Okla. Stat. tit. 68, § 68-55001

which act applies – Services deemed to be provided by home service

provider.

A. As used in this section:

1. “Charges for mobile telecommunications services” means any

charge for, or associated with, the provision of commercial mobile

radio service, as defined in Section 20.3 of Title 47 of the Code of

Federal Regulations as in effect on June 1, 1999, or any charge for,

or associated with, a service provided as an adjunct to a commercial

mobile radio service, that is billed to the customer by or for the

customer's home service provider regardless of whether individual

transmissions originate or terminate within the licensed service

area of the home service provider;

2. a. “Customer” means, in general:

(1) the person or entity that contracts with the home

service provider for mobile telecommunications

services, or

(2) if the end user of mobile telecommunications

services is not the contracting party, the end

user of the mobile telecommunications service,

but this division applies only for the purpose of

determining the place of primary use.

b. The term “customer” does not include:

(1) a reseller of mobile telecommunications service,

or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1554

(2) a serving carrier under an arrangement to serve

the customer outside the home service provider's

licensed service area;

3. “Designated database provider” means a corporation,

association, or other entity representing the state and political

subdivisions of the state that is:

a. responsible for providing an electronic database

prescribed in Section 3 of this act, and

b. approved by the Tax Commission;

4. “Enhanced zip code” means a United States postal zip code of

9 or more digits;

5. “Home service provider” means the facilities-based carrier

or reseller with which the customer contracts for the provision of

mobile telecommunications services;

6. “Licensed service area” means the geographic area in which

the home service provider is authorized by law or contract to

provide commercial mobile radio service to the customer;

7. “Mobile telecommunications service” means commercial mobile

radio service, as defined in Section 20.3 of Title 47 of the Code of

Federal Regulations as in effect on June 1, 1999;

8. “Place of primary use” means the street address

representative of where the customer's use of the mobile

telecommunications service primarily occurs, which must be:

a. the residential street address or the primary business

street address of the customer, and

b. within the licensed service area of the home service

provider;

9. “Prepaid telephone calling services” means the right to

purchase exclusively telecommunications services that must be paid

for in advance, that enables the origination of calls using an

access number, authorization code, or both, whether manually or

electronically dialed, if the remaining amount of units of service

that have been prepaid is known by the provider of the prepaid

service on a continuous basis;

10. “Reseller” means a provider who purchases

telecommunications services from another telecommunications service

provider and then resells, uses as a component part of, or

integrates the purchased services into a mobile telecommunications

service. The term “reseller” does not include a serving carrier

with which a home service provider arranges for the services to its

customers outside the home service provider's licensed service area;

and

11. “Serving carrier” means a facilities-based carrier

providing mobile telecommunications service to a customer outside a

home service provider's or reseller's licensed service area.

B. The Oklahoma Legislature finds that the United States

Congress has enacted the Mobile Telecommunications Sourcing Act for

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1555

the purpose of establishing uniform nationwide sourcing rules for

state and local taxation of mobile telecommunications services. In
omer outside a

home service provider's or reseller's licensed service area.

B. The Oklahoma Legislature finds that the United States

Congress has enacted the Mobile Telecommunications Sourcing Act for

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1555

the purpose of establishing uniform nationwide sourcing rules for

state and local taxation of mobile telecommunications services. In

general, the rules provide that taxes on mobile telecommunications

services shall be paid to the jurisdiction where the customer’s

primary use of such services occurs, irrespective of where the

mobile telecommunications services originate, terminate, or pass

through. The Oklahoma Legislature desires to implement the federal

Mobile Telecommunications Sourcing Act in the state, and to make

state and local government officials aware of its provisions. The

Oklahoma Legislature recognizes that the federal act is intended to

provide sourcing rules in a manner that is revenue-neutral among the

states, and that the sourcing rules required by it are likely in

fact to be revenue-neutral at the state level. The Oklahoma

Legislature further finds that the federal requirements are within

the powers of the federal government.

C. 1. This act shall apply to the tax imposed by Section 1354

of Title 68 of the Oklahoma Statutes and any tax, charge, or fee

that may be levied by the state or a taxing jurisdiction within this

state as a fixed charge for each customer or measured by gross

amounts charged to customers for mobile telecommunications services,

regardless of whether such tax, charge, or fee is imposed on the

vendor or customer of the service and regardless of the terminology

used to describe the tax, charge, or fee.

2. This act does not apply to:

a. any tax, charge, or fee levied upon or measured by the

net income, capital stock, net worth, or property

value of the provider of mobile telecommunications

service,

b. any tax, charge, or fee that is applied to an

equitably apportioned amount that is not determined on

a transactional basis,

c. any tax, charge, or fee that represents compensation

for a mobile telecommunications service provider's use

of public rights-of-way or other public property,

provided that such tax, charge, or fee is not levied

by the taxing jurisdiction as a fixed charge for each

customer or measured by gross amounts charged to

customers for mobile telecommunication services, or

d. any generally applicable business and occupation tax

that is imposed by the state, is applied to gross

receipts or gross proceeds, is the legal liability of

the home service provider, and that statutorily allows

the home service provider to elect to use the sourcing

method required in this section.

