HLS 181ES-2 ENGROSSED
2018 First Extraordinary Session
HOUSE BILL NO. 28
BY REPRESENTATIVE SMITH
TAX: Increases the tax on certain telecommunication devices and services and levies a tax
on prepaid mobile devices and prepaid mobile device cards (Item #10)
1 AN ACT
2To amend and reenact R.S. 47:1061(A)(1) and (2), relative to telecommunication taxes; to
3 levy a tax on certain mobile devices and mobile device cards; to provide for
4 collection and remittance of the tax; to provide for an effective date; and to provide
5 for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:1061(A)(1) and (2) are hereby amended and reenacted to read as
8follows:
9 §1061. Telecommunication tax for the deaf
10 A.(1)(a) There is hereby levied a tax of four and one-half cents per month
11 to be assessed per line for each wireline access line and per telephone number for
12 each wireless handset device on each residential and business customer of a local or
13 wireless telecommunication service company operating in Louisiana. The tax shall
14 be collected from each residential and business customer and remitted by each such
15 company on or before thirty days after the close of each calendar quarter to the
16 secretary of the Department of Revenue on forms prescribed by the secretary. The
17 tax provided for in this Paragraph shall not apply to wireless devices used only for
18 data purposes or to prepaid wireless devices.
19 (b)(i) In addition to any other taxes or fees on purchases of a prepaid mobile
20 device or a prepaid mobile device card, there is hereby levied a tax on prepaid
21 mobile devices and prepaid mobile device cards in the amount of one dollar and fifty
22 cents per retail transaction. For purposes of this Subparagraph, the term "retail
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HB NO. 28
1 transaction" shall mean each individual purchase of a prepaid mobile device or
2 prepaid mobile device card.
3 (ii) The seller of prepaid mobile devices or prepaid mobile device cards shall
4 be required to collect the tax levied pursuant to the provisions of this Subparagraph
5 from each purchaser of a prepaid mobile device or a prepaid mobile device card
6 occurring in this state and to remit the tax in accordance with the requirements of
7 Subsection A of this Section. The amount of the tax shall be either separately stated
8 on an invoice, receipt, or other similar document that is provided to the consumer by
9 the seller, or otherwise disclosed to the consumer.
10 (2) The local or wireless telecommunication service company or the seller
11 of prepaid mobile devices or prepaid mobile device cards which are collecting and
12 remitting such the tax as hereinabove provided levied pursuant to Subsection A of
13 this Section shall be allowed a deduction, not to exceed three percent, from the
14 amount so collected and remitted to the secretary as compensation for such
15 collection. The compensation shall not be allowed, however, if the remittance is not
16 made timely.
17 * * *
18 Section 2. This Act shall become effective on July 1, 2018; if vetoed by the governor
19and subsequently approved by the legislature, this Act shall become effective on July 1,
202018, or on the day following such approval by the legislature, whichever is later.
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 4.5¢ 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.
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HB NO. 28
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.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.