(1) For the purposes Sections 4.250 through 4.280, "utility" shall mean any electric cooperative, people's utility district, privately-owned public utility or heating company.

"Telecommunications utility" has the meaning given that term in ORS 759.005

(2) Any utility other than a telecommunications utility using or occupying any street, alley or highway within the corporate limits of the City without a franchise shall pay a privilege tax for the use and occupancy of any such street, alley or highway as provided in this subsection.

The privilege tax imposed under this subsection shall be 5 percent of the utility's gross revenues earned within the corporate limits of the City for each month. The privilege tax shall be computed as of the commencement of business or upon the expiration of any franchise under which the utility formerly operated. The privilege tax shall be due and payable so long as the utility operates within the City and uses or occupies the streets, alleys or highways.

(3) Any telecommunications utility using or occupying a street, alley or highway within the corporate limits of the City without a franchise shall pay a privilege tax for the use and occupancy of any street, alley or highway.

The privilege tax imposed under this subsection shall be 7 percent of the telecommunications utility's gross revenues earned within the corporate limits of the City for each month. For the purposes of this paragraph, "gross revenues" shall mean all revenues derived from exchange access services, as defined in ORS 401.710, less uncollectibles from such revenues. The privilege tax shall be computed as of the commencement of business or upon the expiration of any franchise under which the telecommunications utility formerly operated. The privilege tax shall be due and payable so long as the telecommunications utility operates within the City and uses or occupies the streets, alleys or highways.

(4) In the event a franchise is granted to any utility subject to the privilege tax herein required and the franchise becomes effective, then the privilege tax shall cease to apply from the effective date of the franchise. The franchise holder shall pay the proportionate earned amount of the privilege tax for the current month. The privilege tax for each calendar month shall be due and payable on the 16th day of the following month, and if not paid, collectible as provided in Section 4.265.