South Carolina enacts significant changes in municipal charges to telecommunications providers.

South Carolina recently enacted legislation to further define service address and postpaid calling service. The legislation added language to the definition of service address to specify that a sale of postpaid calling services is sourced to the origination point of the telecommunications signal as first identified by either (1) the seller’s telecommunications system, or (2) information received by the seller from its service provider, if the system used to transport such signals is not that of the seller. The state defined postpaid calling service as the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number that is not associated with the origination or termination of the telecommunications service. Also included in the legislation was a change of the maximum business license tax levied by a municipality for telecommunications services. This tax was increased to 1% of the gross income derived from the retail sale of such services. Lastly, the legislation clarified the provision related to public rights of way franchise or consent fees and administrative fees. (2003 SC H 3530, South Carolina, effective January 13, 2005)

Posted on January 24, 2005