ORD 2015-06TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2015-06
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS,
AMENDING THE CODE OF ORDINANCES OF THE TOWN OF TROPHY
CLUB BY ADDING ARTICLE III, ENTITLED "TAX ON
TELECOMMUNICATIONS SERVICES" TO CHAPTER 15, ENTITLED
"TAXATION", TO REPEAL THE SALES TAX EXEMPTION ON
TELECOMMUNICATIONS SERVICES SOLD WITHIN THE
BOUNDARIES OF THE TROPHY CLUB CRIME CONTROL AND
PREVENTION DISTRICT (SUCH BOUNDARIES BEING THE SAME
BOUNDARIES AS THAT OF THE CORPORATE TERRITORY OF THE
TOWN) AND THEREBY LEVYING A TAX ON THOSE SERVICES AT
THE MAXIMUM RATE AUTHORIZED BY LAW FOR ALL OTHER
LOCAL SALES AND USE TAXES; PROVIDING FOR THE
INCORPORATION OF PREMISES; PROVIDING FOR THE ADOPTION
OF ARTICLE III TO CHAPTER 15 REPEALING THE EXEMPTION AND
LEVYING A TAX ON TELECOMMUNICATIONS SERVICES;
PROVIDING FOR THE LEVY OF THE TAX AND THE RATE;
PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING
SEVERABILITY; PROVIDING FOR ENGROSSMENT AND
ENROLLMENT; PROVIDING FOR NOTIFICATION TO THE STATE
COMPTROLLER; PROVIDING FOR PUBLICATION; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, Section 321.210 of the Texas Tax Code provides that
telecommunications services are subject to the state sales tax, but are exempt from all
local sales taxes; and
WHEREAS, Section 322.109 of the Texas Tax Code also provides that a local
government may repeal that exemption from local sales tax by ordinance; and
WHEREAS, the Town of Trophy Club had previously repealed the
telecommunications services tax exemption within the Town in 1989; however, with
recent elections reallocating sales tax within the Town from the Economic Development
Corporation 413 to the Trophy Club Crime Control and Prevention District (hereinafter
"CCPD"), the sales tax exemption for telecommunications services is currently in effect
for telecommunications services within the boundaries of the Crime Control and
Prevention District (such boundaries being the same boundaries as the corporate
territory of the Town); and
WHEREAS, on August 28, 2014, the Crime Control Prevention District Directors
considered the current sales tax exemption and determined that it would be beneficial to
the objectives of the CCPD to recommend the repeal of the telecommunications
ORD 2015-06
services sales tax exemption within the boundaries of the CCPD and to levy a sales and
use tax on those services; and
WHEREAS, the CCPD does not have the authority to adopt an ordinance and
has therefore requested that the Trophy Club Town Council approve the repeal of sales
tax exemption on telecommunications to provide additional revenues to the CCPD; and
WHEREAS, the Town Council has considered the recommendation of the CCPD
and has determined that the best interests of the Town and of the CCPD would be
served by adopting this ordinance repealing the telecommunications sales and use tax
exemption within the boundaries of the CCPD and levying a tax at the rate lawfully
imposed for all other local sales and use taxes as authorized by the legislature of the
State of Texas.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS, THAT:
SECTION 1.
INCORPORATION OF PREMISES
That the above and foregoing premises are true and correct and are incorporated
herein and made a part hereof for all purposes.
SECTION 2.
AMENDMENT
2.01 Chapter 15 of the Code of Ordinances of the Town of Trophy Club, entitled
"Taxation" is hereby amended to add Article III, entitled "Tax on Telecommunications
Services", so that Article I I I shall be and read in its entirety as follows:
Article III. Tax on Telecommunications Services.
3.01 Telecommunications Tax Levied / Rate. A local sales and use
tax is hereby authorized on all telecommunications services sold within the
boundaries of the Trophy Club Crime Control and Prevention District. For
purpose of this Article, 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. The rate of the sales and use tax imposed by this Article shall be
the same as that rate lawfully imposed by the Trophy Club Crime Control
and Prevention District for all other local sales and use taxes as
authorized by the legislature of the State of Texas, and the statutory
exemption for sales and use tax on telecommunications is hereby
repealed.
ORD 2015-06 2
SECTION 3.
SAVINGS AND REPEALER
That this Ordinance shall be cumulative of all other Ordinances of the Town
affecting sales and use tax and shall not repeal any of the provisions of such
Ordinances except in those instances where provisions of those Ordinances are in
direct conflict with the provisions of this Ordinance; whether such Ordinances are
codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy
Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall
remain in full force and effect. Notwithstanding the foregoing, any complaint, action,
cause of action or claim which prior to the effective date of this Ordinance has been
initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to
be governed by the provisions of that Ordinance and for that purpose the Ordinance
shall be deemed to remain and continue in full force and effect.
SECTION 4.
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance, or application thereof to any person or circumstance, is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of the Ordinance, and the Town Council hereby
declares it would have passed such remaining portions of the Ordinance despite such
invalidity, which remaining portions shall remain in full force and effect.
SECTION 5.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross
and enroll this Ordinance in accordance with the Town Charter and by filing this
Ordinance in the Ordinance records of the Town.
SECTION 6.
COMPTROLLER NOTIFICATION
The Strategic Services Coordinator shall forward to the Comptroller of the State
of Texas by email a signed copy of this ordinance. The sales and use tax shall be
levied by the Comptroller in accordance with state law.
SECTION 7.
PUBLICATION
The Town Secretary of the Town of Trophy Club is hereby directed to publish,
the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011
of the Texas Local Government Code.
ORD 2015-06 3
SECTION 8.
EFFECTIVE DATE
This Ordinance shall take effect from and after its date of passage in accordance
with law.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas, this the 14th day of April, 2015.
ATTEST:
Town Secr tary, Holly Fimbres
Town of Tfophy Club, Texas
[SEAL]
own Attorney, Patricia A. Adams
Town of Trophy Club, Texas
Mayor, C. Nick Sanders
Town of Trophy Club, Texas
[SEAL]
O �
AF
ORD 2015-06 4