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§ 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.
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    \1\ So in original. Probably should be followed by ``section''.
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    (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.



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