PETITION OF:

SECTION 1. The definition of "Place of primary use" in section 1 of chapter 64H of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by striking out the word "mobile".

SECTION 2. The definition of "Place of primary use" in said section of said chapter 64H of the General Laws, as so appearing, is hereby further amended by inserting after the word "which" the second time it appears the following words:- in the case of mobile telecommunications service

SECTION 3. Said section 1 of said chapter 64H of the General Laws, as so appearing, is hereby amended by inserting after the definition of "Place of primary use" the following 2 definitions:- "Post-paid calling service", a telecommunication service obtained by making payment on a call-by-call basis either through the use of a credit or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service that would be a prepaid calling service except it is not exclusively a telecommunications service. "Private communication service", a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels.

SECTION 4. The definition of"Sale at retail" in said section 1 of said chapter 64H of the General Laws, as so appearing, is hereby further amended by striking out the fifth sentence and by inserting in place thereof the following sentence:- In the case of interstate telecommunication services other than mobile telecommunications services, post-paid calling services and private telecommunication services, the sale of such services shall be deemed a sale within the commonwealth if the telecommunication is either originated or received at a location in the commonwealth and the services are charged to a service address located in the commonwealth.

SECTION 5. The definition of "Sale at retail" in said section 1 of said chapter 64H, as so appearing, is hereby further amended by inserting after the sixth sentence the following two sentences:- In the case of a post-paid calling service, the sale of such service shall be deemed a sale within the commonwealth if the origination point of the telecommunications signal as first identified by either (i) the seller's telecommunications system, or (ii) information received by the seller from its service provider, where the system used to transport such signals is not that of the seller, is in this commonwealth. In the case of a private communication service, the sale of such service shall be deemed a sale within the commonwealth if the service is apportioned to this commonwealth in accordance with section X of this Chapter.

SECTION 6. Said section 1 of said chapter 64H of the General Laws, as so appearing, is hereby amended by inserting after the definition of "Services" the following definition:- "Service address", (1) the location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid. (2) If the location in (1) is not known, service address means the origination point of the signal of the telecommunications service first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller. (3) If the location in (1) and (2) is not known, service address means the location of the customer's place of primary use.

SECTION 7. Chapter 64H of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by adding the following section:- A sale of private communication service is apportioned to this commonwealth as follows: i. Service for a separate charge related to a customer channel termination point is apportioned to this commonwealth if such customer channel termination point is located within this commonwealth. ii. Service where all customer channel termination points are located entirely within this commonwealth is apportioned to this commonwealth. iii. Service for segments of a channel between two customer channel termination points one of which is located in this commonwealth and the other is located within another state and which segments of channel are separately charged is apportioned 50% to this commonwealth. iv. Service for segments of a channel located in this commonwealth and in other states and which segments are not separately billed is apportioned to this commonwealth based on the percentage determined by dividing the number of customer channel termination points in this commonwealth by the total number of customer channel termination points.

SECTION 8. Said chapter 64H of the General Laws, as so appearing, is hereby amended by adding the following section:- In the ease of a bundled transaction of telecommunication services, if the price is attributable to services that are taxable and services that are nontaxable, the portion of the price attributable to the nontaxable services shall be subject to tax unless the provider can reasonably identify such portion from its books and records kept in the regular course of business for other purposes.

SECTION. 9. This act shall take effect immediately, provided however, that a telecommunications service provider may use the rules in sections 1 through 7 of this act or any other reasonable method consistently applied in all jurisdictions until bills issued on or after January 1, 2008.