HS/HCS/SS/SCS/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 requires sellers of electricity and gas to be certified by the Public Service Commission and to file agreements which the sellers have entered into, with either the distributor or the political subdivision, for the payment of all taxes or franchise fees owed. Distributors and political subdivisions are prohibited from providing energy services to any person on behalf of a seller unless the seller has been certified as such and has filed its agreement to pay all applicable business license taxes. The agreements must specifically state that the seller waives both its right to challenge the validity of the agreement and its right to the refund of any amounts paid pursuant to the agreement. A declaratory judgment action is authorized. Any legal action challenging the validity of any agreement will suspend the provisions of that agreement until a final and nonappealable judgment has been made.

If the provisions authorizing the agreement structure are invalidated by a court judgment, energy services may only be provided upon a finding of public convenience and necessity by the Public Service Commission.

A political subdivision is allowed to impose a tax by ordinance, if approved by the voters, on persons who take title to gas, electricity or energy services outside that political subdivision but who use or consume such products within the political subdivision.

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 amount paid for the telephone line or telecommunication service itself, which remains taxable), answering services and paging services, private mobile radio services (except cellular services, personal communications services, and enhanced specialized mobile radio services, which remain taxable), and cable or satellite television or music services.

The act has an emergency clause.
RUSS HEMBREE