Highlights 77th Texas Legislature - Senate

______________________________
UTILITIES
77 th Texas Legislature
Approval for Expansion by Telecommunications Utilities - S.B. 1185
by Senator Whitmire
House Sponsor: Representative Dukes
Adds Chapter 246 to the Local Government Code to facilitate the expansion of telecommunications
facilities in existing buildings where expansion is necessitated by federal or state law to promote
competition but is hindered by local regulations pertaining to impervious ground cover and other rules.
Requires regulating authorities to approve expansions of existing facilities and waive the impervious ground
cover regulations and sedimentation, retention and soil erosion regulations where additional, suitable
vacant land is not available other than by condemnation or by purchase at a price exceeding the average
fair market value of surrounding land.
Mobile Telecommunications Sourcing Act - S.B. 1497
by Senator Ellis
House Sponsor: Representative Oliveira
As a result of some mobile telecommunications customers (customer) using service in various localities,
several different state and local tax laws may apply. The legislature finds that the United States Congress
has enacted the Mobile Telecommunications Sourcing Act for the purpose of establishing uniform
nationwide sourcing rules for state and local taxation of mobile telecommunications services. Federal law
provides that a customer's place of primary use is the single source for determining tax revenue, regardless
of where the call originates, passes through, or terminates. Conforming state law to federal law ensures
that Texas limits the determination of tax revenue to a single source for a customer.
Implements the Mobile Telecommunications Sourcing Act and conforms Texas law to federal law.
Under current state law, long-distance telephone calls made from wireline and wireless telephones are
subject to sales tax if they originate from and are billed to a telephone number or billing or service address
within Texas. Under the federal act, mobile telecommunications services are to be taxed by the jurisdiction
where the customer primarily uses the services, irrespective of where the mobile telecommunications
services originate, terminate, or pass through. As federal law is preeminent, the state will follow federal
sourcing provisions for mobile telecommunications services beginning on August 1, 2002, even in
instances where state law differs from federal law.
Telecommunications services, including local and long-distance wireline and wireless (mobile)
telecommunications services, are taxable under the state sales and use tax and may be taxed by certain
units of local government. Telecommunications services are also subject to the state Telecommunications
Infrastructure Fund (TIF) assessment under Section 57.043 of the Utilities Code.
Amends Chapter 151 of the Tax Code, concerning the sourcing of state and local sales taxation of mobile
telecommunications services.
Senate Research Center 312