§ 21-5. Local sales and use tax.

(a)

The tax heretofore imposed by the city pursuant to the provisions of the Local Sales and Use Tax Act is hereby continued on the sale, production, distribution, lease or rental of, and the use, storage or other consumption of gas and electricity for residential use.

(b)

The sale, production, distribution, lease or rental of, and the use, storage or other consumption of gas and electricity for residential use shall not be exempt from the tax imposed by the city under the Local Sales and Use Tax Act.

(c)

A tax is hereby authorized and imposed on all receipts from the sale of telecommunications services within the City of Grapevine, Texas, as is provided for by state law. For purposes of this subsection (c), the sale of telecommunications services is consummated at the location of the telephone or other telecommunications device from which the call or other communications 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.

(d)

The application of the exemption on receipts from the sale of telecommunications services provided for in V.T.C.A., Tax Code § 321.210(a), is hereby repealed by the city as authorized by V.T.C.A., Tax Code § 321.210(b).

(e)

The rate of tax imposed by subsection 21-5(c) shall be the same as the rate imposed by the city for all other local sales and use taxes as authorized by the legislature of the State of Texas. The tax imposed by subsection 21-5(c) shall not serve as an offset to, be in lieu of or in any way reduce any amount payable to the city 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.

(f)

The city secretary shall forward to the comptroller of the State of Texas, by United States registered or certified mail, a copy of this Ordinance Number 87-31 immediately upon adoption and a copy of the minutes of the city council's vote and discussion on this ordinance upon approval of the minutes by the city council.

(g)

The provisions of subsections 21-5(c), (d) and (e) shall become effective as of October 1, 1987.

(Ord. No. 79-7, § 2, 3-6-79; Ord. No. 87-31, § 2, 6-16-87)