HBA-SEP H.B. 3595 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3595 By: Oliveira Ways & Means 3/30/2001 Introduced BACKGROUND AND PURPOSE As a result of some mobile telecommunications customers (customer) using service in various localities, several different state and local tax laws may apply. Federal law provides that a customer's place of primary use is the single source for determining tax revenue, regardless of where the call originates, passes through, or terminates. Conforming state law to federal law ensures that Texas limits the determination of tax revenue to a single source for a customer. House Bill 3595 conforms Texas law to federal law. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3595 amends the Tax Code to create the Mobile Telecommunications Act. If a mobile telecommunications customer (customer) believes that an amount of tax or assignment of place of primary or taxing jurisdiction included on a billing is erroneous, the customer is required to notify the home service provider in writing. The bill requires the customer to include in this written notification the street address for the customer's place of primary use, the account name and number for which the customer seeks a correction of the tax assignment, a description of the error, and any other information the home service provider (provider) reasonably requires to process the request. Within sixty days of receiving such a notice, the provider is required to determine the customer's taxing jurisdiction and if there is an error, the provider is required to correct the error and refund or credit the amount of tax erroneously collected from the customer for a period of up to two years. Otherwise, the provider is required to provide a written explanation to the customer. EFFECTIVE DATE September 1, 2001.