§301.1. Telecommunications and ancillary services

A. The sales and use tax levied by this Chapter shall apply to the sales price of telecommunications services in accordance with the following sourcing rules:

(1) Except as otherwise provided in Paragraph (4) of this Subsection, telecommunications services sold on a call-by-call basis shall be subject to the tax imposed by this Chapter if either of the following occur:

(a) The call both originates and terminates in this state.

(b) The call either originates in this state or terminates in this state, and the service address associated with the call is located in this state.

(2) Except as otherwise provided in Paragraph (4) of this Subsection, telecommunications services sold on a basis other than a call-by-call basis shall be subject to the tax imposed by this Chapter if the telecommunications service is charged to a customer whose place of primary use is in this state.

(3) Except as otherwise provided in Paragraph (4) of this Subsection, mobile telecommunications services provided by a customer's home service provider shall be subject to the tax imposed by this Chapter if the customer's place of primary use is in this state.

(4) Notwithstanding the provisions of Paragraphs (1), (2), and (3) of this Subsection, the following rules apply:

(a) Air-to-ground radio telephone services shall be subject to the tax imposed by this Chapter if the customer's place of primary use is located in this state.

(b) Postpaid calling services shall be subject to the tax imposed by this Chapter if the origination point of the telecommunications signal is located in this state, as first identified by either of the following:

(i) The seller's telecommunications system.

(ii) Information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.

(c) With respect to private communication services, the tax imposed by this Chapter shall apply to:

(i) Any separate charge for a specific channel termination point located in this state.

(ii) Any separate charge for the use of a channel that is exclusively between two channel termination points located in this state.

(iii) Where channel termination points of a channel are located both within and outside this state:

(aa) Fifty percent of any separate charge for a segment of a channel between two such channel termination points.

(bb) To the extent that the charge for any segment or segments of a channel is not separately billed, an amount equal to the total charge for such channel segment or segments multiplied by a fraction, the numerator of which is the number of channel termination points located in this state and the denominator of which is the total number of channel termination points.

B.(1) The sales price of telecommunications services shall include, whether or not separately stated, charges for any of the following:

(a) The connection, movement, change, or termination of telecommunications services.

(b) Conference bridging services and vertical services if the customer's place of primary use is located in this state.

(2) The sales price of telecommunications services shall not include charges for any of the following:

(a) The furnishing of any telecommunications service for resale, including access and other interconnection charges paid by providers of telecommunications services and charges for the use of intercompany facilities pursuant to shared network facility arrangements, provided that any dealer making a sale of telecommunications services for resale shall obtain a certificate from the purchaser of such services certifying that such services are purchased for the purpose of resale, the form of the certification to be determined by rules and regulations to be promulgated by the secretary.

(b) Ancillary services, except those specified in Paragraph (1) of this Subsection, if the nontaxable ancillary service charges are stated separately from the charges for telecommunications services.

(c) Any excise, franchise, or similar tax or like fee or assessment levied by the United States, by the state of Louisiana, or by any political subdivision as defined in Article VI, Section 44(2) of the Constitution of Louisiana, upon the purchase, sale, use, or consumption of any telecommunications service, which tax, fee, or assessment is collected by the seller from the purchaser.

(d) Telecommunications services paid for by inserting coins in coin-operated telephones available to the public.

(e) Telecommunications services or transactions defined in this Paragraph among entities classified as members of an affiliated group as provided by 26 U.S.C. 1504, provided, however, that these provisions shall not apply to any sale of tangible personal property.

(f) Any other property or services that are not telecommunications services if stated separately from the charges for telecommunications services.

C. The following provisions apply to the furnishing of mobile telecommunications services:

(1) The home service provider shall be responsible for obtaining and maintaining the customer's place of primary use.

(a) If the home service provider's reliance on information provided by its customer is in good faith, it shall be entitled to rely on the applicable residential or business street address supplied by the customer as the place of primary use unless a taxing jurisdiction or the state has given the home service provider a notice of determination as set forth in Subparagraph (c) or (d) of this Paragraph.

(b) If the home service provider's reliance on information provided by its customer regarding the customer's place of primary use is in good faith, it shall not be liable for any additional taxes, charges, or fees based on a different determination of the place of primary use for taxes, charges, or fees that are customarily passed on to the customer as a separate, itemized charge unless a taxing jurisdiction or the state has given the home service provider a notice of determination as set forth in Subparagraphs (c) or (d) of this Paragraph.

