Section 38
SEC. 38. Section 267 of the National Internal Revenue Code is hereby renumbered and amended to read as follows: “SEC. 227. Tax on franchises. – [a] In general. – There shall be collected in respect to all franchises, upon the gross receipts from the business covered by the law granting the franchise, a tax of five percent on such taxes, charges, and percentages as are specified in the special charters of the grantees upon whom such franchise are conferred, whichever is higher, unless the provisions thereof preclude the imposition of a higher tax. For the purpose of facilitating the assessment of this tax, reports shall be made by the respective holders of the franchises in such form and at such times, as shall be required by regulations. “The taxes, charges, and percentages on franchises, shall be assessed, collected by and paid to the Commissioner or any of his collection agents, any provision in the franchise to the contrary notwithstanding, and shall be due and payable as specified in the particular franchise, or, in case no time limit is specified therein, the provisions of Section 162 shall apply.” “[b] Tax on electric franchise holders. – Any provision of law or local ordinance to the contrary notwithstanding, the franchise tax payable by all grantees of franchise to generate, distribute and sell electric current for light, heat and power and for the manufacture, distribution and sale of city gas shall be 2% of their gross receipts received from the sale of electric current and from transactions incident to the generation, distribution and sale of electric current and of manufactured city gas. “Such franchise tax shall be payable to the Commissioner of Internal Revenue, or his duly authorized representative, on or before the twentieth day of the month following the end of each calendar quarter or month, as may be provided in the respective franchise or pertinent municipal regulation and shall, any provision of the Local Tax Code or any other law to the contrary notwithstanding, be in lieu of all taxes and assessments of whatever nature imposed by any local authority on earning, receipt, income and privilege of generation, distribution and sale of electric current and of manufactured city gas. “[c] Filing of returns and verification thereof. – The returns of all franchise grantees subject to tax under this section or under their respective franchises shall be filed with and subject to audit by the Bureau of Internal Revenue, any provision of existing law to the contrary notwithstanding.”