1.A home service provider is to be held harmless from any tax, charge, or fee liability in
this state that otherwise would be due solely as a result of an assignment of a street
address to an incorrect taxing jurisdiction if, subject to subsection 4, the home service
provider employs an enhanced zip code to assign each street address to a specific
taxing jurisdiction for each level of taxing jurisdiction and exercises due diligence at
each level of taxing jurisdiction to ensure that each street address is assigned to the
correct taxing jurisdiction. If an enhanced zip code overlaps boundaries of taxing
jurisdictions of the same level, the home service provider must designate one specific
jurisdiction within the enhanced zip code for use in taxing the activity for the enhanced
zip code for
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1. A home service provider is to be held harmless from any tax, charge, or fee liability in
this state that otherwise would be due solely as a result of an assignment of a street
address to an incorrect taxing jurisdiction if, subject to subsection 4, the home service
provider employs an enhanced zip code to assign each street address to a specific
taxing jurisdiction for each level of taxing jurisdiction and exercises due diligence at
each level of taxing jurisdiction to ensure that each street address is assigned to the
correct taxing jurisdiction. If an enhanced zip code overlaps boundaries of taxing
jurisdictions of the same level, the home service provider must designate one specific
jurisdiction within the enhanced zip code for use in taxing the activity for the enhanced
zip code for each level of taxing jurisdiction. Any enhanced zip code assignment
changed in accordance with subsection 4 is in compliance with this subsection. For
purposes of this subsection, there is a rebuttable presumption that a home service
provider has exercised due diligence if the home service provider demonstrates that it
has:
a. Expended reasonable resources to implement and maintain an appropriately
detailed electronic database of street address assignments to taxing jurisdictions;
b. Implemented and maintained reasonable internal controls to promptly correct
misassignments of street addresses to taxing jurisdictions; and
c. Used all reasonably obtainable and usable data pertaining to municipal
annexations, incorporations, reorganizations, and any other changes in
jurisdictional boundaries that materially affect the accuracy of the database.
2. A home service provider is responsible for obtaining and maintaining the customer's
place of primary use. Subject to subsection 4 and if the home service provider's
reliance on information provided by its customer is in good faith, a taxing jurisdiction
shall allow a home service provider to rely on the applicable residential or business
street address supplied by the home service provider's customer and not hold a home
service provider liable for any additional taxes, charges, or fees based on a different
determination of the place of primary use for taxes, charges, or fees that are
customarily passed on to the customer as a separate itemized charge.
3. Except as provided in subsection 4, a taxing jurisdiction shall allow a home service
provider to treat the address used by the home service provider for tax purposes for
any customer under a service contract or agreement in effect on or before July 28,
2002, as that customer's place of primary use for the remaining term of the service
contract or agreement, excluding any extension or renewal of the service contract or
agreement, for purposes of determining the taxing jurisdictions to which taxes,
charges, or fees on charges for mobile telecommunications services are remitted.
4. A taxing jurisdiction or the state on behalf of any taxing jurisdiction may:
a. Determine that the address used for purposes of determining the taxing
jurisdictions to which taxes, charges, or fees for mobile telecommunications
services are remitted does not meet the definition of place of primary use and
give binding notice to the home service provider to change the place of primary
use on a prospective basis from the date of notice of determination if the taxing
jurisdiction making the determination is not the state, the taxing jurisdiction
obtains the consent of all affected taxing jurisdictions within this state before
giving the notice of determination, and before the taxing jurisdiction gives the
notice of determination, the customer is given an opportunity to demonstrate in
accordance with applicable state or local tax, charge, or fee administrative
procedures that the address is the customer's place of primary use.
b. Determine that the assignment of a taxing jurisdiction by a home service provider
under subsection 1 does not reflect the correct taxing jurisdiction and give binding
notice to the home service provider to change the assignment on a prospective
basis from the date of notice of determination if the taxing jurisdiction making the
determination is not the state, the taxing jurisdiction obtains the consent of all
affected taxing jurisdictions within the state before giving the notice of
determination and the home service provider is given an opportunity to
demonstrate in accordance with applicable state or local tax, charge, or fee
administrative procedures that the assignment reflects the correct taxing
jurisdiction.
5. Nothing in this chapter modifies, impairs, supersedes, or authorizes the modification,
impairment, or supersession of any law allowing a taxing jurisdiction to collect a tax,
charge, or fee from a customer that has failed to provide its place of primary use.
6. If a taxing jurisdiction does not otherwise subject charges for mobile
telecommunications services to taxation and if these charges are aggregated with and
not separately stated from charges that are subject to taxation, then the charges for
nontaxable mobile telecommunications services may be subject to taxation unless the
home service provider can reasonably identify charges not subject to the tax, charge,
or fee from its books and records that are kept in the regular course of business.
7. If a taxing jurisdiction does not subject charges for mobile telecommunications
services to taxation, a customer may not rely upon the nontaxability of charges for
mobile telecommunications services unless the customer's home service provider
separately states the charges for nontaxable mobile telecommunications services from
taxable charges or the home service provider elects, after receiving a written request
from the customer in the form required by the provider, to provide verifiable data based
upon the home service provider's books and records that are kept in the regular
course of business that reasonably identifies the nontaxable charges.