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EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1481
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
6107S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 190.460, RSMo, and to enact in lieu thereof one new section relating to wireless
emergency telephone service charges.
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Section A. Section 190.460, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 190.460, 2
to read as follows:3
190.460. 1. As used in this section, the following 1
terms mean: 2
(1) "Applicable percentage": 3
(a) For the purposes of subsection 2 of this section: 4
a. For the period beginning January 1, 2019, and 5
ending December 31, 2026, three percent; and 6
b. Beginning January 1, 2027, and thereafter, four 7
percent; and 8
(b) For the purposes of subdivision (2) of subsection 9
3 of this section: 10
a. For the period beginning February 1, 2019, and 11
ending December 31, 2026, three percent; and 12
b. Beginning January 1, 2027, and thereafter, four 13
percent; 14
(2) "Board", the Missouri 911 service board 15
established under section 650.325; 16
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[(2)] (3) "Consumer", a person who purchases prepaid 17
wireless telecommunications service in a retail transaction; 18
[(3)] (4) "Department", the department of revenue; 19
[(4)] (5) "Prepaid wireless service provider", a 20
provider that provides prepaid wireless service to an end 21
user; 22
[(5)] (6) "Prepaid wireless telecommunications 23
service", a wireless telecommunications service that allows 24
a caller to dial 911 to access the 911 system and which 25
service shall be paid for in advance and is sold in 26
predetermined units or dollars of which the number declines 27
with use in a known amount; 28
[(6)] (7) "Retail transaction", the purchase of 29
prepaid wireless telecommunications service from a seller 30
for any purpose other than resale. The purchase of more 31
than one item that provides prepaid wireless 32
telecommunication service, when such items are sold 33
separately, constitutes more than one retail transaction; 34
[(7)] (8) "Seller", a person who sells prepaid 35
wireless telecommunications service to another person; 36
[(8)] (9) "Wireless telecommunications service", 37
commercial mobile radio service as defined by 47 CFR 20.3, 38
as amended. 39
2. (1) Beginning January 1, 2019, there is hereby 40
imposed a prepaid wireless emergency telephone service 41
charge on each retail transaction. The amount of such 42
charge shall be equal to [three percent] the applicable 43
percentage of the amount of each retail transaction. [The 44
first fifteen dollars of each retail transaction shall not 45
be subject to the service charge.] 46
(2) When prepaid wireless telecommunications service 47
is sold with one or more products or services for a single, 48
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nonitemized price, the prepaid wireless emergency telephone 49
service charge set forth in subdivision (1) of this 50
subsection shall apply to the entire nonitemized price 51
unless the seller elects to apply such service charge in the 52
following way: 53
(a) If the amount of the prepaid wireless 54
telecommunications service is disclosed to the consumer as a 55
dollar amount, [three percent] the applicable percentage of 56
such dollar amount; or 57
(b) If the seller can identify the portion of the 58
price that is attributable to the prepaid wireless 59
telecommunications service by reasonable and verifiable 60
standards from the seller's books and records that are kept 61
in the regular course of business for other purposes 62
including, but not limited to, nontax purposes, [three 63
percent] the applicable percentage of such portion; 64
[The first fifteen dollars of each transaction under this 65
subdivision shall not be subject to the service charge.] 66
(3) The prepaid wireless emergency telephone service 67
charge shall be collected by the seller from the consumer 68
with respect to each retail transaction occurring in this 69
state. The amount of the prepaid wireless emergency 70
telephone service charge shall be either separately stated 71
on an invoice, receipt, or other similar document that is 72
provided to the consumer by the seller or otherwise 73
disclosed to the consumer. 74
(4) For purposes of this subsection, a retail 75
transaction that is effected in person by a consumer at a 76
business location of the seller shall be treated as 77
occurring in this state if that business location is in this 78
state, and any other retail transaction shall be treated as 79
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occurring in this state if the retail transaction is treated 80
as occurring under chapter 144. 81
(5) The prepaid wireless emergency telephone service 82
charge is the liability of the consumer and not of the 83
seller or of any provider; except that, the seller shall be 84
liable to remit all charges that the seller collects or is 85
deemed to collect. 86
(6) The amount of the prepaid wireless emergency 87
