HP0731, LD 1056, item 2, Document Text

Amend the bill by striking out all of section 1.

Amend the bill by inserting after section 2 the following:

‘Sec. 3. 25 MRSA §2921, sub-§13-A is enacted to read:

13-A. Prepaid wireless telecommunications service consumer. "Prepaid wireless telecommunications service consumer" or "prepaid wireless consumer" means a person who purchases prepaid wireless telecommunications service in a retail transaction.’

Amend the bill by striking out all of section 6 and inserting the following:

‘Sec. 6. 25 MRSA §2927, sub-§1-B, as amended by PL 2007, c. 637, §1, is repealed.

Amend the bill by inserting after section 7 the following:

‘Sec. 7. 25 MRSA §2927, sub-§1-D is enacted to read:

1-D. Funding. The activities authorized under this chapter are funded through:

A. The statewide E-9-1-1 surcharge under subsection 1-E levied on:

(1) Each residential and business telephone exchange line, including private branch exchange lines and Centrex lines;

(2) Semipublic coin and public access lines;

(3) Customers of interconnected voice over Internet protocol service; and

(4) Customers of cellular or wireless telecommunications service that is not prepaid wireless telecommunications service; and

B. The statewide prepaid wireless E-9-1-1 surcharge under subsection 1-F levied on prepaid wireless telecommunication service consumers.’

Amend the bill by striking out all of sections 8 and 9 and inserting the following:

‘Sec. 8. 25 MRSA §2927, sub-§1-E is enacted to read:

1-E. Statewide E-9-1-1 surcharge. The statewide E-9-1-1 surcharge is governed by this subsection.

A. The statewide E-9-1-1 surcharge is 30¢ per month per line or number. The statewide E-9-1-1 surcharge may not be imposed on more than 25 lines or numbers per customer billing account.

B. The statewide E-9-1-1 surcharge must be collected from the customer according to subsection 1-D, paragraph A on a monthly basis by each local exchange telephone utility, cellular or wireless telecommunications service provider and interconnected voice over Internet protocol service provider and be shown separately as a statewide E-9-1-1 surcharge on the customer's bill.

C. The place of residence of cellular or wireless telecommunications service customers who are not prepaid wireless telecommunications service consumers must be determined according to the sourcing rules for mobile telecommunications services as set forth in Title 36, section 2556.

Sec. 9. 25 MRSA §2927, sub-§1-F is enacted to read:

1-F. Statewide prepaid wireless telecommunications service E-9-1-1 surcharge. The statewide prepaid wireless telecommunications service E-9-1-1 surcharge, referred to in this subsection as "the prepaid wireless E-9-1-1 surcharge," is governed by this subsection.

A. The prepaid wireless E-9-1-1 surcharge is 30¢ per retail transaction.

B. The prepaid wireless E-9-1-1 surcharge must be collected by the seller from the prepaid wireless consumer according to subsection 1-D, paragraph B with respect to each retail transaction occurring in this State. The amount of the prepaid wireless E-9-1-1 surcharge must be separately stated on an invoice, receipt or similar document that is provided to the prepaid wireless consumer by the seller when practicable. In circumstances in which disclosure of the E-9-1-1 surcharge on an invoice, receipt or similar document is not practicable, the seller must otherwise make information available to the consumer regarding the amount of the E-9-1-1 prepaid surcharge.

C. For purposes of paragraph B, a retail transaction that is effected in person by a prepaid wireless consumer at the business location of the seller is treated as occurring in this State if that business location is in this State. Any other retail transaction must be treated as occurring in this State if the retail transaction is treated as occurring in this State for the purposes of Title 36, section 1752, subsection 8-B.

D. The prepaid wireless E-9-1-1 surcharge is the liability of the prepaid wireless consumer and not of the seller or of any prepaid wireless telecommunications service provider, except that the seller is liable to remit all prepaid wireless E-9-1-1 surcharges that the seller collects from prepaid wireless consumers as provided in this subsection, including all such charges that the seller is deemed to collect when the amount of the surcharge has not been separately stated on an invoice, receipt or similar document provided to the prepaid wireless consumer by the seller.

E. The amount of the prepaid wireless E-9-1-1 surcharge that is collected by a seller from a prepaid wireless consumer, whether or not such amount is separately stated on an invoice, receipt or similar document provided to the prepaid wireless consumer by the seller, may not be included in the base for measuring any tax, fee, surcharge or other charge that is imposed by this State, any political subdivision of this State or any intergovernmental agency.

F. If the prepaid wireless E-9-1-1 surcharge amount established in paragraph A is amended, the new surcharge amount takes effect 60 days after enactment of the change to the surcharge amount in paragraph A. The bureau shall provide not less than 30 days advance notice of any change to the surcharge amount on the bureau’s publicly accessible website.

G. Prepaid wireless E-9-1-1 surcharges collected by sellers must be remitted to the Treasurer of State. Prepaid wireless E-9-1-1 surcharges must be remitted at the times and in the manner provided for the remittance of sales taxes under Title 36, section 1951-A and rules adopted pursuant to that section for the remittance of sales taxes on an other than monthly basis. The State Tax Assessor shall establish registration and payment procedures that substantially coincide with registration and payment procedures as provided in Title 36, section 1754-B and related provisions.

H. A seller who is not a prepaid wireless telecommunications service provider may deduct and retain 3% of prepaid wireless E-9-1-1 surcharges that are collected by the seller from consumers.

I. The State Tax Assessor shall establish procedures by which a seller may document that a sale is not a retail transaction, which procedures must substantially coincide with the procedures for documenting a sale for retail transaction as provided in Title 36, section 1754-B.

