§116 — Title 4 Flag and Seal; Seat of Government; States | U.S. Code

Summary

Sets rules for when a state or local tax, charge, or fee is treated as a fixed per-customer charge or as based on the gross amounts charged for mobile phone service. It applies whether the charge is imposed on the seller or the customer and whatever name the government uses. It does not cover taxes on a provider’s income, capital stock, net worth, or property; taxes that are apportioned instead of decided by each sale; fees that pay for use of public rights-of-way (so long as they aren’t charged per customer or on gross charges); certain general business taxes that meet specific rules; fees under section 254 of the Communications Act of 1934; or fees imposed by the Federal Communications Commission. It also does not apply to where prepaid calling services are taxed, does not change tax treatment when the Internet Tax Freedom Act bans a tax on a sale or resale, and does not apply to air‑to‑ground radiotelephone service as defined in 47 C.F.R. §22.99 as of June 1, 1999.

Title 4, §116

Flag and Seal; Seat of Government; States — Source: USLM XML via OLRC

(a)This section through 11 So in original. Probably should be followed by “section”. 126 of this title apply to any tax, charge, or fee levied by a taxing jurisdiction as a fixed charge for each customer or measured by gross amounts charged to customers for mobile telecommunications services, regardless of whether such tax, charge, or fee is imposed on the vendor or customer of the service and regardless of the terminology used to describe the tax, charge, or fee.

(b)This section through 1 126 of this title do not apply to—

(1)any tax, charge, or fee levied upon or measured by the net income, capital stock, net worth, or property value of the provider of mobile telecommunications service;

(2)any tax, charge, or fee that is applied to an equitably apportioned amount that is not determined on a transactional basis;

(3)any tax, charge, or fee that represents compensation for a mobile telecommunications service provider’s use of public rights of way or other public property, provided that such tax, charge, or fee is not levied by the taxing jurisdiction as a fixed charge for each customer or measured by gross amounts charged to customers for mobile telecommunication services;

(4)any generally applicable business and occupation tax that is imposed by a State, is applied to gross receipts or gross proceeds, is the legal liability of the home service provider, and that statutorily allows the home service provider to elect to use the sourcing method required in this section through 1 126 of this title;

(5)any fee related to obligations under section 254 of the Communications Act of 1934; or

(6)any tax, charge, or fee imposed by the Federal Communications Commission.

(c)This section through 1 126 of this title—

(1)do not apply to the determination of the taxing situs of prepaid telephone calling services;

(2)do not affect the taxability of either the initial sale of mobile telecommunications services or subsequent resale of such services, whether as sales of such services alone or as a part of a bundled product, if the Internet Tax Freedom Act would preclude a taxing jurisdiction from subjecting the charges of the sale of such services to a tax, charge, or fee, but this section provides no evidence of the intent of Congress with respect to the applicability of the Internet Tax Freedom Act to such charges; and

(3)do not apply to the determination of the taxing situs of air-ground radiotelephone service as defined in section 22.99 of title 47 of the Code of Federal Regulations as in effect on June 1, 1999.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 254 of the Communications Act of 1934, referred to in subsec. (b)(5), is classified to section 254 of Title 47, Telecommunications. The Internet Tax Freedom Act, referred to in subsec. (c)(2), is title XI of Pub. L. 105–277, div. C, Oct. 21, 1998, 112 Stat. 2681–719, which is set out as a note under section 151 of Title 47, Telecommunications.

Statutory Notes and Related Subsidiaries

Effective Date

Application of Amendment Pub. L. 106–252, § 3, July 28, 2000, 114 Stat. 633, provided that: “(a)

Effective Date

.—Except as provided in subsection (b), this Act [enacting this section and sections 117 to 126 of this title and provisions set out as a note under section 1 of this title] and the amendment made by this Act shall take effect on the date of the enactment of this Act [

July 28, 2000]. “(b) Application of Act.—The amendment made by this Act [enacting this section and sections 117 to 126 of this title] shall apply only to customer bills issued after the first day of the first month beginning more than 2 years after the date of the enactment of this Act [

July 28, 2000].”

§116 Rules for Determining State and Local Government Treatment of Charges Related to Mobile Telecommunications Services

Summary

Title 4, §116

Notes & Related Subsidiaries

Editorial Notes

References in Text

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata