Sec. 4. 36 MRSA §1752, sub-§9-D is enacted to read:

9-D.__Reseller.__"Reseller," when used in relation to mobile telecommunications services, means a provider that purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of or integrates the purchased services into mobile telecommunications services.__"Reseller" does not include a serving carrier with which a home service provider arranges for services to its customers outside the home service provider's licensed service area.

Sec. 5. 36 MRSA §1752, sub-§14-D is enacted to read:

14-D.__Serving carrier.__"Serving carrier," when used in relation to mobile telecommunications services, means a facilities-based carrier providing mobile telecommunications services to a customer outside a home service provider's licensed service area.

Sec. 6. 36 MRSA §1752, sub-§18-D, as enacted by PL 1999, c. 488, §10, is amended to read:

18-D. Telecommunications services. "Telecommunications services" means all telecommunications services as described in this subsection.

A. "Telecommunications services" includes:

(1) The provision of 2-way interactive communications through the use of telecommunications equipment; or

(2) The installation, maintenance or repair of telecommunications equipment.; and

(3)__Mobile telecommunications services provided by a home service provider to a customer whose place of primary use is within this State, to the extent those services are associated with transmissions that originate and terminate within this State or within any other state.__Except as otherwise provided by this subparagraph and notwithstanding any other provision of this Part, "telecommunications services" includes all charges associated with the provision of the mobile telecommunications services described in this

subparagraph and all charges for, or associated with, another service provided as an adjunct to such services, regardless of whether individual transmissions included in a customer's bill originate or terminate within the licensed service area of the home service provider.__Notwithstanding any other provision of this Part, "telecommunications services" also includes any otherwise nontaxable charge that is aggregated with and not separately stated from the mobile telecommunications services described in this subparagraph unless the home service provider can, to the satisfaction of the State Tax Assessor, reasonably identify the charge from books and records kept in the regular course of its business.

B. "Telecommunications services" does not include:

(1) Service Except as otherwise provided by this subsection, service originating or terminating outside this State;

(2) Access services;

(3) Directory advertising services;

(4) The sale of unbundled network elements for use in the provision of telecommunications services;

(5) For leases entered into on or after October 1, 1996, "telecommunications services" does not include the lease of telecommunications equipment; or

(6) A prepaid calling arrangement.; or

(7)__Mobile telecommunications services provided by a home service provider to a customer whose place of primary use is not within this State.

Sec. 7. 36 MRSA §1816 is enacted to read:

§1816.__Special rules for mobile telecommunications services

1.__Identifying place of primary use.__A home service provider is responsible for obtaining and maintaining a record of a customer's place of primary use.__Subject to subsection 3 and if the home service provider's reliance on the information provided by its customer is in good faith, the home service provider:

A.__May rely on the applicable residential or business

street address supplied by the home service provider's customer; and

B.__May not be held liable for any additional taxes under this Part based on a different determination of the place of primary use.

2.__Correction of place of primary use; determination by State Tax Assessor.__If the State Tax Assessor determines that the address used by a home service provider as a customer's place of primary use does not meet the definition provided by section 1752, subsection 7-E, the assessor shall notify the customer in writing of that determination and provide the customer an opportunity to demonstrate that that address is the customer's place of primary use.__If the customer fails to demonstrate to the assessor's satisfaction within 30 days from the time it receives notice from the assessor, or within another time period as the assessor may allow, that the address in question is the customer's place of primary use, the assessor shall provide the home service provider with the proper address to be used as the customer's place of primary use.__The home service provider shall begin using the address provided by the assessor as the customer's place of primary use within 30 days from the date it receives notice of the assessor's determination.

3.__Hold harmless provision; faulty database.__A home service provider that uses the data contained in an electronic database described in the federal Mobile Telecommunications Sourcing Act, PL 106-252, Section 1, 114 Stat. 2, 2000, is not liable for a tax that would otherwise be due under this Part solely as a result of any error or omission in the database.

4.__Hold harmless provision; use of enhanced zip codes.__ Subject to subsection 3, a home service provider that does not use the data contained in an electronic database described in the federal Mobile Telecommunications Sourcing Act, PL 106-252, Section 1, 114 Stat. 2, 2000, is not liable for a tax that would otherwise be due under this Part solely as a result of an assignment of a street address to an incorrect taxing jurisdiction if the home service provider employs an enhanced zip code to assign each street address to a specific taxing jurisdiction and exercises due diligence to ensure that each street address is assigned to the correct taxing jurisdiction.__ For purposes of this subsection, there is a rebuttable presumption that a home service provider has exercised due diligence if it demonstrates that it has:

A.__Expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions; and

B.__Implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions.

5.__Bundled services.__Notwithstanding any other provision of this Part, a home service provider shall collect and remit tax on any otherwise nontaxable charge that is aggregated with and not separately stated from taxable mobile telecommunications charges unless it provides the assessor with at least 90 days' written notice of its intent to do otherwise and obtains the assessor's approval.__The notice must be accompanied by information sufficient to enable the assessor to determine whether the home service provider can accurately identify and track taxable and nontaxable charges included in its customer bills.

6.__Transitional provision.__Subject to subsection 3, a home service provider may treat the address used by it for purposes of the tax imposed by this Part for any customer under a service contract or agreement in effect on July 28, 2002 as that customer's place of primary use for the remaining terms of the service contract or agreement, excluding any extension or renewal period.

Sec. 8. Application date. This Act applies to statements issued to customers by providers of mobile telecommunications services after August 1, 2002.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill conforms Maine's sales and use tax law to the federal Mobile Telecommunications Sourcing Act.