Sourcing of particular types of telecommunications services
Sec. 16. The sale of the following telecommunications services
shall be sourced to each level of taxing jurisdiction as follows:
(1) A sale of mobile telecommunications services, other than air
to ground radiotelephone service and prepaid calling service, is
sourced to the customer's place of primary use as required by
the Mobile Telecommunications Sourcing Act and IC 6-8.1-15.
(2) A sale of post paid calling service is sourced to the
origination point of the telecommunications signal as first
identified by either:
(A) the seller's telecommunications system; or
(B) information received by the seller from its service
provider, where the system used to transport such signals is
not that of the seller.
(3) A sale of prepaid calling service is sourced in the following
manner:
(A) When the service is received by the purchaser at a
business location of the seller, the sale is sourced to that
business location.
(B) When the service is not received by the purchaser at a
business location of the seller, the sale is sourced to the
location where receipt by the purchaser (or the purchaser's
donee, designated as such by the purchaser) occurs,
including the location indicated by instructions for delivery
to the purchaser (or donee), known to the seller.
(C) When clauses (A) and (B) do not apply, the sale is
sourced to the location indicated by an address for the
purchaser that is available from the business records of the
seller that are maintained in the ordinary course of the
seller's business when use of this address does not constitute
bad faith.
(D) When clauses (A) through (C) do not apply, the sale is
sourced to the location indicated by an address for the
purchaser obtained during the consummation of the sale,
including the address of a purchaser's payment instrument,
if no other address is available, when use of this address
does not constitute bad faith.
(E) When clauses (A) through (D) do not apply, including
the circumstance in which the seller is without sufficient
information to apply the previous clauses, the location will
be determined by either:
(i) the address from which tangible personal property was
shipped, from which any digital good or computer
software delivered electronically was first available for
transmission by the seller, or from which the service was
provided (disregarding for these purposes any location that
merely provided the digital transfer of the product sold);
or
(ii) in the case of a sale of mobile telecommunications
service that is a prepaid telecommunications service, the
location associated with the mobile telephone number.
(4) A sale of a private communications service is sourced as
follows:
(A) Service for a separate charge related to a customer
channel termination point is sourced to each level of
jurisdiction in which such customer channel termination
point is located.
(B) Service where all customer termination points are
located entirely within one (1) jurisdiction or level of
jurisdiction is sourced in such jurisdiction in which the
customer channel termination points are located.
(C) Service for segments of a channel between two (2)
customer channel termination points located in different
jurisdictions and which segments of channel are separately
charged is sourced fifty percent (50%) in each level of
jurisdiction in which the customer channel termination
points are located.
(D) Service for segments of a channel located in more than
one (1) jurisdiction or level of jurisdiction and which
segments are not separately billed is sourced in each
jurisdiction based on the percentage determined by dividing
the number of customer channel termination points in such
jurisdiction by the total number of customer channel
termination points.
As added by P.L.257-2003, SEC.31.
Last modified: May 28, 2006