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

Summary

Treats any state or local tax, charge, or fee that is either a fixed charge per customer or based on the total amounts billed to customers for mobile phone service the same for the rules that follow. That is true whether the tax is charged to the company or to the customer and no matter what the government calls it. Does not cover taxes on a provider’s net income, capital stock, net worth, or property value; taxes applied to an apportioned amount that is not figured per transaction; charges that pay for a provider’s use of public rights-of-way or public property so long as they are not fixed per customer or based on gross charges; a general business tax on gross receipts that the home provider legally owes and that lets the provider use the same sourcing method; fees tied to obligations 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; to sales or resales of mobile service if the Internet Tax Freedom Act would bar a tax on those charges (without saying whether Congress meant that); or to air-ground radiotelephone service as defined in 47 CFR 22.99 as of June 1, 1999.