Introduced Version Senate Bill 436 History

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Senate Bill No. 436

(By Senator Tomblin, Mr. President)


[Introduced March 3, 2005; referred to the Committee

on Finance.]


A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-15-9k, relating generally to exempting commissions paid to telecommunication brokers from consumers sales and service tax; and defining certain terms.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-15-9k, to read as follows:
§11-15-9k. Telecommunications broker services.
(a) Notwithstanding any provision in this article to the contrary, commissions paid to telecommunications brokers for furnishing telecommunication broker services are exempt from the tax imposed by this article.
(b) Definitions. -- As used in this article, and articles fifteen-a and fifteen-b of this chapter, the following terms shall have the meaning ascribed to them in this section, except in those instances where a different meaning is provided in this article, or the context in which the word is used clearly indicates that a different meaning is intended by the Legislature.
(1) "Database access transmission services" includes, but is not limited to, on-line information services, such as legal research services, credit reporting services, and credit research services, and charges to access an individual website, including application service providers.
(2) "Information service" means a service that can generate, acquire, store, transform, process, retrieve, use, or make available information through a communications service. Examples of an information service include an electronic publishing service and a web hosting service.
(3) "Mobile telecommunications service" means mobile telecommunications service as that term is defined in Section 124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act.)
(4) "Online information system" means a computer or computer related device or a group of computers and computer-related devices for storing, filing, retrieving and communicating information, and having an information search capability that is connected to the internet or that is otherwise, served by, or available through a computer or telecommunications system. Examples of online information systems include, but are not limited to, online legal research services, online libraries, and online news reporting and search services.
(5) "Satellite telecommunications service" means telecommunications service provided with the use of, or by or through, any satellite orbiting the earth. The term "satellite telecommunications service" includes, but is not limited to, mobile and fixed satellite communication services, such as automobile emergency communication services, ground positioning satellite locator and navigation services, satellite telephone service, satellite radio programming and other mobile communication services and television, radio, or other programming or communications services provided by, through or with the use of any earth orbiting satellite.
(6) "Telecommunications broker" means and is limited to an agent or representative of a telecommunications carrier or telecommunications reseller, who is not an employee of the carrier or the reseller for which the person acts as agent or representative, who for a commission engages in the business of negotiating or arranging the purchase or sale of telecommunications services for the account of others or arranging the purchase or sale of vertical services sold with or bundled with sales of telecommunications service for the account of others.
(7) "Telecommunications reseller" or "reseller" means a telecommunications service provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a telecommunications service that is resold. The term "telecommunications reseller" or "reseller" do not include a serving carrier, as defined in Public Law 106-252 (the Mobile Telecommunications Sourcing Act) with which a home service provider, as defined in Public Law 106-252, arranges for mobile telecommunications services to its customers outside the home service provider's licensed service area.
(8) "Telecommunications service" means and is limited to telephone service regulated under chapter twenty-four of this code or under federal law, and is limited to:
(A) Telephone service and electronic transmission of voice or data provided via the traditional circuit-committed protocols of the public switched telephone network; and
(B) Telephone service and electronic transmission of voice or data provided via a wireless transmission system, including analog mobile cellular telephone, analog cellular car phone, digital mobile cellular telephone and digital car cellular phone, voice over Internet protocol, wireless mobile telecommunications service, as defined in this section.

(9) "Vertical services" means optional services offered in connection with a telecommunications service, and includes call forwarding, caller ID, and three-way calling, call waiting, call forwarding, voice mail, call blocking, caller ID blocking, and call display.
(c) For purposes of this exemption, the term telecommunications service does not include:
(1) Cable television services;
(2) Satellite radio programming service, satellite television service or other satellite telecommunications services;
(3) Paging services;
(4) Telegraph service;
(5) Fax transmission services;
(6) E-mail Services;
(7) Electronic filing of tax returns;
(8) Database access transmission services as defined in this section;
(9) Air-to-ground radiotelephone service, as defined in article fifteen-b of this chapter;
(10) Charges for telecommunications services that are a component part of or are integrated into a telecommunications service that is resold;
(11) Telecommunications services that are resold as part of a prepaid telephone calling arrangement;
(12) Transactions involving automatic teller machines;
(13) Access to online information systems or electronic databases such as legal research systems, news and information research systems and electronic libraries;
(14) Directory advertising and yellow-page classified listings;
(15) Information services or access to an information service, as defined in this section;
(16) Internet access service, electronic mail service, electronic bulletin board service, or similar on-line services;
(17) Billing and collection services;
(18) Charges for bad checks or late payments;
(19) Answering service other than voice mail services offered as a vertical service purchased as an option with or bundled with a purchase of telecommunications service; or
(20) Any other service not specifically described in the definition of telecommunications service.

NOTE: The purpose of this bill is to exempt from sales tax commissions paid to telecommunications brokers for the provision of telecommunications brokers services.

This section is new; therefore, strike-throughs and underscoring have been omitted.
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