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SPONSOR: |
Whitaker |
DATE TYPED: |
02/05/02 |
HB |
299 |
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SHORT TITLE: |
Mobile Telecommunications Services Taxes |
SB |
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ANALYST: |
Valenzuela |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
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FY02 |
FY03 |
FY02 |
FY03 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
LFC files
General Services Department (GSD)
Public Regulation Commission (PRC)
SUMMARY
Synopsis
of Bill
House Bill 299 aligns
New Mexico statutes to conform with the federal law regarding taxation of
mobile telecommunication services.
Significant
Issues
Many state tax
laws applicable to the telecommunication services were written to conform to a
U.S. Supreme Court’s decision in Goldberg v. Sweet case, where the court
ruled that for states to have jurisdiction to impose taxes on interstate
telecommunications, the call must either originate or terminate in a given
state and the service address to which the call is charged must also be in that
state. The complexity of applying the Goldberg method to wireless
telecommunications arises from the inherent difficulty in identifying the precise
location from which a call is placed.
In July 2000,
Congress approved the Mobile Telecommunications Sourcing Act (Public Law
106-252, codified at 4 U.S.C Sections 116 through 126). House Bill 299 recognizes that the Mobile
Telecommunications Sourcing Act was passed to establish sourcing requirements
for state and local taxation of mobile telecommunication services. In general,
the bill provides that taxes on mobile
telecommunications
services shall be collected and
remitted to the jurisdiction where the customer's primary use of the services
occurs, irrespective of where the mobile telecommunications services originate,
terminate, or pass through.
FISCAL IMPLICATIONS
House Bill 299 does
not carry an appropriation. Both the PRC and GSD state that enactment of the
bill will have no fiscal or administrative impact on the agencies.
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