Sec.  32.7240   Operating other taxes.

   (a) This account shall be charged and Account 4080, Other Taxes—Accrued,
   shall be credited for all taxes, other than Federal, state and local income
   taxes and payroll related taxes, related to regulated operations applicable
   to current periods. Among the items includable in this account are property,
   gross receipts, franchise and capital stock taxes; this account shall also
   reflect subsequent adjustments to amounts previously charged.

   (b)  Special assessments for street and other improvements and special
   benefit taxes, such as water taxes and the like, shall be included in the
   operating expense accounts or investment accounts, as may be appropriate.

   (c) Discounts allowed for prompt payment of taxes shall be credited to the
   account to which the taxes are chargeable.

   (d)  Interest  on tax assessments which are not paid when due shall be
   included in Account 7500, Interest and related items.

   (e) Taxes paid by the company under tax-free covenants on indebtedness shall
   be charged to Account 7300, Nonoperating income and expense.

   (f) Sales and use taxes shall be accounted for, so far as practicable, as
   part of the cost of the items to which the taxes relate.

   (g) Taxes on rented telecommunications plant which are borne by the lessee
   shall be credited by the owner to Account 5200, Miscellaneous revenue, and
   shall be charged by the lessee to the appropriate Plant Specific Operations
   Expense account.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5698 , Feb. 6, 2002]