147 
clude only the revenue attributable to the video 
service, which shall be reflected on the books and 
records of the video service provider kept in the 
regular course of business. 
‘‘(D) EXCLUSIONS.—Gross revenue of a 
video service provider (or an affiliate to the ex-
tent otherwise included in the gross revenue of 
the video service provider under subparagraph 
(B)) does not include— 
‘‘(i) any revenue not actually received, 
even if billed, such as bad debts, net of any 
recoveries of bad debts; 
‘‘(ii) refunds, rebates, credits, or dis-
counts to subscribers or a municipality to 
the extent not already excluded under clause 
(i); 
‘‘(iii) subject to subparagraph (C), any 
revenues received by a video service provider 
or its affiliates from the provision of serv-
ices or capabilities other than video service, 
including— 
‘‘(I) voice, Internet access, or 
other broadband-enabled applications 
that are not video service; and 
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148 
‘‘(II) services, capabilities, and 
applications that are sold or provided 
as part of a package or bundle of serv-
ices or capabilities, or that are func-
tionally integrated with video service; 
‘‘(iv) any revenues received by a video 
service provider or its affiliates for the pro-
vision of directory or Internet advertising, 
including yellow pages, white pages, banner 
advertisement, and electronic publishing; 
‘‘(v) any costs attributable to the pro-
vision of video services to subscribers at no 
charge, including the provision of such serv-
ices to public institutions without charge; 
‘‘(vi) any revenue paid by subscribers 
to a home shopping programmer directly 
from the sale of merchandise through any 
home shopping channel offered as part of 
the video service provider’s video services, 
but not excluding any commissions that are 
paid to the video service provider as com-
pensation for promotion or exhibition of 
any product or service on the provider’s 
video service, such as a home shopping or 
similar channel; 
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‘‘(vii) any revenue forgone from the 
provision of video service at no charge to 
any person other than forgone revenue ex-
changed for trades, barters, services, or other 
items of value; 
‘‘(viii) any tax, fee, or assessment of 
general applicability imposed on a sub-
scriber or transaction by Federal, State, or 
local government that is required to be col-
lected by the video service provider and re-
mitted to the taxing authority, including 
sales taxes, use taxes, and utility user taxes; 
‘‘(ix) any revenue from the sale of cap-
ital assets or surplus equipment; 
‘‘(x) the reimbursement by program-
mers for marketing costs actually incurred 
by a video service provider for the introduc-
tion of new programming; or 
‘‘(xi) any revenue from the sale of 
video services for resale to the extent that 
the purchaser certifies in writing that it 
will— 
‘‘(I) resell the service; and 
‘‘(II) pay any applicable fran-
chise fee with respect thereto.’’. 
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