HB 594 -- SALES/USE TAX:  COMMUNICATION SERVICES

CO-SPONSORS:  Kennedy, Hegeman

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 14 to 1.

Under current law, telecommunication service charges are exempt
from sales and use taxes only when separately stated on the
customer's bill.  This bill allows those charges to also be
exempt if the provider separately states the charges in the
provider's business records.

FISCAL NOTE:  Estimated Net Cost to All Funds of Unknown in FY
2002, FY 2003, and FY 2004.  Costs are expected to exceed
$100,000 annually.

PROPONENTS:  Supporters say that the bill will allow
communication services companies to bundle services to consumers
without requiring the companies to separately state each
individual service within the bundle for purposes of sales and
use taxes.

Testifying for the bill were Representatives Kennedy and
Hegeman; Sprint; AT&T; Southwestern Bell Communications; and
Verizon Communications.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am