Delaware General Assembly


CHAPTER 101

FORMERLY

HOUSE BILL NO. 215

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES TAXES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend § 5501(1) a. of Title 30 of the Delaware Code, by striking subparagraph (iii) in its entirety and substituting in lieu thereof the following:

"(iii) intrastate telephone services (which shall be interpreted to include intrastate commercial mobile radio services but shall not include electronic paging services) and telegraph communication services; and".

Section 3. Amend § 5501, Title 30 of the Delaware Code, by re-designating subsection (6) as subsection (7) and by adding thereto a new subsection (6) to read as follows:

"(6 ) `Intrastate commercial mobile radio services' shall mean communication services that originate and terminate in Delaware utilizing a network of radio receivers and transmitters organized as 'cells' for the receipt and relay of voice or other source signals to or from instruments, whether or not the signals are also transmitted through fixed lines or wires, but shall not include electronic paging services. The origin of intrastate cellular communication service shall be determined by the location of the first cell site from which a call is initiated or, with the permission of the Director of Revenue, by any other reasonable means.".

Section 4. Amend § 5506(e), Title 30 of the Delaware Code, by adding to the end of said subsection the following sentence:

"There shall be a presumption that all cellular communication services are provided to nonresidential consumers or users unless it can be demonstrated that the services are charged to a service address which is a residence and which has no other telephone service. Such presumption may be rebutted by the consumer a showing to the Division of Revenue that the use of the service took place inside the user's or consumer's residence.".

Section 5. This Act shall be effective for tax periods commencing after February 29, 1992.

Section 6. The enactment of this legislation shall create no implication with respect to the services or charges therefore subject to taxation hereunder prior to the date of the enactment of this legislation. The Director shall have the authority to apply the provisions of this Act, within his sound discretion, to such issues as activation, access, and usage charges.

Approved July 01,1999