‘‘(1) allow a home service provider to rely on
the applicable residential or business street address
supplied by the home service provider’s customer;
and
‘‘(2) not hold a home service provider liable for
any additional taxes, charges, or fees based on a dif-
ferent determination of the place of primary use for
taxes, charges or fees that are customarily passed on
to the customer as a separate itemized charge.
‘‘(b) ADDRESS UNDER EXISTING AGREEMENTS.—
Except as provided in section 122, a taxing jurisdiction
shall allow a home service provider to treat the address
used by the home service provider for tax purposes for
any customer under a service contract or agreement in ef-
fect 2 years after the date of enactment of the Mobile
Telecommunications Sourcing Act as that customer’s
place of primary use for the remaining term of such serv-
ice contract or agreement, excluding any extension or re-
newal of such service contract or agreement, for purposes
of determining the taxing jurisdictions to which taxes,
charges, or fees on charges for mobile telecommunications
services are remitted.
‘‘§ 124. Scope; special rules
‘‘(a) ACT DOES NOT SUPERSEDE CUSTOMER’S LI-
ABILITY TO TAXING JURISDICTION.—Nothing in sections
117 through 127 modifies, impairs, supersedes, or author-
izes the modification, impairment, or supersession of, any
law allowing a taxing jurisdiction to collect a tax, charge,
or fee from a customer that has failed to provide its place
of primary use.
‘‘(b) ADDITIONAL TAXABLE CHARGES.—If a taxing
jurisdiction does not otherwise subject charges for mobile
telecommunications services to taxation and if these
charges are aggregated with and not separately stated
from charges that are subject to taxation, then the charges
for nontaxable mobile telecommunications services may be
subject to taxation unless the home service provider can
reasonably identify charges not subject to such tax,
charge, or fee from its books and records that are kept
in the regular course of business.
‘‘(c) NONTAXABLE CHARGES.—If a taxing jurisdic-
tion does not subject charges for mobile telecommuni-
cations services to taxation, a customer may not rely upon
the nontaxability of charges for mobile telecommuni-
cations services unless the customer’s home service pro-
vider separately states the charges for nontaxable mobile
telecommunications services from taxable charges or the
home service provider elects, after receiving a written re-
quest from the customer in the form required by the pro-
vider, to provide verifiable data based upon the home serv-
ice provider’s books and records that are kept in the reg-
ular course of business that reasonably identifies the non-
taxable charges.
‘‘§ 125. Definitions
‘‘In sections 117 through 127 of this title:
‘‘(1) CHARGES
FOR
MOBILE
TELECOMMUNI-
CATIONS SERVICES.—The term ‘charges for mobile
telecommunications services’ means any charge for,
or associated with, the provision of commercial mo-
bile radio service, as defined in section 20.3 of title
47 of the Code of Federal Regulations as in effect
on June 1, 1999, or any charge for, or associated
with, a service provided as an adjunct to a commer-
cial mobile radio service, that is billed to the cus-
tomer by or for the customer’s home service provider
regardless of whether individual transmissions origi-
nate or terminate within the licensed service area of
the home service provider.
‘‘(2) CUSTOMER.—
‘‘(A) IN GENERAL.—The term ‘customer’
means—
‘‘(i) the person or entity that con-
tracts with the home service provider for
mobile telecommunications services; or
‘‘(ii) if the end user of mobile tele-
communications services is not the con-
tracting party, the end user of the mobile
telecommunications service, but this clause
applies only for the purpose of determining
the place of primary use.
‘‘(B) The term ‘customer’ does not
include—
‘‘(i) a reseller of mobile telecommuni-
cations service; or
‘‘(ii) a serving carrier under an ar-
rangement to serve the customer outside
the home service provider’s licensed service
area.
‘‘(3) DESIGNATED DATABASE PROVIDER.—The
term ‘designated database provider’ means a cor-
poration, association, or other entity representing all
the political subdivisions of a State that is—
‘‘(A) responsible for providing an electronic
database prescribed in section 120(a) if the
State has not provided such electronic database;
and
‘‘(B) approved by municipal and county as-
sociations or leagues of the State whose respon-
sibility it would otherwise be to provide such
database prescribed by sections 117 through
127 of this title.
‘‘(4) ENHANCED
ZIP
CODE.—The term ‘en-
hanced zip code’ means a United States postal zip
code of 9 or more digits.
