SCS/HCS/HB 165 - This act establishes the 2007 Municipal Telecommunications Business License Tax Simplification Act and modifies the laws regarding the telecommunications business license tax. The act limits a business license flat tax amount to twenty-seven thousand five hundred dollars or less. After January 1, 2008, any municipality may impose this tax on a telecommunications company for the privilege of doing business within its borders, if the municipality amends its business license tax ordinance to include the new tax rate, and tax base definitions. The maximum rate of the gross receipts percentage for any municipality is limited to five percent, unless the actual calculated rate is greater than five percent. If the calculated rate is greater than five percent, the maximum rate of the gross receipts percentage for the municipality will be adjusted to remain revenue neutral based on revenues collected and forecasted for January 1, 2008, to December 31, 2008; half of the difference between the determined rate and five percent for January 1, 2009, to December 31, 2009; and five percent for January 1, 2010, and thereafter.
If a telecommunications company pays its deemed past liability to a municipality by April 30, 2008, it is entitled to full immunity and any pending lawsuits with respect to all periods up to and including July 1, 2008, will be dismissed. Deemed past liability means the lesser of the liability a telecommunications company would owe to a municipality under its business license tax for the eighteen month period beginning July 1, 2006 and ending December 31, 2007, or the sum of protested tax actually paid plus the amount of protested tax actually paid over such period.
JASON ZAMKUS