(c) A taxing jurisdiction, or the state on behalf of any taxing jurisdiction or taxing jurisdictions within the state, may determine that the address used for purposes of determining the taxing jurisdictions to which taxes, charges, or fees for mobile telecommunications services are remitted does not meet the definition of place of primary use and give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination. However, if the taxing jurisdiction making such determination is not the state, such taxing jurisdiction shall obtain the consent of all affected taxing jurisdictions within the state and shall give the customer an opportunity to demonstrate in accordance with applicable state or local tax, charge, or fee administrative procedures that the address is the customer's place of primary use before giving such notice of determination.

(d) A taxing jurisdiction, or the state on behalf of any taxing jurisdiction or taxing jurisdictions within the state, may determine that the assignment of a taxing jurisdiction by a home service provider under Subparagraph (a) of this Paragraph does not reflect the correct taxing jurisdiction and give binding notice to the home service provider to change the assignment on a prospective basis from the date of notice of determination. However, if the taxing jurisdiction making the determination is not the state, it must obtain the consent of all affected taxing jurisdictions within the state and give the home service provider an opportunity to demonstrate in accordance with applicable state or local tax, charge, or fee administrative procedures that the assignment reflects the correct taxing jurisdiction before giving such notice of determination.

(e) If a customer believes that an amount of tax or assignment of place of primary use or taxing jurisdiction included on a billing is erroneous, before seeking any other remedy the customer shall notify the home service provider in writing. The customer shall include in this written notification the street address for his 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 asserted by the customer, and any other information that the home service provider reasonably requires to process the request. Within sixty days of receiving a notice under this Section, the home service provider shall review its records and the electronic database or enhanced zip code used to determine the customer's taxing jurisdiction. If this review shows that the amount of tax, assignment of place of primary use, or taxing jurisdiction is in error, the home service provider shall correct the error and refund or credit the amount of tax erroneously collected from the customer for a period of up to two years. If this review shows that the amount of tax, assignment of place of primary use, or taxing jurisdiction is correct, the home service provider shall provide a written explanation to the customer.

(f) If the customer is dissatisfied with the response of the home service provider required under this Section, the customer may seek a correction or refund from the taxing jurisdiction affected.

(2)(a) Notwithstanding any provision of law to the contrary, if a mobile telecommunications service is not subject to the tax imposed by this Chapter or taxes levied by other taxing jurisdictions, and if the amount paid or charged for such mobile telecommunications service is aggregated with and not separately stated from the amount paid or charged for any service that is subject to such taxes, then the nontaxable mobile telecommunications service shall be treated as being subject to such taxes unless the home service provider can reasonably identify the amount paid or charged for the mobile telecommunications service not subject to such taxes from its books and records kept in the regular course of business.

(b) Notwithstanding any provision of law to the contrary, if a mobile telecommunications service is not subject to the taxes levied by the state pursuant to R.S. 47:302(C) and 331(C) or by other taxing jurisdictions, a customer may not rely upon the nontaxability of such mobile telecommunications service unless the customer's home service provider separately states the amount charged for such nontaxable mobile telecommunications service or the home service provider elects, after receiving a written request from the customer in the form required by the provider, to provide verifiable data based upon the home service provider's books and records that are kept in the regular course of business that reasonably identifies the amount charged or paid for such nontaxable mobile telecommunications service.

D.(1) Notwithstanding any provision of law to the contrary, with respect to sales of interstate telecommunications services to any person for use in the operation of one or more call centers, the tax imposed by this Chapter shall not exceed twenty-five thousand dollars per calendar year.

(2) The limitation set forth in this Subsection shall apply only to holders of a direct payment number issued by the department pursuant to R.S. 47:303.1. In order to obtain such direct payment number, the applicant must establish that he satisfies the criteria set forth in this Subsection. The provisions of R.S. 47:303.1(B) shall not apply to any application for a direct payment number under this Subsection.

(3) The department shall not issue any refunds of taxes paid prior to receiving a direct payment number.

(4) All entities wholly owned by the same person or entity shall be considered a single person.

E. To prevent actual multistate taxation of an interstate telecommunications service subject to the tax imposed by this Chapter, any taxpayer, upon proof that such taxpayer has paid a tax in another state on such service, shall be allowed a credit against the tax imposed by this Chapter to the extent of the amount of such tax paid in such other state.

F. Notwithstanding any provision of law to the contrary, after allocation of monies to the Bond Security and Redemption Fund as required by Article VII, Section 9(B) of the Constitution of Louisiana, from the avails of the sales tax on telecommunication services there shall be an annual dedication of one million dollars to be deposited into the Telecommunications for the Deaf Fund for use as provided in R.S. 47:1061(B).

Acts 2007, No. 358, §1, eff. Aug. 1, 2007; Acts 2013, No. 300, §1, eff. July 1, 2013.