House Bill 1356

AN ACT TO AMEND SECTION 21-33-203, MISSISSIPPI CODE OF 1972, TO REQUIRE CERTAIN PERSONS WHO PROVIDE MOBILE TELECOMMUNICATIONS SERVICES TO PAY A CITY UTILITY TAX; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 21-33-203, Mississippi Code of 1972, is amended as follows:

21-33-203. In addition to the taxes now or hereafter provided by law, there is hereby levied upon, assessed to and shall be collected from all telephone or communication utilities as defined by Section 77-3-1, Mississippi Code of 1972 and regulated under said Section 77-3-1, and all persons who provide mobile telecommunications services an additional tax of two percent (2%) of the gross amount of revenue made and collected on local business from customers within the corporate limits of any municipality of the State of Mississippi, which qualifies as provided by the City Utility Tax Law. Such public utility and all persons who provides mobile telecommunications services shall add to the sales price of its service the amount of any tax due under the provisions of the City Utility Tax Law to the extent that such tax was not included as a part of the cost of furnishing services in the fixing of the rates and charges for such service by the Mississippi Public Service Commission. The tax levied in this section shall not apply to the cash receipts collected through coin boxes or other mechanical devices where it is impracticable to render periodic statements and thereby add the tax to the sales price of its service.

Any such public utility or any person who provides mobile telecommunications services which pays any municipality of the State of Mississippi the compensation provided for in municipal franchises or levied and provided for by Section 77-3-17, Mississippi Code of 1972, shall be exempt from the tax * * * imposed in this section and from the provisions of the City Utility Tax Law. In addition, any such public utility or any person who provides mobile telecommunications services which makes payment of the tax imposed in this section shall not be required to make payments, if any, which may be required under the terms of * * * Section 77-3-17.

SECTION 2. This act shall take effect and be in force from and after July 1, 2006.