Section 22-121 of the Wheat Ridge Code of Laws imposes an occupation tax on providers of basic local exchange service, or its equivalent, in Wheat Ridge. An equivalent exists if a provider of other than land-line telecommunications service is provided to a user who does not have a land line at the address of primary use.
The tax is a pass-through tax, meaning although providers are solely liable for it they may pass the tax on to their customers. A customer will never be assessed the telecommunications occupation tax directly.
The Amount of Tax
In 2016 the rate is $2.84 per line per month, based on the incumbent's legislated tax of $190,575 divided by the number of basic local exchange lines it provides in Wheat Ridge as of June 30th of each year, divided by 12. In 2017 the tax will be $3.22 per line per month, based on the same calculation.
Other Notes About the Telecommunications Occupation Tax
Because it is a pass-through tax, the telecommunications occupation tax is not subject to exemption to end-users of phone services.