By: Ellis S.B. No. 1497
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sourcing of state and local taxation of mobile
1-3 telecommunications services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 151, Tax Code, is amended
1-6 by adding Section 151.01025 to read as follows:
1-7 Sec. 151.01015. (a) LEGISLATIVE FINDINGS. The legislature
1-8 finds that the United States Congress has enacted the Mobile
1-9 Telecommunications Sourcing Act for the purpose of establishing
1-10 uniform nationwide sourcing rules for state and local taxation of
1-11 mobile telecommunications services. In general, the rules provide
1-12 that taxes on mobile telecommunications services shall be paid to
1-13 the jurisdiction where the customer primarily uses the service,
1-14 irrespective of where the mobile telecommunications services
1-15 originate, terminate, or pass through. The legislature desires to
1-16 adopt implementing legislation governing taxation by the state and
1-17 by affected local taxing jurisdictions within the state. The
1-18 legislature recognizes that the federal act is intended to provide
1-19 a clarification of sourcing rules that is revenue-neutral. By
1-20 passing this legislation in Texas, the legislature desires to
1-21 implement the Act in the state, and to make state and local
1-22 government officials aware of its provisions.
1-23 (b) DEFINITIONS. In this section:
2-1 (1) "Act" refers to the "Mobile Telecommunications
2-2 Sourcing Act," P.L. 106-252, codified at 4 U.S.C. Sections 116-126.
2-3 (2) "Enhanced zip code" means a United States postal
2-4 zip code of nine or more digits.
2-5 (3) "Home service provider" means the facilities-based
2-6 carrier or reseller with which the customer contracts for the
2-7 provision of mobile telecommunications services.
2-8 (4) "Place of primary use" means the street address
2-9 representative of where the customer's use of the mobile
2-10 telecommunications service primarily occurs, which must be:
2-11 (A) the residential street address or the
2-12 primary business street address of the customer; and
2-13 (B) within the licensed service area of the home
2-14 service provider.
2-15 (c) CUSTOMERS' PROCEDURES AND REMEDIES FOR CORRECTING TAXES
2-16 AND FEES. (1) If a customer believes that an amount of tax or
2-17 assignment of place of primary or taxing jurisdiction included on a
2-18 billing is erroneous, the customer shall notify the home service
2-19 provider in writing. The customer shall include in this written
2-20 notification the street address for her or his place of primary
2-21 use, the account name and number for which the customer seeks a
2-22 correction of the tax assignment, a description of the error
2-23 asserted by the customer, and any other information that the home
2-24 service provider reasonably requires to process the request.
2-25 Within sixty days of receiving a notice under this section, the
2-26 home service provider shall review its records and the electronic
3-1 database or enhanced zip code used pursuant to Section 3 above to
3-2 determine the customer's taxing jurisdiction. If this review shows
3-3 that the amount of tax, assignment of place of primary use or
3-4 taxing jurisdiction is in error, the home service provider shall
3-5 correct the error and refund or credit the amount of tax
3-6 erroneously collected from the customer for a period of up to two
3-7 years. If this review shows that the amount of tax, assignment of
3-8 place of primary use or taxing jurisdiction is correct, the home
3-9 service provider shall provide a written explanation to the
3-10 customer.
3-11 (2) The procedures in this section shall be the first
3-12 course of remedy available to customers seeking correction of
3-13 assignment of place of primary use or taxing jurisdiction, or a
3-14 refund of or other compensation for taxes and/or fees erroneously
3-15 collected by the home service provider.
3-16 (d) APPLICATION. This section applies to the computation of
3-17 taxes and fees under:
3-18 (1) Section 151.0103, Tax Code
3-19 (2) Section 321.203, Tax Code
3-20 (3) Section 451.404, Transportation Code
3-21 (4) Section 56.107, Utilities Code
3-22 SECTION 2. This act takes effect September 1, 2001, provided
3-23 that the amendments made by this act with respect to tax
3-24 liabilities shall apply only to charges on or revenues from
3-25 customer bills issued on or after August 1, 2002.