SENATE BILL NO. 494
INTRODUCED BY J. COBB, F. THOMAS, BECK, DOHERTY
AN ACT REVISING THE LAWS RELATED TO THE RETAIL TELECOMMUNICATIONS EXCISE TAX TO MAKE IT REVENUE-NEUTRAL AS COMPARED TO THE TELEPHONE LICENSE TAX AND PROPERTY TAX PROVISIONS THAT IT SUPPLANTED; SUSPENDING THE ADVANCED TELECOMMUNICATIONS INFRASTRUCTURE TAX CREDIT; AMENDING SECTIONS 15-53-129 AND 15-53-202, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE, AN APPLICABILITY DATE, AND A TERMINATION DATE.
WHEREAS, the Retail Telecommunications Excise Tax Act, House Bill No. 128, 56th Legislature (Chapter 426, Laws of 1999), was enacted as a part of the 1999 Legislative Session's economic development package, replacing an archaic telephone license tax and an illogical and confusing array of property tax provisions with an excise tax that would foster Montana's long-term economic growth and ensure that Montana will have the necessary telecommunications infrastructure needed to be competitive for jobs and income for the future; and
WHEREAS, as enacted, the purpose section of the Retail Telecommunications Excise Tax Act, in 15-53-128(4)(c), stated that one of the reasons for imposing a replacement tax was to "preserve the revenue base of the existing property tax system for taxing jurisdictions in the state"; and
WHEREAS, as enacted, in the purpose section of the Retail Telecommunications Excise Tax Act, in 15-53-128(7), the legislature declared a "compelling public need to modify the existing system of property taxation . . . to ensure competitive neutrality and constancy of revenue to taxing jurisdictions in the state of Montana".
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-53-129, MCA, is amended to read:
"15-53-129. Definitions. As used in this part, unless the context requires otherwise, the following definitions apply:
(1) "Customer" or "purchaser" means a person who acquires for consideration retail telecommunications services for use or consumption and not for resale.
(2)(2) "Retail telecommunications" means the two-way transmission of voice, image, data, or other information over
wire, cable, fiber optics, microwave, radio, satellite, or similar facilities that originates or terminates in this state and is
billed to a customer with a Montana service address. The term includes but is not limited to local exchange, long-distance,
two-way paging, wireless telephony, and related services.
(3)(3) (a) "Sales price" means the consideration paid for the distribution, supply, furnishing, sale, transmission, or
delivery of retail telecommunications services to the end-user customer.
(b) Sales price does not include:
(i) an amount added to the customer's bill because of a charge made pursuant to the tax imposed by this part;
(ii) charges added to a customer's bill under 10-4-201, 53-19-311 and 69-3-844;
(iii) federal excise taxes or other federally imposed charges or fees collected for and remitted to a federal government entity;
(iv) a charge for a dishonored check;
(v) a finance or credit charge, penalty or charge for delayed payment, or discount for prompt payment;
(vi) a charge for reconnection of service or for replacement of service construction or relocation of facilities;
(vii) the installation, repair, inspection, or servicing of equipment and wiring located on customer premises;
(viii) bad debt;
(ix) a charge added by a hotel, motel, or similar facility for telecommunications services used in placing calls for guests;
(x) charges paid by inserting coins in coin-operated telecommunications devices; and
(xi) charges for telecommunications services that have been prepaid by a prepaid calling card that enables the origination of calls by using an access number or authorization code.
(4)(4) "Service address" means:
(a) the location from where the retail telecommunications services originated or where the retail telecommunications services are received; or
(b) where there is not a defined location, the location in Montana where the statement of charges for retail telecommunications services is mailed.
(5)(5) "Telecommunications services provider" means a person providing retail telecommunications services."
Section 2. Section 15-53-202, MCA, is amended to read:
"15-53-202. (Temporary) Advanced telecommunications infrastructure tax credit -- temporary suspension. (1)
There Except as provided in subsection (4), there is allowed a tax credit against the tax imposed by part 1 of this chapter for
advanced telecommunications infrastructure improvements in the state made by a telecommunications services provider in
an amount equal to 20% of the total amount of the infrastructure investment.
(2) The tax credit provided for in subsection (1) may not exceed a total of $2 million for all qualified telecommunications services providers in any consecutive 12-month period.
(3) There is no carryback or carryforward of the credit allowed under this section, and the credit must be applied in the year the advanced telecommunications infrastructure improvements were made and may not be refunded if the taxpayer has no tax liability.
(4) The credit allowed under this section may not be claimed for investments in advanced telecommunications infrastructure improvements made after June 30, 2001, and before July 1, 2003. (Terminates July 1, 2004--sec. 8, Ch. 534, L. 1999.)"
Section 3. Effective date. [This act] is effective on passage and approval.
Section 4. Applicability. [This act] applies to federal subscriber line charges and other federally authorized charges and fees collected but not remitted to a federal governmental entity by the telecommunications carrier and to retail telecommunications installation and activation charges made only after June 30, 2001.
Section 5. Termination. [Section 2] terminates July 1, 2003.
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