An Act relative to the bundled cell phone taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill addresses the sales tax on mobile telecommunications devices when they are purchased with a service contract. Currently, sales tax is often not applied to the device itself when a customer signs up for a service agreement. This bill aims to clarify and standardize the application of sales tax on these bundled purchases, ensuring consistent taxation across the state.
Key provisions
- Requires sales tax to be applied to the cost of mobile telecommunications devices purchased with a service contract.
- Clarifies the definition of a ‘service contract’ for sales tax purposes.
- Specifies that the sales tax should be applied to the total cost of the device and the service contract.
- Addresses potential exemptions for low-income consumers.
Who is affected
- Consumers purchasing mobile phones with service contracts.
- Mobile phone retailers and service providers.
- The state’s Department of Revenue.
Notable changes
- Changes the current practice of potentially not applying sales tax to the device portion of bundled sales.
- Creates a more consistent sales tax application for mobile phone purchases.
Bill text
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Sponsors
Official sponsors from legislative records.
5 on record
Primary sponsor
Cosponsors
Bradley H. Jones Jr.
Joseph D. McKenna
Kimberly N. Ferguson
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