J. The State Tax Assessor shall ensure that all remitted prepaid wireless E-9-1-1 surcharges are deposited in the E-9-1-1 fund under subsection 2-B within 30 days of receipt. For prepaid wireless E-9-1-1 surcharges remitted during the period beginning January 1, 2010 and ending December 31, 2011, the State Tax Assessor may deduct an amount not to exceed 2% of remitted prepaid wireless E-9-1-1 surcharges to reimburse the direct costs of the assessor for administering the collection and remittance of the prepaid wireless E-9-1-1 surcharges during that period.

Sec. 10. 25 MRSA §2927, sub-§1-G is enacted to read:

1-G. E-9-1-1 funding obligation; limitation. The statewide E-9-1-1 surcharge imposed by subsection 1-E and the prepaid wireless E-9-1-1 surcharge imposed by subsection 1-F are the only E-9-1-1 funding obligations imposed with respect to telecommunications services in this State, and another tax, fee, surcharge or other charge may not be imposed by this State, any political subdivision of this State or any intergovernmental agency for funding E-9-1-1 purposes on any telecommunications service with respect to the sale, purchase, use or provision of that telecommunications service.

Sec. 11. 25 MRSA §2927, sub-§2-B, as amended by PL 2007, c. 68, §7, is further amended to read:

2-B. Surcharge remittance. Each local exchange telephone utility, cellular or wireless telecommunications service provider , including a prepaid wireless telephone service provider, and interconnected voice over Internet protocol service provider shall remit the statewide E-9-1-1 surcharge revenues collected from its customers pursuant to this section subsection 1-D on a monthly basis and within one month of the month collected to the Treasurer of State for deposit in a separate account known as the E-9-1-1 fund. Each telephone utility or service provider required to remit statewide E-9-1-1 surcharge revenues shall provide, on a form approved by the bureau, supporting data, including but not limited to the following:

A. The calculation used to arrive at the surcharge remittance amount;

B. The calculation used to arrive at the uncollectible amount of surcharge;

C. The total surcharge;

D. The month and year for which surcharge is remitted;

E. The legal name of company and telephone number and, if applicable, the parent company name, address and telephone number; and

F. The preparer's name and telephone number.

Prepaid wireless E-9-1-1 surcharges collected by sellers must be remitted to the Treasurer of State in accordance with subsection 1-F, paragraph G.

Sec. 12. Transfer from Other Special Revenue Funds; Public Utilities Commission. Notwithstanding any other provision of law, on or before October 1, 2009 the State Controller shall transfer $10,000 from the Public Utilities Commission E-9-1-1 fund to the Bureau of Revenue Services, Internal Services Fund account established pursuant to the Maine Revised Statutes, Title 36, section 114.

Sec. 13. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Bureau of Revenue Services Fund 0885

Initiative: Provides a one-time allocation of $10,000 to Maine Revenue Services for computer programming changes and also provides an allocation for other administrative costs to be reimbursed through retention of 2% of telecommunications prepaid wireless fees collected for the Public Utilities Commission.

BUREAU OF REVENUE SERVICES FUND 2009-10 2010-11

All Other
$10,880 $1,720

inline graphic sline.gif

BUREAU OF REVENUE SERVICES FUND TOTAL $10,880 $1,720

’

Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.

summary

This amendment is the majority report of the committee. Like the bill, the amendment modifies the current method for collecting E-9-1-1 surcharges to require retailers of prepaid wireless services to collect the surcharge from purchasers at the point of sale in a manner similar to sales tax collections on those services. The amendment makes the following changes to the bill.

1. It changes the prepaid wireless E-9-1-1 surcharge amount from 15 cents to 30 cents per retail transaction.

2. It amends the provision regarding disclosure of the prepaid wireless E-9-1-1 surcharge to address those instances when it is not practicable to state the surcharge separately on an invoice, receipt or similar document.

3. It clarifies the provision regarding remittance of the prepaid wireless E-9-1-1 surcharge to ensure it is parallel to statutory requirements and rules governing sales tax remittance, particularly with respect to remittance on a basis other than monthly for certain sellers.

4. It clarifies that the State Tax Assessor rather than the Public Utilities Commission shall establish procedures for a seller to document that a sale is not a retail transaction.

5. It limits the allowance for the State Tax Assessor to retain up to 2% of remitted prepaid wireless E-9-1-1 surcharges to the first 2 years after the effective date of this law.

6. It eliminates the provisions in the bill regarding absolute immunity for prepaid wireless telecommunications service providers and sellers.

7. It amends the provision of the bill regarding the E-9-1-1 funding obligation to apply to both the statewide E-9-1-1 surcharge and the prepaid wireless E-9-1-1 surcharge.

8. It adds language to the provision of law governing surcharge remittance to clarify the separate remittance procedures for the statewide E-9-1-1 surcharge and the prepaid wireless E-9-1-1 surcharge.

9. It provides $10,000 from the E-9-1-1 fund for the State Tax Assessor to establish procedures for administering the collection and remittance of the prepaid wireless E-9-1-1 surcharges.

FISCAL NOTE REQUIRED

(See attached)

HP0731 LD 1056	First Regular Session - 124th Maine Legislature C "A", Filing Number H-270 Text: MS-Word, RTF or PDF		LR 1595 Item 2
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BUREAU OF REVENUE SERVICES FUND	2009-10	2010-11
All Other	$10,880	$1,720

BUREAU OF REVENUE SERVICES FUND TOTAL	$10,880	$1,720