§ 12-36-910 — Five percent tax on tangible personal property; laundry services, electricity, communication services, and manufacturer-consumed goods.

(A) A sales tax, equal to five percent of the gross proceeds of sales, is imposed upon every person engaged or continuing within this State in the business of selling tangible personal property at retail. (B) The sales tax imposed by this article also applies to the: (1) gross proceeds accruing or proceeding from the business of providing or furnishing any laundering, dry cleaning, dyeing, or pressing service, but does not apply to the gross proceeds derived from coin-operated laundromats and dry cleaning machines; (2) gross proceeds accruing or proceeding from the sale of electricity; (3)(a) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages. Gross proceeds from the sale of prepaid wireless calling arrangements subject to tax at retail pursuant to item (5) of this subsection are not subject to tax pursuant to this item. Effective for bills rendered after August 1, 2002, charges for mobile telecommunications services subject to the tax under this item must be sourced in accordance with the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code. The term "charges for mobile telecommunications services" is defined for purposes of this section the same as it is defined in the Mobile Telecommunications Sourcing Act. All other definitions and provisions of the Mobile Telecommunications Sourcing Act as provided in Title 4 of the United States Code are adopted. Telecommunications services are sourced in accordance with Section 12-36-1920; (b)(i) for purposes of this item, a "bundled transaction" means a transaction consisting of distinct and identifiable properties or services, which are sold for one nonitemized price but which are treated differently for tax purposes; (ii) for bills rendered on or after January 1, 2004, that include telecommunications services in a bundled transaction, if the nonitemized price is attributable to properties or services that are taxable and nontaxable, the portion of the price attributable to any nontaxable property or service is subject to tax unless the provider can reasonably identify that portion from its books and records kept in the regular course of business for purposes other than sales taxes; (4) fair market value of tangible personal property manufactured within this State, and used or consumed within this State by the manufacturer; (5) gross proceeds accruing or proceeding from the sale or recharge at retail for prepaid wireless calling arrangements; (a) "Prepaid wireless calling arrangements" means communication services that: (i) are used exclusively to purchase wireless telecommunications; (ii) are purchased in advance; (iii) allow the purchaser to originate telephone calls by using an access number, authorization code, or other means entered manually or electronically; and (iv) are sold in units or dollars which decline with use in a known amount; (b) All charges for prepaid wireless calling arrangements must be sourced to the: (i) location in this State where the over-the-counter sale took place; (ii) shipping address if the sale did not take place at the seller's location and an item is shipped; or (iii) either the billing address or location associated with the mobile telephone number if the sale did not take place at the seller's location and no item is shipped. (C) Notwithstanding other provisions in this article or Article 13, Chapter 36, of this title, the sales or use tax imposed by those articles does not apply to the gross proceeds accruing or proceeding from charges for or use of data processing. As used in this subsection, "data processing" means the manipulation of information furnished by a customer through all or part of a series of operations involving an interaction of procedures, processes, methods, personnel, and computers. It also means the electronic transfer of or access to that information. Examples of the processing include, without limitation, summarizing, computing, extracting, storing, retrieving, sorting, sequencing, and the use of computers.

Legislative History

HISTORY: 1990 Act No. 612, Part II, SECTION 74A; 1992 Act No. 361, SECTION 16(B); 1995 Act No. 145, Part II, SECTION 105A; 2001 Act No. 89, SECTIONS 25, 26, eff September 1, 2001 [effective the first day of the second month following approval by the Governor (approved July 20, 2001)]; 2002 Act No. 334, SECTION 11, eff June 24, 2002; 2003 Act No. 69, SECTION 3.OO, eff June 18, 2003; 2005 Act No. 161, SECTION 19.B, eff October 1, 2005; 2005 Act No. 161, SECTION 30.B, eff September 1, 2005; 2006 Act No. 386, SECTION 21.A, eff October 1, 2005; 2006 Act No. 388, Pt I, SECTION 1.B.1, eff October 1, 2006; 2007 Act No. 115, SECTION 3.A, eff November 1, 2007; 2011 Act No. 32, SECTION 2.B, eff September 1, 2011. Editor's Note 2011 Act No. 32, SECTION 2.E., provides as follows: "Notwithstanding the general effective date provided in this act, the provisions of this section take effect on the first day of the third month beginning after the date of approval of this act."