View all text of Chapter 4 [§ 101 - § 126]

§ 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
1 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)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, § 2(a), July 28, 2000, 114 Stat. 626.)