§ 20-99. Tax on charges to consumers of mobile local telecommunication services.

(a)

Definitions. The following definitions shall apply to this section:

Affiliated group shall have the same meaning ascribed to it in section 58.1-3703B.10. of the Code of Virginia of 1950, as amended, except, for purposes of this section, the word "entity" shall be substituted for the word "corporation" whenever it is used in that section.

Bad debts: Any portion of a debt related to a sale of local telecommunication services, the gross charges for which are not otherwise deductible, or excludable, that has become worthless or uncollectible, as determined under applicable federal income tax standards. If the portion of the debt deemed to be bad is subsequently paid, the service provider shall report and pay the tax on that portion during the reporting period in which the payments is made.

Consumer: A person who, individually or through agents, employees, officers, representatives, or permittees, make a taxable purchase of local telecommunication services.

Enhanced services: Services that employ computer processing applications to act on the format, code, or protocol or similar aspects of the information transmitted; provide additional, different, or restructured information; or involve interaction with stored information.

Gross charges: Subject to the exclusions of this section, the amount charged or paid for the taxable purchase of local telecommunication services. However, "gross charges" shall not include the following:

(1)

Charges or amounts paid that vary based on the distance and/or elapsed transmission time of the communication that are separately stated on the consumer's bill or invoice.

(2)

Charges or amounts paid for customer equipment, including such equipment that is leased or rented by the customer from any source, if such charges or amounts paid are separately identifiable from other amounts charged or paid for the provision of local telecommunication services on the service provider's books and records.

(3)

Charges or amounts paid for administrative services, including, without limitation, service connection and reconnection, late payments, and roamer daily surcharges.

(4)

Charges or amounts paid for special features that are not subject to taxation under section 4251 of the Internal Revenue Code of 1986, as amended.

(5)

Charges or amounts paid that are the tax imposed by section 4251 of the Internal Revenue Code of 1986, as amended, or any other tax or surcharge imposed by statute, ordinance or regulatory authority.

(6)

Bad debts.

Mobile local telecommunication service: Any two-way mobile or portable local telecommunication service, including cellular mobile radio telecommunication service and specialized mobile radio.

Mobile service consumer: A person having a telephone number for mobile local telecommunication service who has made a taxable purchase of such service or on whose behalf another person has made a taxable purchase of such service.

Mobile service provider: Every person engaged in the business of selling mobile local telecommunication services to consumers.

Service address: The location of the telecommunication equipment from which the telecommunication is originated or at which the telecommunication is received by a consumer. However, if the service address is not a defined location, as in the case of mobile telephones, maritime systems, air-to-ground systems and the like, service address shall mean the location of the subscriber's primary use of the telecommunication equipment within the licensed service area. A mobile service provider may obtain a signed statement from a consumer indicating which county, city or town within the licensed service area is the location of the consumer's primary use of the telecommunication equipment. A mobile service provider shall be entitled to rely absolutely on a consumer's signed statement and shall remit the taxes collected to the county, city or town identified by the consumer. In the absence of a signed statement by a consumer, a mobile service provider shall identify the county, city or town of the consumer's primary use and shall remit the tax to such county, city or town based on any other reasonable method, including, without limitation, the consumer's billing address, service address, or telephone number within the licensed service area.

Service provider: Every person engaged in the business of selling local telecommunication services to consumers.

Taxable purchase: The acquisition of telecommunication services for consumption or use; however, taxable purchase does not include the provision of telecommunications among members of an affiliated group of entities by a member of the group for their own exclusive use and consumption and the purchase of telecommunications for resale in the subsequent provision of telecommunications, including, without limitation, carrier access charges, right of access charges, and charges for use of intercompany facilities; however, the acquisition of telecommunications by a provider of enhanced services is not the purchase of telecommunications for resale, even when the cost of the telecommunication is separately stated to the purchaser of the enhanced services, as long as the primary object of the purchase of the telecommunications by the provider is for the provision of enhanced services and not telecommunications. A person may make tax-free purchases of telecommunications for resale if the person provides to the service provider a sworn affidavit indicating that the person's purchases are nontaxable sales for resale.

(b)

Imposition of tax:

(1)

There is hereby imposed and levied by the County of Franklin upon each and every taxable purchase by a mobile service consumer of mobile local telecommunication service, if the mobile service consumer's service address is located in Franklin County, Virginia, a tax in the amount of ten (10) percent of the gross monthly charge to such consumer of the mobile local telecommunication service, but shall not be applicable to any amount so charged in excess of thirty dollars ($30.00) per month for each mobile service consumer.

(2)

The tax imposed and levied pursuant to the provisions of this section shall not be effective until sixty (60) days subsequent to written notice by certified mail from the county, to the registered agent of the mobile service provider that is required to collect the tax.

(3)

An exemption is hereby provided from the tax imposed by this section for any entity which comes within the definition of "Public Safety Agency" as defined in section 58.1-3813 of the Code of Virginia of 1950, as amended.

(4)

The mobile service provider of mobile local telecommunication service shall collect the tax from the mobile service consumer by adding the tax to the monthly gross charge for such services. The tax shall, when collected, be stated as a distinct item separate and apart from the monthly gross charge. Until the mobile service consumer pays the tax to the mobile service provider, the tax shall constitute a debt of the consumer to the county. If any mobile service consumer refuses to pay the tax, the mobile service provider shall notify the county. After the mobile service consumer pays the tax to the mobile service provider, the taxes collected shall be deemed to be held in trust by the mobile service provider until remitted to the county.

(5)

The mobile service provider shall remit monthly to the county the amount of tax billed during the preceding month to mobile service consumers with a service address in the county.

(6)

Any mobile service consumer shall be entitled to a refund from the county equal to the amount of any tax the mobile service consumer paid to a jurisdiction outside of the commonwealth if such tax was legally imposed in such other jurisdiction; however, the amount of credit or refund shall not exceed the tax paid to the county on such purchases.

(c)

Incorporation of prior provisions. Sections 20-91, 20-92(c), 20-93, 20-94, 20-95, 20-96, and 20-97 are incorporated herein by reference and made applicable to the tax herein imposed.

(d)

Authority. This tax is imposed pursuant to the authority of section 58.1-3812 of the Code of Virginia, as amended.

(Res. No. 27-09-96, 9-17-96)

(Res. No. 27-09-96, 9-17-96)