H.P. 807 - L.D. 1130
An Act to Implement the Recommendations of the Task Force to Study Telecommunications Taxation
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §112, sub-§9-A is enacted to read:
9-A. Review of telecommunications taxation. By January 1, 2001 and January 1, 2004, the assessor shall review the provisions of this Title relating to the taxation of telecommunications services including the taxation of electronic commerce. The review must include an analysis of the impact of structural and technological changes in the telecommunications industry and a review of federal and other national activities relating to the taxation of telecommunications services and electronic commerce. Before issuing a final report, the assessor shall solicit comments from the Public Utilities Commission, the Public Advocate, the Maine Science and Technology Foundation, the Department of Economic and Community Development, businesses providing and using telecommunications services and electronic commerce, organizations representing municipal officials and members of the public. The assessor shall submit a report by January 1, 2001 and January 1, 2004 to the joint standing committee of the Legislature having jurisdiction over taxation matters containing the results of the review required by this subsection, the assessor's recommendations regarding changes to the laws relating to the taxation of telecommunications services and electronic commerce and a summary of significant comments received by the assessor during the review.
This subsection is repealed January 2, 2004.
Sec. 2. 36 MRSA §1752, sub-§§7-D and 8-B are enacted to read:
7-D. Network elements. "Network elements" means features, functions and capabilities that are provided by a telecommunications carrier to another telecommunications carrier including subscriber numbers, databases, signaling systems and information sufficient for billing and collection or used in the transmission, routing or other provisions of a telecommunications service.
8-B. Prepaid calling arrangement. "Prepaid calling arrangement" means the right to purchase exclusively telecommunications services, which must be paid for in advance, that enables the origination of calls using an access number or authorization code. The sale or recharge of the service is considered a sale within the State if the transfer for consideration takes place at the vendor's place of business in the State. If the sale or recharge of a prepaid calling arrangement does not take place at the vendor's place of business, the sale or recharge is deemed to take place at the customer's shipping address, or if there is no item shipped, at the customer's billing address or the location associated with the customer's mobile telephone number. The sale of the service is deemed to occur on the date of the transfer for consideration of the service.
Sec. 3. 36 MRSA §1752, sub-§11, ¶B, as repealed and replaced by PL 1995, c. 281, §12 and affected by §42, is amended to read:
B. "Retail sale" does not include:
(1) Any casual sale;
(2) Any sale by a personal representative in the settlement of an estate, unless the sale is made through a retailer, or unless the sale is made in the continuation or operation of a business;
(3) The sale, to a person engaged in the business of renting automobiles, of automobiles, integral parts of automobiles or accessories to automobiles, for rental or for use in an automobile rented on a short-term basis;
(4) The sale, to a person engaged in the business of renting video tapes and video equipment, of video tapes or video equipment for rental; or
(5) The sale, to a person engaged in the business of renting or leasing automobiles, of automobiles for rental or lease for one year or more.; or
(6) The sale, to a person engaged in the business of providing cable television services, of cable converter boxes for rental or lease.
Sec. 4. 36 MRSA §1752, sub-§17-A, ¶C, as enacted by PL 1987, c. 497, §25, is amended to read:
C. Telephone or telegraph service Telecommunications services;
Sec. 5. 36 MRSA §1752, sub-§17-A, ¶G, as amended by PL 1993, c. 701, §4, is further amended to read:
G. Rental of video tapes and video equipment; and
Sec. 6. 36 MRSA §1752, sub-§17-A, ¶H, as amended by PL 1995, c. 281, §14 and affected by §42, is further amended to read:
H. Rental or lease of an automobile.; and
Sec. 7. 36 MRSA §1752, sub-§17-A, ¶I is enacted to read:
I. Prepaid calling arrangements.
Sec. 8. 36 MRSA §1752, sub-§18-A, as amended by PL 1997, c. 668, §22, is repealed.
Sec. 9. 36 MRSA §1752, sub-§18-B, as amended by PL 1997, c. 668, §23, is repealed.
Sec. 10. 36 MRSA §1752, sub-§§18-C and 18-D are enacted to read:
18-C. Telecommunications equipment. "Telecommunications equipment" means any 2-way interactive communications device, system or process for transmitting or receiving signals and capable of exchanging audio, video, data or textual information. "Telecommunications equipment" does not include computers, except those components of a computer used primarily and directly as a 2-way interactive communications device capable of exchanging audio, video, data or textual information.
18-D. Telecommunications services. "Telecommunications services" means all telecommunications services as described in this subsection.
A. "Telecommunications services" includes:
(1) The provision of 2-way interactive communications through the use of telecommunications equipment; or
(2) The installation, maintenance or repair of telecommunications equipment.
B. "Telecommunications services" does not include:
(1) Service originating or terminating outside this State;
(2) Access services;
(3) Directory advertising services;
(4) The sale of unbundled network elements for use in the provision of telecommunications services;
(5) For leases entered into on or after October 1, 1996, "telecommunications ser-vices" does not include the lease of telecommunications equipment; or
(6) A prepaid calling arrangement.
Sec. 11. 36 MRSA §1811, 2nd ¶, as amended by PL 1977, c. 198, §6, is further amended to read:
The tax imposed upon the sale and distribution of gas, water or electricity, or telephone or telegraph service telecommunications services, by any public utility, the rates for which sale and distribution are established by the Public Utilities Commission, shall must be added to the rates so established. No tax shall may be imposed upon the sale or use of electrical energy, or water stored for the purpose of generating electricity, when the sale is to or by a wholly owned subsidiary by or to its parent corporation, except for electrical energy or water purchased for resale to or by such wholly owned subsidiary.
Effective September 18, 1999, unless otherwise indicated.
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