SRC-TBR S.B. 1497 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1497
By: Ellis, Rodney
Finance
4/4/2001
As Filed


DIGEST AND PURPOSE 

The legislature finds that the United States Congress has enacted the
Mobile Telecommunications Sourcing Act for the purpose of establishing
uniform nationwide sourcing rules for state and local taxation of mobile
telecommunications services.  The legislature recognizes that the federal
act is intended to provide a clarification of sourcing rules that is
revenue-neutral.  As proposed, S.B. 1497 implements the Mobil
Telecommunications Sourcing Act. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 151A, Tax Code, by adding Section 151.01025, as
follows: 

Sec. 151.01015.  (Note: Bill as drafted references both Section 151.01025,
above, and 151.01015, here).  (a)  LEGISLATIVE FINDINGS.  Sets forth
legislative findings. 

(b)  DEFINITIONS.  Defines "act," "enhanced zip code," "home service
provider," and "place of primary use." 

(c)  CUSTOMERS' PROCEDURES AND REMEDIES FOR CORRECTING TAXES AND FEES.
Requires a customer, if the customer believes that an amount of tax or
assignment of place of primary or taxing jurisdiction included on a billing
is erroneous, to notify the home service provider in writing.  Requires the
customer to include in this written notification the street address for her
or his place of primary use, the account name and number for which the
customer seeks a correction of the tax assignment, a description of the
error asserted by the customer, and any other information that the home
service provider reasonably requires to process the request. Requires the
home service provider, within sixty days of receiving a notice under this
section, to review its records and the electronic database or enhanced zip
code used pursuant to Section 3 above to determine the customer's taxing
jurisdiction.  Requires the home service provider, if this review shows
that the amount of tax, assignment of place of primary use or taxing
jurisdiction is in error, to correct the error and refund or credit the
amount of tax erroneously collected from the customer for a period of up to
two years.  Requires the home service provider, if this review shows that
the amount of tax, assignment of place of primary use or taxing
jurisdiction is correct, to provide a written explanation to the customer.
Requires the procedures in this section to be the first course of remedy
available to customers seeking correction of assignment of place of primary
use or taxing jurisdiction, or a refund of or other compensation for taxes
and/or fees erroneously collected by the home service provider. 

(d)  APPLICATION.  Provides that this section applies to the computation of
taxes and fees  under Section 151.0103 (Telecommunications Services), Tax
Code, Section 321.203 (Consumption of Sale), Tax Code, Section 451.404
(Sales and Use Tax), Transportation Code, and Section 56.107 (Universal
Service Fund Surcharge), Utilities Code. 

SECTION 2.  Effective date: September 1, 2001.
    Makes application of this Act prospective to August 1, 2002.