General compensation to the city.

Memphis Code of Ordinances § 6-28-20

in effect

Sec. 6-28-20. - General compensation to the city. A. General compensation. The city finds that the public streets, alleys and public rights-of-way to be used by grantee for the purpose of reselling telecommunication services derived from telecommunication systems operated within the boundaries of the city are valuable public properties, acquired and maintained by the city at great expense to its taxpayers, and that the grant to grantee of the use of the public streets, alleys and rights-of-way is a valuable property right, without which the grantee would be required to invest substantial capital in public right-of-way costs and acquisitions; the grantee agrees to pay to the city as general compensation during each year of the franchise agreement, an amount equal to five percent of gross revenues for each quarter of a compensation year. Grantee shall forward by check or money order an amount equal to the quarterly payment by the 15th day of the second calendar month immediately following the close of the calendar quarter for which the payment is calculated. Any necessary prorations shall be made. B. Recalculation at end of compensation year. 1. At the end of each compensation year, grantee shall recalculate the total general compensation actually due. If additional amounts are due the city by grantee, such amounts shall be paid by the 15th day of the second month of the compensation year following the compensation year during which such amounts were originally due. If amounts are found to be due the grantee by the city, such amounts shall be credited by the 15th day of the second month of the compensation year following the compensation year during which such amounts were originally due. Any necessary prorations shall be made. The compensation set forth in this section shall be exclusive of and in addition to all special assessments and taxes of whatever nature, including, but not limited to, ad valorem taxes. In the event any quarterly payment is made after noon on date due, grantee shall pay a late payment penalty of the greater of: (i) $100.00; or (ii) simple interest at the highest rate allowable from time to time by Tennessee law multiplied by the total amount past due for the actual number of days elapsed. 2. Payment of money under this section shall not in any way limit or inhibit any of the privileges or rights of the city, whether under this chapter or otherwise. 3. Grantee shall file annually with the director of finance and administration no later than 90 days after the end of the grantee's fiscal year, an audited statement of revenues (for that year) attributable to the operations of the grantee's system, within the city pursuant to this chapter. This statement shall present a detailed breakdown of gross revenues and uncollectible accounts for the year. 4. Any transaction which has the effect of circumventing payment of required franchise fees and/or evasion of payment of franchise fees by noncollecting or nonreporting of gross revenues, bartering or any other means, which evade the actual collection of revenues for business pursued by grantee, is prohibited. (Code 1985, § 10-156; Ord. No. 4398, § 21, 11-19-1996)

Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/code_of_ordinances?nodeId=TIT6BULIRE_CH6-28FIOPTEREFR_S6-28-20GECOCIFetched: 10/28/2026