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.