Section 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