§ 116. — Rules for determining State and local government treatment of charges related to mobile telecommunications services.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 4USC116]
TITLE 4--FLAG AND SEAL, SEAT OF GOVERNMENT, AND THE STATES
CHAPTER 4--THE STATES
Sec. 116. Rules for determining State and local government
treatment of charges related to mobile telecommunications
services
(a) Application of This Section Through Section 126.--This section
through \1\ 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.
---------------------------------------------------------------------------
\1\ So in original. Probably should be followed by ``section''.
---------------------------------------------------------------------------
(b) General Exceptions.--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) Specific Exceptions.--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.
(Added Pub. L. 106-252, Sec. 2(a), July 28, 2000, 114 Stat. 626.)
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, Telegraphs,
Telephones, and Radiotelegraphs.
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, Telegraphs,
Telephones, and Radiotelegraphs.
Effective Date; Application of Amendment
Pub. L. 106-252, Sec. 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].''
Section Referred to in Other Sections
This section is referred to in sections 117, 118, 123, 124, 125, 126
of this title.