telephone service charge that is collected by a seller from 88
a consumer, if such amount is separately stated on an 89
invoice, receipt, or other similar document provided to the 90
consumer by the seller, shall not be included in the base 91
for measuring any tax, fee, surcharge, or other charge that 92
is imposed by this state, any political subdivision of this 93
state, or any intergovernmental agency. 94
3. (1) Prepaid wireless emergency telephone service 95
charges collected by sellers shall be remitted to the 96
department at the times and in the manner provided by state 97
law with respect to sales and use taxes. The department 98
shall establish registration and payment procedures that 99
substantially coincide with the registration and payment 100
procedures that apply under state law. On or after the 101
effective date of the service charge imposed under the 102
provisions of this section, the director of the department 103
of revenue shall perform all functions incident to the 104
administration, collection, enforcement, and operation of 105
the service charge, and the director shall collect, in 106
addition to the sales tax for the state of Missouri, all 107
additional service charges imposed in this section. All 108
service charges imposed under this section together with all 109
taxes imposed under the sales tax law of the state of 110
Missouri shall be collected together and reported upon such 111
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forms and under such administrative rules and regulations as 112
may be prescribed by the director, provided that the 113
director shall require a seller to report the number of 114
retail transactions for which a prepaid wireless emergency 115
telephone service charge is collected under this section, as 116
well as the total dollar amount of each transaction and the 117
total amount of prepaid wireless emergency telephone service 118
charges collected. All applicable provisions contained in 119
sections 144.010 to 144.525 governing the state sales tax 120
and section 32.057 shall apply to the collection of any 121
service charges imposed under this section except as 122
modified. 123
(2) Beginning on January 1, 2019, and ending on 124
January 31, 2019, when a consumer purchases prepaid wireless 125
telecommunications service in a retail transaction from a 126
seller under this section, the seller shall be allowed to 127
retain one hundred percent of the prepaid wireless emergency 128
telephone service charges that are collected by the seller 129
from the consumer. Beginning on February 1, 2019, a seller 130
shall be permitted to deduct and retain [three percent] the 131
applicable percentage of prepaid wireless emergency 132
telephone service charges that are collected by the seller 133
from consumers. Notwithstanding any provision of law to the 134
contrary, if the director of revenue determines that a 135
seller has not collected the amount of prepaid wireless 136
emergency telephone service charges required by this 137
section, such seller shall not be permitted to deduct and 138
retain any amount of such charges as allowed in this 139
subdivision, nor shall the seller be permitted to deduct and 140
retain any amount of sales tax allowable under section 141
144.140, for the reporting period for which the director has 142
determined a deficiency. 143
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(3) The department shall establish procedures by which 144
a seller of prepaid wireless telecommunications service may 145
document that a sale is not a retail transaction, which 146
procedures shall substantially coincide with the procedures 147
for documenting sale for resale transactions for sales and 148
use purposes under state law. 149
(4) The department shall deposit all remitted prepaid 150
wireless emergency telephone service charges into the 151
general revenue fund for the department's use until eight 152
hundred thousand one hundred fifty dollars is collected to 153
reimburse its direct costs of administering the collection 154
and remittance of prepaid wireless emergency telephone 155
service charges. From then onward, the department shall 156
deposit all remitted prepaid wireless emergency telephone 157
service charges into the Missouri 911 service trust fund 158
created under section 190.420 within thirty days of receipt 159
for use by the board. After the initial eight hundred 160
thousand one hundred fifty dollars is collected, the 161
department may deduct an amount not to exceed one percent of 162
collected charges to be retained by the department to 163
reimburse its direct costs of administering the collection 164
and remittance of prepaid wireless emergency telephone 165
service charges. 166
(5) The board shall set a rate between twenty-five and 167
one hundred percent of the prepaid wireless emergency 168
telephone service charges deposited in the Missouri 911 169
service trust fund collected in counties without a charter 170
form of government, less the deductions authorized in 171
subdivision (4) of this subsection, that shall be remitted 172