‘‘(5) HOME
SERVICE
PROVIDER.—The term
‘home service provider’ means the facilities-based
carrier or reseller with which the customer contracts
for the provision of mobile telecommunications serv-
ices.
‘‘(6) LICENSED SERVICE AREA.—The term ‘li-
censed service area’ means the geographic area in
which the home service provider is authorized by law
or contract to provide commercial mobile radio serv-
ice to the customer.
‘‘(7) MOBILE
TELECOMMUNICATIONS
SERV-
ICE.—The term ‘mobile telecommunications service’
means commercial mobile radio service, as defined in
section 20.3 of title 47 of the Code of Federal Regu-
lations as in effect on June 1, 1999.
‘‘(8) PLACE OF PRIMARY USE.—The term ‘place
of primary use’ means the street address representa-
tive of where the customer’s use of the mobile tele-
communications service primarily occurs, which must
be—
‘‘(A) the residential street address or the
primary business street address of the cus-
tomer; and
‘‘(B) within the licensed service area of the
home service provider.
‘‘(9) PREPAID
TELEPHONE
CALLING
SERV-
ICES.—The term ‘prepaid telephone calling service’
means the right to purchase exclusively tele-
communications services that must be paid for in
advance, that enables the origination of calls using
an access number, authorization code, or both,
whether manually or electronically dialed, if the re-
maining amount of units of service that have been
prepaid is known by the provider of the prepaid
service on a continuous basis.
‘‘(10) RESELLER.—The term ‘reseller’—
‘‘(A) means a provider who purchases tele-
communications services from another tele-
communications service provider and then re-
sells, uses as a component part of, or integrates
the purchased services into a mobile tele-
communications service; and
‘‘(B) does not include a serving carrier
with which a home service provider arranges for
the services to its customers outside the home
service provider’s licensed service area.
‘‘(11) SERVING
CARRIER.—The term ‘serving
carrier’ means a facilities-based carrier providing
mobile telecommunications service to a customer
outside a home service provider’s or reseller’s li-
censed service area.
‘‘(12) TAXING JURISDICTION.—The term ‘tax-
ing jurisdiction’ means any of the several States, the
District of Columbia, or any territory or possession
of the United States, any municipality, city, county,
township, parish, transportation district, or assess-
ment jurisdiction, or any other political subdivision
within the territorial limits of the United States with
the authority to impose a tax, charge, or fee.
‘‘§ 126. Nonseverability
‘‘If a court of competent jurisdiction enters a final
judgment on the merits that—
‘‘(1) is based on Federal law;
‘‘(2) is no longer subject to appeal; and
‘‘(3) substantially limits or impairs the essential
elements of sections 117 through 127 of this title;
then sections 117 through 127 of this title are invalid and
have no legal effect ab initio.
‘‘§ 127. No inference
‘‘(a) INTERNET TAX FREEDOM ACT.—Nothing in
sections 117 through this section of this title shall be con-
strued as bearing on Congressional intent in enacting the
Internet Tax Freedom Act or to modify or supersede the
operation of such Act.
‘‘(b) TELECOMMUNICATIONS ACT OF 1996.—Nothing
in sections 117 through this section of this title shall limit
or otherwise affect the implementation of the Tele-
communications Act of 1996 or the amendments made by
such Act.’’.
(b) TECHNICAL AMENDMENT.—The table of sections
of chapter 4 of title 4, United States Code, is amended
by adding the following after the item relating to section
116:
‘‘117. Rules for determining State and local government treatment of charges
related to mobile telecommunications services.
‘‘118. Sourcing rules.
‘‘119. Limitations.
‘‘120. Electronic databases for nationwide standard numeric jurisdictional
codes.
‘‘121. Procedure if no electronic database provided.
‘‘122. Correction of erroneous data for place of primary use.
‘‘123. Determination of place of primary use.
‘‘124. Scope; special rules.
‘‘125. Definitions.
‘‘126. Nonseverability.
‘‘127. No inference.’’.
SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendment made by this Act
shall take effect on the date of the enactment of this Act.
(b) APPLICATION OF ACT.—The amendment made by
this Act shall apply only with respect to telecommuni-
cations services provided after the 1st day of the 1st
month beginning more than 2 years after the date of en-
actment of this Act.
Æ