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SECOND REGULAR SESSION
HOUSE BILL NO. 2767
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE PERKINS.
5979H.02I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 190.460, RSMo, and to enact in lieu thereof one new section relating to
prepaid wireless emer gency telephone service char ges.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 190.460, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 190.460, to read as follows:
190.460. 1. As used in this section, the following terms mean:
2 (1) "Board", the Missouri 91 1 service board established under section 650.325;
3 (2) "Consumer", a person who purchases prepaid wireless telecommunications
4 service in a retail transaction;
5 (3) "Department", the department of revenue;
6 (4) "Prepaid wireless service provider", a provider that provides prepaid wireless
7 service to an end user;
8 (5) "Prepaid wireless telecommunications service", a wireless telecommunications
9 service that allows a caller to dial 91 1 to access the 91 1 system and which service shall be
10 paid for in advance and is sold in predetermined units or dollars of which the number declines
11 with use in a known amount;
12 (6) "Retail transaction", the purchase of prepaid wireless telecommunications service
13 from a seller for any purpose other than resale. The purchase of more than one item that
14 provides prepaid wireless telecommunication service, when such items are sold separately ,
15 constitutes more than one retail transaction;
16 (7) "Seller", a person who sells prepaid wireless telecommunications service to
17 another person;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (8) "W ireless telecommunications service", commercial mobile radio service as
19 defined by 47 CFR 20.3, as amended.
20 2. (1) Beginning January 1, 2019, there is hereby imposed a prepaid wireless
21 emer gency telephone service char ge on each retail transaction. The amount of such char ge
22 shall be equal to [ three ] four percent of the amount of each retail transaction. The first fifteen
23 dollars of each retail transaction shall not be subject to the service char ge.
24 (2) When prepaid wireless telecommunications service is sold with one or more
25 products or services for a single, nonitemized price, the prepaid wireless emer gency telephone
26 service char ge set forth in subdivision (1) of this subsection shall apply to the entire
27 nonitemized price unless the seller elects to apply such service char ge in the following way:
28 (a) If the amount of the prepaid wireless telecommunications service is disclosed to
29 the consumer as a dollar amount, [ three ] four percent of such dollar amount; or
30 (b) If the seller can identify the portion of the price that is attributable to the prepaid
31 wireless telecommunications service by reasonable and verifiable standards from the seller's
32 books and records that are kept in the regular course of business for other purposes including,
33 but not limited to, nontax purposes, [ three ] four percent of such portion[ ;
34
35 The first fifteen dollars of each transaction under this subdivision shall not be subject to the
36 service char ge ].
37 (3) The prepaid wireless emer gency telephone service char ge shall be collected by the
38 seller from the consumer with respect to each retail transaction occurring in this state. The
39 amount of the prepaid wireless emer gency telephone service char ge shall be either separately
40 stated on an invoice, receipt, or other similar document that is provided to the consumer by
41 the seller or otherwise disclosed to the consumer .
42 (4) For purposes of this subsection, a retail transaction that is ef fected in person by a
43 consumer at a business location of the seller shall be treated as occurring in this state if that
44 business location is in this state, and any other retail transaction shall be treated as occurring
45 in this state if the retail transaction is treated as occurring under chapter 144.
46 (5) The prepaid wireless emer gency telephone service char ge is the liability of the
47 consumer and not of the seller or of any provider; except that, the seller shall be liable to remit
48 all char ges that the seller collects or is deemed to collect.
49 (6) The amount of the prepaid wireless emer gency telephone service char ge that is
50 collected by a seller from a consumer , if such amount is separately stated on an invoice,
51 receipt, or other similar document provided to the consumer by the seller , shall not be
52 included in the base for measuring any tax, fee, surcharge, or other char ge that is imposed by
53 this state, any political subdivision of this state, or any inter governmental agency .
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54 3. (1) Prepaid wireless emer gency telephone service char ges collected by sellers shall
55 be remitted to the department at the times and in the manner provided by state law with
56 respect to sales and use taxes. The department shall establish registration and payment
57 procedures that substantially coincide with the registration and payment procedures that apply
58 under state law . On or after the ef fective date of the service char ge imposed under the
59 provisions of this section, the director of the department of revenue shall perform all
60 functions incident to the administration, collection, enforcement, and operation of the service
61 char ge, and the director shall collect, in addition to the sales tax for the state of Missouri, all
62 additional service char ges imposed in this section. All service char ges imposed under this
63 section together with all taxes imposed under the sales tax law of the state of Missouri shall
64 be collected together and reported upon such forms and under such administrative rules and
65 regulations as may be prescribed by the director , pr ovided that the dir ector shall requ ire a
66 seller to repo rt the number of r etail transactions for which a prep aid wire less
67 emergency telephone service charge is collected under this section, as well as the total
68 dollar amount of each transaction and the total amount of prep aid wir eless emergency
69 telephone service charges collected . All applicable provisions contained in sections
70 144.010 to 144.525 governing the state sales tax and section 32.057 shall apply to the
71 collection of any service char ges imposed under this section except as modified.
72 (2) Beginning on January 1, 2019, and ending on January 31, 2019, when a consumer
73 purchases prepaid wireless telecommunications service in a retail transaction from a seller
74 under this section, the seller shall be allowed to retain one hundred percent of the prepaid
75 wireless emer gency telephone service char ges that are collected by the seller from the
76 consumer . Beginning on February 1, 2019, a seller shall be permitted to deduct and retain
77 [ three ] four percent of prepaid wireless emer gency telephone service char ges that are
78 collected by the seller from consumers. Notwithstanding any provi sion of law to the
79 contrary , if the dir ector of r evenue determines that a seller has not collected the amount
80 of prepa id wir eless emergency telephone charges req uired by this section, such seller
81 shall not be permitted to deduct and ret ain any amount of such charges as allowed in
82 this subdivision, nor shall the seller be permitted to deduct and ret ain any amount of
83 sales tax allowable under section 144.140, for the repor ting period for which the dir ector
84 has determined a deficiency .
