Bill > S0712

This bill revises the definition of "prepaid calling arrangement" to clarify which services are subject to sales tax, expanding the definition to include mobile communications services that are paid for in advance and sold in predetermined units that expire or decline with use, provided certain conditions are met, such as the termination of service when units are exhausted and limitations on using those units for non-mobile services. It also clarifies that the sale or recharge of these arrangements, even without a physical item, is treated as a sale of tangible personal property for tax purposes, and specifies that no additional tax is due if prepaid units are used for services other than communications, or for products. The bill also makes technical amendments to ensure consistency in language and applies these changes retroactively for tax purposes without creating new rights to refunds or assessments for taxes already paid or unpaid before the effective date of July 1, 2014.