DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 28 Engrossed 2018 First Extraordinary Session Smith
Abstract: Levies a tax on prepaid mobile devices and prepaid mobile device cards.
Present law levies a tax of 4.5ยข per month on residential and business customer telephone access
lines of local exchange companies operating in La. The tax is collected by the telecommunications
company and remitted to the Dept. of Revenue (DOR) on or before 30 days after the close of each
calendar quarter on forms prescribed by the secretary. Present law exempts wireless devices used
only for data purposes and prepaid wireless devices from the tax.
Proposed law repeals the present law tax exemption for prepaid wireless devices.
Proposed law levies a tax on prepaid mobile devices and prepaid mobile device cards of $1.50 per
retail transaction. Further defines a "retail transaction" for purposes of proposed law as each
individual purchase of a prepaid mobile device or prepaid mobile device card.
Proposed law requires the seller of prepaid mobile devices or prepaid mobile device cards to collect
the tax pursuant to proposed law from each purchaser and to remit the tax to DOR in accordance
with present law. Further requires the amount of the tax to be separately stated on an invoice or
other similar document provided to the consumer or to otherwise disclose the amount of the tax to
the consumer.
Present law authorizes a deduction not to exceed 3% from the amount of tax collected each month
by telecommunication service companies collecting and remitting the tax as compensation for
collection of the tax.
Proposed law retains present law and extends the 3% deduction to sellers of prepaid mobile devices
or prepaid mobile device cards as compensation for collection and remittance of the tax.
Present law requires, after satisfaction of the requirements of the Bond Security and Redemption
Fund, monies from the tax to be deposited into the "Telecommunications for the Deaf Fund" to be
used to establish, administer, and promote a statewide program to provide accessibility services and
assistive technology for persons who are deaf, deaf/blind, hard of hearing, speech impaired, or others
with similar disabilities or impairments.
Proposed law retains present law.
Effective July 1, 2018. (Amends R.S. 47:1061(A)(1) and (2))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the amount of the tax levied from a graduated amount of tax based on the amount
of the retail transaction to a flat tax of $1.50 per retail transaction.
2. Define "retail transaction" for purposes of proposed law as each individual purchase of
a prepaid mobile device or prepaid mobile device card.