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When a dealer collects the sales price for a retail sale of communications service or prepaid communications service from a consumer, such dealer shall collect a 911 surcharge of one dollar and sixteen cents ($1.16). Dealers shall be entitled to retain as an administrative fee an amount equal to two percent (2%) of the collections of the 911 surcharge on the retail sale of communications service.
Any change in the 911 surcharge amount set in subdivision (a)(1) shall be set at a level that is sufficient to fully fund the mandatory disbursements to emergency communications districts, the operational expenses of the state emergency communications board, referred to as “board” in this section, and the Tennessee relay services/telecommunications devices access program (TRS/TDAP program) as provided in § 65-21-115. In the event of any revenue shortfall, mandatory disbursements to the emergency communications districts and the TRS/TDAP program shall be given priority. Revenues from the surcharge authorized in this section shall be used to support the long-term solvency and operations of emergency communications districts, as well as reasonable and necessary administrative and operational expenses of the board and the 911 Emergency Communications Fund.
If the sales price for a retail sale of communications service is collected by a dealer less frequently than monthly, the 911 surcharge shall still apply and be collected for each month or partial month for which the sales price is collected.
The board may increase the 911 surcharge upon determination of a need for additional funds after a public hearing before the board. At least thirty (30) days' notice shall be provided before the public hearing. There shall be opportunity for public comment at the public hearing. No increase in the 911 surcharge shall take effect until ratified by a joint resolution of the general assembly. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67.
The board may decrease the amount of the 911 surcharge after providing thirty (30) days' notice and opportunity for public comment at a public hearing of the board. After determination of a decrease, the board must give at least sixty (60) days' notice to the speaker of the house of representatives, the speaker of the senate, and the governor. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67.
It is the intent of the general assembly that the 911 surcharge be established at the lowest rate practicable consistent with the purposes of this section. The board shall report annually to the finance, ways and means committees of the senate and house of representatives on the financial status and solvency of emergency communications districts, status of the implementation of a uniform statewide 911 system and the status, level and solvency of the 911 Emergency Communications Fund.
The 911 surcharge applicable to any multi-channel or other complex service that is capable of simultaneously carrying multiple voice and data transmissions, including, but not limited to, private branch exchange service, that is provided to a fixed location with a unique street address or physically identifiable location shall be calculated by applying one (1) 911 surcharge for each simultaneous outbound call that can be placed to 911 using such service.
The maximum number of 911 surcharges that may be imposed on a single subscriber of retail communications services provided to a fixed location shall not exceed two hundred (200) surcharges per building with a unique street address or physically identifiable location. A communications service that is priced lower than five dollars ($5.00) per month or a prepaid communications service priced below a one-time fee of less than ten dollars ($10.00) shall not constitute a retail communications service for purposes of the 911 surcharge and shall not be subject to a 911 surcharge in accordance with subsection (a).
Dealers of communications service shall collect the 911 surcharge from their customers and, when practicable, display the 911 surcharge as a separate line item on customer bills or invoices. Dealers of prepaid communications service shall collect the 911 surcharge at the point of the sale. 911 surcharge revenue actually collected by a dealer shall be remitted to the department of revenue monthly. No additional or local 911 surcharges on communications service or prepaid communications service shall be permitted. Dealers of retail communications service shall have no obligation to remit surcharges that they are unable to collect from subscribers.
Dealers of communications service and prepaid communications service shall remit the 911 surcharge to the department of revenue in the manner provided by the Retailers' Sales Tax Act, compiled in title 67, chapter 6, with respect to the sales and use taxes. The department of revenue shall establish registration and payment procedures for such dealers that substantially coincide with the registration and payment procedures that apply under the Retailers' Sales Tax Act.
A dealer of prepaid communications shall be permitted to deduct and retain up to two percent (2%) of 911 surcharges that are collected by the dealer from the consumers.
The audit and appeal procedures applicable under title 67, chapter 1, shall apply to the 911 surcharges on communications service and prepaid communications service. Any audit of a dealer of communications service or prepaid communications service shall coincide with the department's normal auditing of the dealer for sales and use tax purposes.
The penalty and interest provisions under title 67, chapter 1, part 8, shall apply to the 911 surcharges on communications service and prepaid communications service.
The department of revenue shall pay all remitted 911 surcharges to the board within thirty (30) days of receipt, for use of the board in accordance with part 3 of this chapter. The department of revenue may deduct an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the collected charges.
The 911 surcharge is the liability of the subscriber and not of the dealer. Dealers are authorized to demand payment from any subscriber who fails to pay any authorized 911 surcharge, and may take legal action, in the sole discretion of the dealer, to collect the 911 surcharge from any such subscriber, or may, in the alternative, and without any liability to such subscriber for any losses or damages that result from termination, terminate all service to such subscriber.
Notwithstanding this section to the contrary, the board may withhold such distribution to an emergency communications district, if the district is operating in, or fails to correct a specific violation of state law. This may include, but not be limited to, the failure to submit an annual budget or audit, operating contrary to the open meeting requirements of title 8, chapter 44, part 1, or failure to comply with any requirements of this chapter 86. Further, the board may also withhold such distribution if it deems that the district is not taking sufficient actions or acting in good faith to establish, maintain, or advance E911 service for the citizens of an emergency communications district.
The department of revenue shall have the exclusive authority to audit and to bring any legal action to collect the 911 surcharge collected and remitted by any dealer. The exclusive authority by the department includes, but is not limited to, nonpayment or under-collection errors or other causes of action that relate to the collection of 911 surcharges.