SENATE BILL NO. 192
INTRODUCED BY J. BOHLINGER, M. LINDEEN, K. GILLAN
AN ACT CLARIFYING THAT INTERNET ACCESS SERVICES ARE NOT TAXABLE UNDER THE LICENSE TAX ON TELEPHONE COMPANIES; AMENDING SECTION 15-53-101, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE, A RETROACTIVE APPLICABILITY DATE, AND A CONTINGENT TERMINATION DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-53-101, MCA, is amended to read:
"15-53-101. Definitions -- rate of license tax on telephone companies. (1) As used in this section:
(a) "carrier access service" means the service a local exchange company, as defined in 53-19-302, provides to an
interexchange carrier for the origination or termination of telecommunications; and
(b) "internet access service" means a service that enables users to access content, information, electronic mail, or other services offered over the internet and may also include access to proprietary content, information, and other services as part of a package of services offered to consumers. The term does not include telecommunications services.
(b)(c) "telephone business" means the access and transport, for hire, of two-way communications from point of access
to point of termination, both of which are within Montana, but does not include internet access service.
(2) A license tax of 1.8% is imposed upon the gross revenue in excess of $250 each quarter received by a person in Montana from telephone business in Montana. As used in this section, "gross revenue" does not include:
(a) carrier access service revenue;
(b) revenue from the sale of telephone services to another telephone service provider who uses the services to provide telephone service to the ultimate retail consumer who originates or terminates the transmission;
(c) revenue from the sale, lease, repair, installation, or maintenance of equipment or from the provision of
nontransmission-related services or activities; or
(d) customer access line charges assessed under federal communications commission orders or rules; or
(e) revenue derived from internet access services, including identifiable internet access services provided by a telephone business.
(3) A bill or statement may itemize the tax imposed by subsection (2).
(4) The tax imposed by subsection (2) is due in quarterly installments for the quarters ending, respectively, March 31, June 30, September 30, and December 31 in each year."
Section 2. Coordination instruction -- contingent termination. If House Bill No. 128 is passed and approved, then [this act] terminates January 1, 2000.
Section 3. Effective date. [This act] is effective on passage and approval.
Section 4. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to tax years beginning after December 31, 1998.
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Latest Version of SB 192 (SB0192.ENR)
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