3. The provisions of this act:

a. do not apply to the determination of the taxing situs

of prepaid telephone calling services, and

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b. do not apply to the determination of the taxing situs

of air-ground radiotelephone service as defined in

Section 22.99 of Title 47 of the Code of Federal

Regulations as in effect on June 1, 1999.

D. 1. Notwithstanding any other provision of law of this state

or any political subdivision of this state, mobile

telecommunications services provided in a taxing jurisdiction to a

customer, the charges for which are billed by or for the customer's

home service provider, shall be deemed to be provided by the

customer's home service provider.

2. All charges for mobile telecommunications services that are

subject to the tax imposed by Section 1354 of Title 68 of the

Oklahoma Statutes and that are deemed under this act to be provided

to a customer’s place of primary use within this state by the

customer's home service provider are subject to the tax, regardless

of where the mobile telecommunication services originate, terminate,

or pass through.

3. A home service provider shall be responsible for obtaining
e tax imposed by Section 1354 of Title 68 of the

Oklahoma Statutes and that are deemed under this act to be provided

to a customer’s place of primary use within this state by the

customer's home service provider are subject to the tax, regardless

of where the mobile telecommunication services originate, terminate,

or pass through.

3. A home service provider shall be responsible for obtaining

and maintaining the customer's place of primary use. Subject to the

provisions of paragraph 5 of this subsection, a home service

provider may rely on the applicable residential or business street

address supplied by the home service provider's customer, and will

not be liable for any additional taxes, charges, or fees based on a

different determination of the place of primary use for taxes,

charges, or fees that are customarily passed on to the customer as a

separate itemized charge if the reliance on information provided by

its customer is in good faith.

4. Except as provided in paragraph 5 of this subsection, a home

service provider may treat the address used by the home service

provider for tax purposes for any customer under a service contract

or agreement in effect on or before July 28, 2002, as that

customer's place of primary use for the remaining term of such

service contract or agreement, excluding any extension or renewal of

such service contract or agreement, for purposes of determining the

taxing jurisdictions to which taxes, charges, or fees on charges for

mobile telecommunications services are remitted.

5. The Oklahoma Tax Commission may:

a. determine that the address used for purposes of

determining the taxing jurisdictions to which taxes,

charges, or fees for mobile telecommunications

services are remitted does not meet the definition of

“place of primary use” in this section and give

binding notice to the home service provider to change

the place of primary use on a prospective basis from

the date of notice of determination. Before the Tax

Commission gives such notice of determination, the

customer shall be given an opportunity to demonstrate

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in accordance with Tax Commission rules and

administrative procedures that the address is the

customer's place of primary use, or

b. determine that the assignment of a taxing jurisdiction

by a home service provider under Section 3 of this act

does not reflect the correct taxing jurisdiction and

give binding notice to the home service provider to

change the assignment on a prospective basis from the

date of notice of determination. The home service

provider shall be given an opportunity to demonstrate

in accordance with Tax Commission rules and

administrative procedures that the assignment reflects

the correct taxing jurisdiction.

6. If charges for nontaxable mobile telecommunications services

are aggregated with and not separately stated from charges that are

subject to taxation, then the charges for nontaxable mobile

telecommunications services will be subject to taxation unless the

home service provider can reasonably identify charges not subject to

the tax, charge, or fee from its books and records that are kept in

the regular course of business.

7. If a customer believes that an amount of tax, charge or fee,

or assignment of place of primary use or taxing jurisdiction

included on a billing is erroneous, the customer shall notify the

home service provider in writing. The customer shall include in

this written notification the street address for the place of

primary use, the account name and number for which the customer

seeks a correction of the tax assignment, a description of the error

asserted by the customer, and any other information that the home

service provider reasonably requires to process the request. Within

sixty (60) days of receiving a notice under this section, the home

service provider shall review its records and the electronic
primary use, the account name and number for which the customer

seeks a correction of the tax assignment, a description of the error

asserted by the customer, and any other information that the home

service provider reasonably requires to process the request. Within

sixty (60) days of receiving a notice under this section, the home

service provider shall review its records and the electronic

database or enhanced zip code to determine the customer’s taxing

jurisdiction. If this review shows that the amount of tax, charge

or fee, or assignment of place of primary use or taxing jurisdiction

is in error, the home service provider shall correct the error and

refund or credit the amount of tax, charge or fee erroneously

collected from the customer for a period of up to two (2) years. If

this review shows that the amount of tax, charge or fee, or

assignment of place of primary use or taxing jurisdiction is

correct, the home service provider shall provide a written

explanation to the customer. The procedures in this section shall

be the first course of remedy available to customers seeking

correction of assignment of place of primary use or taxing

jurisdiction, or a refund of or other compensation for taxes,

charges or fees erroneously collected by the home service provider,

and no cause of action based upon a dispute arising from the Act

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1558

shall accrue until a customer has reasonably exercised the rights

and procedure set forth herein.