to such counties in direct proportion to the amount of 173
charges collected in each county. The board shall set a 174
rate between sixty-five and one hundred percent of the 175
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prepaid wireless emergency telephone service charges 176
deposited in the Missouri 911 service trust fund collected 177
in counties with a charter form of government and any city 178
not within a county, less the deductions authorized in 179
subdivision (4) of this subsection, that shall be remitted 180
to each such county or city not within a county in direct 181
proportion to the amount of charges collected in each such 182
county or city not within a county. If a county has an 183
elected emergency services board, the Missouri 911 service 184
board shall remit the funds to the elected emergency 185
services board, except for an emergency services board 186
originally organized under section 190.325 operating within 187
a county with a charter form of government and with more 188
than two hundred thousand but fewer than three hundred fifty 189
thousand inhabitants, in which case the funds shall be 190
remitted to the county's general fund for the purpose of 191
public safety infrastructure. The initial percentage rate 192
set by the board for counties with and without a charter 193
form of government and any city not within a county shall be 194
set by June thirtieth of each applicable year and may be 195
adjusted annually for the first three years, and thereafter 196
the rate may be adjusted every three years; however, at no 197
point shall the board set rates that fall below twenty-five 198
percent for counties without a charter form of government 199
and sixty-five percent for counties with a charter form of 200
government and any city not within a county. 201
(6) Any amounts received by a county or city under 202
subdivision (5) of this subsection shall be used only for 203
purposes authorized in sections 190.305, 190.325, and 204
190.335. Any amounts received by any county with a charter 205
form of government and with more than six hundred thousand 206
but fewer than seven hundred thousand inhabitants under this 207
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section may be used for emergency service notification 208
systems. 209
4. (1) A seller that is not a provider shall be 210
entitled to the immunity and liability protections under 211
section 190.455, notwithstanding any requirement in state 212
law regarding compliance with Federal Communications 213
Commission Order 05-116. 214
(2) A provider shall be entitled to the immunity and 215
liability protections under section 190.455. 216
(3) In addition to the protection from liability 217
provided in subdivisions (1) and (2) of this subsection, 218
each provider and seller and its officers, employees, 219
assigns, agents, vendors, or anyone acting on behalf of such 220
persons shall be entitled to the further protection from 221
liability, if any, that is provided to providers and sellers 222
of wireless telecommunications service that is not prepaid 223
wireless telecommunications service under section 190.455. 224
5. The prepaid wireless emergency telephone service 225
charge imposed by this section shall be in addition to any 226
other tax, fee, surcharge, or other charge imposed by this 227
state, any political subdivision of this state, or any 228
intergovernmental agency for 911 funding purposes. 229
6. The provisions of this section shall become 230
effective unless the governing body of a county or city 231
adopts an ordinance, order, rule, resolution, or regulation 232
by at least a two-thirds vote prohibiting the charge 233
established under this section from becoming effective in 234
the county or city at least forty-five days prior to the 235
effective date of this section. If the governing body does 236
adopt such ordinance, order, rule, resolution, or regulation 237
by at least a two-thirds vote, the charge shall not be 238
collected and the county or city shall not be allowed to 239
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obtain funds from the Missouri 911 service trust fund that 240
are remitted to the fund under the charge established under 241
this section. The Missouri 911 service board shall, by 242
September 1, 2018, notify all counties and cities of the 243
implementation of the charge established under this section, 244
and the procedures set forth under this subsection for 245
prohibiting the charge from becoming effective. 246
7. Any county or city which prohibited the prepaid 247
wireless emergency telephone service charge pursuant to the 248
provisions of subsection 6 of this section may take a vote 249
of the governing body, and notify the department of revenue 250
of the result of such vote to impose such charge. A vote of 251
at least two-thirds of the governing body is required in 252
order to impose such charge. The department shall notify 253
the board of notices received by within sixty days of 254
receiving such notice. 255
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