- Introduced -

SB 627 - Current law authorizes certain cities and counties to levy a tax on the gross receipts of businesses and services, including utility services such as electricity and natural gas. This act retains the current authorization for the tax but authorizes the cities and counties to also levy a tax, with voter approval, on consumers who purchase the utility services from any business entity not subject to the gross receipts tax.

The act also clarifies the current sales tax treatment of telecommunications services. Sales of local and long distance telecommunications service to telecommunication subscribers through equipment for the transmission of messages and conversations are subject to sales tax. Specifically excluded from the definition of telecommunication service, and thus not taxable, are access to the Internet or to interactive computer services (except the basic amount paid for the telephone line, which remains taxable), answering services and paging services, mobile radio services (except FCC-licensed cell phone services, which remain taxable), and cable or satellite television or music services.

RUSS HEMBREE