§ 10-4. Gross revenues defined.

(a)

For purposes of this chapter, "gross revenues" means all cash, credits, property of any kind or other consideration received directly or indirectly by a licensee or any of its affiliates, or by any person or entity in which a licensee has a financial interest or which has a financial interest in a licensee, which are derived from a licensee's operation of its cable system to provide cable service within the city, including all revenue from:

(1)

All charges for services provided to subscribers;

(2)

All charges for the insertion by the licensee of commercial advertising into the cable system;

(3)

All charges for the use of studio facilities of the cable system;

(4)

All charges for the use of leased access channels or bandwidth;

(5)

All revenues from the production for transmission over the cable system of video programming by the licensee, including programming produced by its mobile facilities;

(6)

All charges for the installation, removal, connection and reinstatement of equipment necessary for a subscriber to receive cable service;

(7)

All charges for the sale, exchange, use or cablecast of any programming by the licensee within the service area; and

(8)

And any other income derived from the operation of the cable system to provide cable service, including forfeited deposits, rental of remote equipment and converters, late charges, interest charges, sale of program guides and all other receipts from subscribers.

(b)

Gross revenues shall not include taxes collected by a licensee on behalf of any governmental authority (the license fee is not such a tax), any increase in the value of any stock, security or asset, or any dividends or other distributions made in respect of any stock or securities.

(c)

Gross revenues shall not include cash, credit, property of any kind or other consideration received by a licensee's affiliates or any person or entity in which a licensee has a financial interest or which has a financial interest in a licensee for any sales of advertising on the cable system, services to provide programming on the cable system, production services or telecommunication services which is cable service when such services are provided by an affiliate or such other person or entity which has all the following characteristics: (1) the affiliate or such other person or entity is a separate legal entity, with separate employees, separate financial records (which may be part of consolidated financial reporting records) and a separate mission; (2) it makes payments to the licensee which meet market standards for the services and industries involved; and (3) it was established for valid business purposes and not for the purpose of circumventing payment of license fees on gross revenues. Nothing contained in this exclusion from gross revenues shall be interpreted to exclude from gross revenues such cash, credit, property of any kind or other consideration which would be considered a cable operator's gross revenues derived from the operation of the cable system under the Cable Act.

(d)

When a licensee or an affiliate holds one (1) or more other cable licenses in Maricopa County and receives and allocates among various licensing authorities gross revenues from subsections (a)(2), (a)(4) or (a)(5), then such gross revenues shall be allocated pro rata to the city based on the ratio of the number of subscribers of the licensee in the city to the total number of subscribers of the licensee or an affiliate in all of such licensing authorities' jurisdictions.

(Ord. No. 2053, § 1, 12-8-98)