About the Tax
Section 22-121 of the Wheat Ridge Code of Law imposes an occupation tax on providers of basic local exchange service, or its equivalent, in Wheat Ridge.
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.
Code Changes
Please see an integrated version of the code here, Ordinance 1776 that was amended on October 4, 2023. The City’s online municipal code is updated biannually and therefore the recent amendments to Chapter 22 have not yet been integrated online. However, they are now in effect. Among several code changes, the definition of basic local exchange services was broadened to include cellular and mobile radio. Also, the code changes included the elimination of the incumbent service provider, Lumen, and the method for determining the annual rate. The annual rate is now determined based on an estimate of all basic local exchange service lines in Wheat Ridge. This code change results in a $4.69 per line rate reduction from $8.24 in 2023 to $3.55 in 2024.
The Amount of Tax
In 2024, the rate is $3.55 per line per month, based on basic local exchange services as defined in the code.
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.