Vermont § 7521 - Charge imposed; wholesale exemption [Subsection

§ 7521. Charge imposed; wholesale exemption [Subsection

• (a) effective until July 1, 2025; see also subsection (a) effective July
  1, 2025 set out below.] (a) A Universal Service Charge is imposed on all retail telecommunications service provided
  to a Vermont address. Where the location of a service and the location receiving the
  bill differ, the location of the service shall be used to determine whether the Charge
  applies. The Charge is imposed on the person purchasing the service, but shall be
  collected by the telecommunications provider. Each telecommunications service provider
  shall include in its tariffs filed at the Public Utility Commission a description
  of its billing procedures for the Universal Service Charge. [Subsection (a) effective July 1, 2025; see also subsection (a) effective until July
  1, 2025 set out above.] (a) A Universal Service Charge is imposed on all retail telecommunications service provided
  to a Vermont address. Where the location of a service and the location receiving the
  bill differ, the location of the service shall be used to determine whether the Charge
  applies. The Charge is imposed on the person purchasing the service, but shall be
  collected by the telecommunications service provider. As applicable, each telecommunications
  service provider shall include in its tariffs filed at the Public Utility Commission
  a description of its billing procedures for the Universal Service Charge. (b) The Universal Service Charge shall not apply to wholesale transactions between telecommunications
  service providers where the service is a component part of a service provided to an
  end user. This exemption includes network access charges and interconnection charges
  paid to a local exchange carrier. [Subsection (c) effective until July 1, 2025; see also subsection (c) effective July
  1, 2025 set out below.] (c) In the case of mobile telecommunications service, the Universal Service Charge is
  imposed when the customer’s place of primary use is in Vermont. The terms “customer,”
  “place of primary use,” and “mobile telecommunications service” have the meanings
  given in 4 U.S.C. § 124. All provisions of 32 V.S.A. § 9782 shall apply to the imposition of the Universal Service Charge under this section. [Subsection (c) effective July 1, 2025; see also subsection (c) effective until July
  1, 2025 set out above.] (c) In the case of mobile telecommunications service, the Universal Service Charge is
  imposed when the customer’s place of primary use is in Vermont. As used in this subsection,
  the terms “customer ” and “place of primary use,” have the meanings given in 4 U.S.C. § 124. All provisions of 32 V.S.A. § 9782 shall apply to the imposition of the Universal Service Charge under this section. [Subsection (d) effective until July 1, 2025; see also subsection (d) effective July
  1, 2025 set out below.] (d) [Repealed.] [Subsection (d) effective July 1, 2025; see also subsection (d) effective until July
  1, 2025 set out above.] (d) In the case of interconnected VoIP service, the Universal Service Charge is imposed
  when the customer’s place of primary use is in Vermont. As used in this subsection,
  the term “place of primary use” means the street address where the customer’s use
  of interconnected VoIP service primarily occurs or a reasonable proxy as determined
  by the interconnected VoIP service provider, such as the customer’s registered location
  for 911 purposes. [Subdivision (e)(1) effective until July 1, 2025; see also subdivision (e)(1) effective
  July 1, 2025 set out below.] (e)(1) Notwithstanding any other provision of law to the contrary, beginning on January 1,
  2020, the Universal Service Charge shall be imposed on all retail sales of prepaid
  wireless telecommunications service subject to the sales and use tax imposed under
  32 V.S.A. chapter 233. The charges shall be collected by sellers or marketplace facilitators collecting
  sales tax pursuant to 32 V.S.A. § 9713 and remitted to the Department of Taxes in the manner provided under 32 V.S.A. chapter 233. Upon receipt of the charges, the Department of Taxes shall have 30 days to remit
  the funds to the fiscal agent selected under section 7503 of this chapter. The Commissioner
  of Taxes shall establish registration and payment procedures applicable to the Universal
  Service Charge imposed under this subsection consistent with the registration and
  payment procedures that apply to the sales tax imposed on such services and also consistent
  with the administrative provisions of 32 V.S.A. chapter 151, including any enforcement or collection action available for taxes owed pursuant
  to that chapter. (2) If a minimal amount of prepaid wireless telecommunications service is sold with a
  prepaid wireless device for a single, nonitemized price, then the seller may elect
  not to apply the Universal Service Charge to such transaction. (3) As used in this subsection: (A) “Minimal amount” means an amount of service denominated as not more than 10 minutes
  or not more than $5.00. (B) “Prepaid wireless telecommunications service” means a telecommunications service as
  defined in subdivision 203(5) of this title that a consumer pays for in advance and that is sold in predetermined units or dollars
  that decline with use. (C) “Seller” means a person who sells prepaid wireless telecommunications service to a
  consumer. (D) “Marketplace facilitator” shall have the same meaning as in 32 V.S.A. § 9701(56). [Subdivision (e)(1) effective July 1, 2025; see also subdivision (e)(1) effective until
  July 1, 2025 set out above.] (e)(1) Notwithstanding any other provision of law to the contrary, a Universal Service Charge
  of 2.4 percent shall be imposed on all retail sales of prepaid wireless telecommunications
  service subject to the sales and use tax imposed under 32 V.S.A. chapter 233. The charges shall be collected by sellers or marketplace facilitators collecting
  sales tax pursuant to 32 V.S.A. § 9713 and remitted to the Department of Taxes in the manner provided under 32 V.S.A. chapter 233. Upon receipt of the charges, the Department of Taxes shall have 30 days to remit
  the funds to the fiscal agent selected under section 7503 of this chapter. The Commissioner
  of Taxes shall establish registration and payment procedures applicable to the Universal
  Service Charge imposed under this subsection consistent with the registration and
  payment procedures that apply to the sales tax imposed on such services and also consistent
  with the administrative provisions of 32 V.S.A. chapter 151, including any enforcement or collection action available for taxes owed pursuant
  to that chapter. (2) If a minimal amount of prepaid wireless telecommunications service is sold with a
  prepaid wireless device for a single, nonitemized price, then the seller may elect
  not to apply the Universal Service Charge to such transaction. (3) As used in this subsection: (A) “Minimal amount” means an amount of service denominated as not more than 10 minutes
  or not more than $5.00. (B) “Prepaid wireless telecommunications service” means a telecommunications service as
  defined in subdivision 203(5) of this title that a consumer pays for in advance and that is sold in predetermined units or dollars
  that decline with use. (C) “Seller” means a person who sells prepaid wireless telecommunications service to a
  consumer. (D) “Marketplace facilitator” shall have the same meaning as in 32 V.S.A. § 9701(56). (Added 1993, No. 197 (Adj. Sess.), § 5, eff. Oct. 1, 1994; amended 2001, No. 144 (Adj. Sess.), § 36; 2013, No. 191 (Adj. Sess.), § 29; 2019, No. 79, § 6, eff. Jan. 1, 2020; 2019, No. 79, § 7, eff. June 20, 2019; 2019, No. 131 (Adj. Sess.), § 290; 2019, No. 175 (Adj. Sess.), § 11, eff. July 1, 2021; 2023, No. 145 (Adj. Sess.), § 2, § 4, eff. July 1, 2025.)