HRS § 239-24 — Effect of customer's failure to provide its place of primary use; effect of aggregation or segregation of charges


House Bill
[§239-24] Effect of customer's failure to
provide its place of primary use; effect of aggregation or segregation of
charges. (a) 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.
(b) 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.
(c) 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.
(d) A home service provider shall be
responsible for obtaining and maintaining the customer's place of primary use.
Subject to a determination by the department that the customer's place of
primary use does not reflect the correct taxing jurisdiction, and if the home
service provider's reliance on information provided by its customer is in good
faith, a home service provider may rely on the applicable residential or
business street address supplied by the customer and the home service provider
shall not be held liable for any additional taxes, charges, or fees that are
passed on to the customer as a separate itemized charge; provided that a home
service provider may treat the address used by the home service provider for
tax purposes under a service contract or agreement in effect on July 28, 2002,
as the customer's place of primary use for the remaining term of the contract
or agreement, excluding any renewal of the contract or agreement.