
ON RECEIPTS FROM THE SALE OF TELECOMMUNICATIONS SERVICES
WITHIN THE TOWN OF PROSPER, TEXAS, AS PROVIDED IN SECTION
321.210 OF THE TEXAS TAX CODE, AS AMENDED; IMPOSING A LOCAL
SALES AND USE TAX ON THE RECEIPTS FROM THE SALE OF
TELECOMMUNICATIONS SERVICES WITHIN THE TOWN OF PROSPER,
TEXAS; 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,
CHARTER PROVISION, STATUTE OR ANY OTHER IMPOSITION OF THE
TOWN OF PROSPER, TEXAS; PROVIDING FOR REPEALING, SAVINGS
AND SEVERABILITY CLAUSES; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the Town of Prosper ("Town") is a home-rule municipality located in both
Collin and Denton Counties, Texas, and is fully empowered with all the rights and duties of
home-rule municipalities according to applicable provisions of the Texas Constitution; and
WHEREAS, Section 321.210 of the Texas Tax Code provides the authority for the Town
to repeal the application of the exemption from local sales and use taxes on receipts from the
sale of telecommunications services within the Town; and
WHEREAS, the repeal of the application of the exemption would allow the Town to
impose a sales and use tax on the receipts from the sale of telecommunications services within
the Town; and
WHEREAS, the Town Council finds that the repeal of the application of the exemption
and the imposition of a sales and use tax on the receipts from the sale of telecommunications
within the Town is in the best interests of the citizens of the Town.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1
The findings set forth above are incorporated into the body of this Ordinance as if fully
set forth herein.
SECTION 2
From and after the effective date of this Ordinance, Chapter 11, "Taxation," of the
Town's Code of Ordinances is hereby amended by adding a new Article 11.05,
"Telecommunications Services Tax," to read as follows:
"ARTICLE 11.05 TELECOMMUNICATIONS SERVICES TAX
Sec. 11.05.001 Authority to levy
A tax is hereby authorized and imposed on all receipts from the sale of telecommunications
services within the Town, as is provided for by state law. For purposes of this section, the sale
of telecommunications services is consummated at the location of the telephone or other
telecommunications device from which the call or other communication originates. If the point of
origin cannot be determined, the sale is consummated at the address to which the call or other
communication is billed.
Sec. 11.05.001 Rate of tax
The rate of tax imposed by this section shall be the same as the rate imposed by the Town for
all other local sales and use taxes as authorized by the legislature of the State of Texas.
Sec. 11.05.003 Notice to Comptroller
The Town Secretary shall forward to the Comptroller of the State of Texas by certified mail,
return receipt requested, a copy of this Ordinance along with a copy of the minutes of the Town
Council's vote and discussion regarding this Ordinance.
Sec. 11.05.004 Repeal of exemption
The application of the exemption provided for in Section 321.210 of the Texas Tax Code is
hereby repealed by the Town Council as authorized by Section 321.210 of the Texas Tax
Code."
SECTION 3
All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the
extent they are in conflict; but such repeal shall not abate any pending prosecution for violation
of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for
any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said
ordinances shall remain in full force and effect. Further, the tax provided for hereunder shall not
serve as an offset to, be in lieu of or in any way reduce any amount payable to the Town
pursuant to any franchise, street use ordinance, charter provision, statute or, without limitation
by the foregoing enumeration, otherwise payable by any provider of telecommunications
service; it being the express intent hereof that all such obligations, impositions and agreements
of every kind and nature shall remain in full force and effect without reduction or limitation
hereby.
Ordinance No.14-39,Page 2
SECTION 4
If any section, subsection, sentence, clause or phrase of this Ordinance is for any
reason held to be unconstitutional or invalid by a court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of this Ordinance. Prosper hereby declares
that it would have passed this Ordinance, and each section, subsection, clause or phrase
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
and phrases be declared unconstitutional.
SECTION 5
This Ordinance shall take effect and be in full force from and after its passage, as
provided by the Revised Civil Statutes of the State of Texas and the Home Rule Charter of the
Town of Prosper, Texas
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS ON THIS 22nd DAY OF JULY, 2014.
APPROVED:
Ray Smith,(Mayor
ATTEST:
i
Otobyn ttle, Town Secretark
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
Ordinance No.14-39,Page 3