85 (3) The department shall establish procedures by which a seller of prepaid wireless
86 telecommunications service may document that a sale is not a retail transaction, which
87 procedures shall substantially coincide with the procedures for documenting sale for resale
88 transactions for sales and use purposes under state law .
89 (4) The department shall deposit all remitted prepaid wireless emer gency telephone
90 service char ges into the general revenue fund for the department's use until eight hundred
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91 thousand one hundred fifty dollars is collected to reimburse its direct costs of administering
92 the collection and remittance of prepaid wireless emer gency telephone service char ges. From
93 then onward, the department shall deposit all remitted prepaid wireless emer gency telephone
94 service char ges into the Missouri 91 1 service trust fund created under section 190.420 within
95 thirty days of receipt for use by the board. After the initial eight hundred thousand one
96 hundred fifty dollars is collected, the department may deduct an amount not to exceed one
97 percent of collected char ges to be retained by the department to reimburse its direct costs of
98 administering the collection and remittance of prepaid wireless emer gency telephone service
99 char ges.
100 (5) The board shall set a rate between twenty-five and one hundred percent of the
101 prepaid wireless emer gency telephone service char ges deposited in the Missouri 91 1 service
102 trust fund collected in counties without a charter form of government, less the deductions
103 authorized in subdivision (4) of this subsection, that shall be remitted to such counties in
104 direct proportion to the amount of char ges collected in each county . The board shall set a rate
105 between sixty-five and one hundred percent of the prepaid wireless emer gency telephone
106 service char ges deposited in the Missouri 91 1 service trust fund collected in counties with a
107 charter form of government and any city not within a county , less the deductions authorized in
108 subdivision (4) of this subsection, that shall be remitted to each such county or city not within
109 a county in direct proportion to the amount of char ges collected in each such county or city
110 not within a county . If a county has an elected emer gency services board, the Missouri 91 1
111 service board shall remit the funds to the elected emer gency services board, except for an
112 emer gency services board originally or ganized under section 190.325 operating within a
113 county with a charter form of government and with more than two hundred thousand but
114 fewer than three hundred fifty thousand inhabitants, in which case the funds shall be remitted
115 to the county's general fund for the purpose of public safety infrastructure. The initial
116 percentage rate set by the board for counties with and without a charter form of government
117 and any city not within a county shall be set by June thirtieth of each applicable year and may
118 be adjusted annually for the first three years, and thereafter the rate may be adjusted every
119 three years; however , at no point shall the board set rates that fall below twenty-five percent
120 for counties without a charter form of government and sixty-five percent for counties with a
121 charter form of government and any city not within a county .
122 (6) Any amounts received by a county or city under subdivision (5) of this subsection
123 shall be used only for purposes authorized in sections 190.305, 190.325, and 190.335. Any
124 amounts received by any county with a charter form of government and with more than six
125 hundred thousand but fewer than seven hundred thousand inhabitants under this section may
126 be used for emer gency service notification systems.
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127 4. (1) A seller that is not a provider shall be entitled to the immunity and liability
128 protections under section 190.455, notwithstanding any requirement in state law regarding
129 compliance with Federal Communications Commission Order 05-1 16.
130 (2) A provider shall be entitled to the immunity and liability protections under section
131 190.455.
132 (3) In addition to the protection from liability provided in subdivisions (1) and (2) of
133 this subsection, each provider and seller and its of ficers, employees, assigns, agents, vendors,
134 or anyone acting on behalf of such persons shall be entitled to the further protection from
135 liability , if any , that is provided to providers and sellers of wireless telecommunications
136 service that is not prepaid wireless telecommunications service under section 190.455.
137 5. The prepaid wireless emer gency telephone service char ge imposed by this section
138 shall be in addition to any other tax, fee, surchar ge, or other char ge imposed by this state, any
139 political subdivision of this state, or any intergo vernmental agency for 91 1 funding purposes.
140 6. The provisions of this section shall become effectiv e unless the governing body of
141 a county or city adopts an ordinance, order , rule, resolution, or regulation by at least a two-
142 thirds vote prohibiting the char ge established under this section from becoming ef fective in
143 the county or city at least forty-five days prior to the ef fective date of this section. If the
144 governing body does adopt such ordinance, order , rule, resolution, or regulation by at least a
145 two-thirds vote, the char ge shall not be collected and the county or city shall not be allowed to
146 obtain funds from the Missouri 91 1 service trust fund that are remitted to the fund under the
147 char ge established under this section. The Missouri 91 1 service board shall, by September 1,
148 2018, notify all counties and cities of the implementation of the char ge established under this
149 section, and the procedures set forth under this subsection for prohibiting the char ge from
150 becoming ef fective.
151 7. Any county or city which prohibited the prepaid wireless emer gency telephone
152 service char ge pursuant to the provisions of subsection 6 of this section may take a vote of the
153 governing body , and notify the department of revenue of the result of such vote to impose
154 such char ge. A vote of at least two-thirds of the governing body is required in order to impose
155 such char ge. The department shall notify the board of notices received [ by ] within sixty days
156 of receiving such notice.
✔
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