Bill Text: DE HJR3 | 2011-2012 | 146th General Assembly | Draft

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Bill Title: Establishing A Communications Tax Review Group To Study And Make Recommendations For Improving Delaware's Tax Laws Applicable To Communications Providers.

Spectrum: Moderate Partisan Bill (Democrat 16-4)

Status: (Passed) 2011-07-05 - Signed by Governor [HJR3 Detail]

Download: Delaware-2011-HJR3-Draft.html

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SPONSOR:	Rep. Scott & Rep. Viola & Sen. McDowell & Sen. DeLuca
	Reps. Bennett, Carson, Hudson, Jaques, Q. Johnson, Lavelle, Longhurst, Mitchell, Schooley, Schwartzkopf, B. Short; Sens. Bushweller, Ennis, McBride, Simpson, Sorenson

HOUSE OF REPRESENTATIVES

146th GENERAL ASSEMBLY

HOUSE JOINT RESOLUTION NO. 3

ESTABLISHING A COMMUNICATIONS TAX REVIEW GROUP TO STUDY AND MAKE RECOMMENDATIONS FOR IMPROVING DELAWARE'S TAX LAWS APPLICABLE TO COMMUNICATIONS PROVIDERS.

WHEREAS, competition and changes in technology have expanded types of communications services available to businesses and consumers in Delaware;

WHEREAS, most state and local taxes and fees on communications services were adopted before changes in technology and the emergence of competition;

WHEREAS, the communications competitors of tomorrow will not be the facilities-based competitors of today;

WHEREAS, antiquated tax and fee structures may no longer be suitable for the current and future communications marketplace;

WHEREAS, tax policy should encourage investment in communications networks because communications services are vital to the state's economic growth and competitiveness;

WHEREAS, the burden of collecting and remitting taxes and fees on communications services is borne by providers of such services, and service providers should participate in discussions about restructuring communications taxes and fees;

WHEREAS, the State, municipalities, and counties all receive revenues from communications taxes and fees, and should participate in any discussions about restructuring communications taxes and fees;

WHEREAS, more information about the revenue impact of tax restructuring on consumers and governments receiving revenues from current taxes and fees is necessary so that the General Assembly may consider tax and fee restructuring options during the 2012 session; and

WHEREAS, a Review Group of qualified persons representing the interests most affected by tax and fee restructuring should study the issues and submit a report and any proposed legislation to the General Assembly; and

WHEREAS, it is the intent of the General Assembly that all parties with an interest in communications taxes and fees in Delaware work together to develop recommendations on restructuring such taxes and fees.

NOW, THEREFORE:

BE IT RESOLVED by the House of Representatives of the 146th General Assembly of the State of Delaware, the Senate concurring therein, with the approval of the Governor, that a Communications Tax Review Group be created for the purpose of studying and making recommendations for improving Delaware's tax laws applicable to communications providers.

BE IT FURTHER RESOLVED that the Review Group shall report to the House of Representatives by March 14, 2012, or earlier if appropriate, on the following subjects:

• Wire and Transmitter Tax (Chapter 41, Title 30 of the Delaware Code);

• Special Betterments Property Tax (Chapter 81, Title 9 of the Delaware Code);

• Excise Tax (Chapter 55, Title 30 of the Delaware Code); and

• Cable television franchise fees.

1. The report shall examine the feasibility and fiscal implications on affected governmental entities or political subdivisions of a modernized, competitively neutral tax system that encourages investment in broadband networks and eliminates the disparate tax treatments of like communications providers.

2. The report shall also recommend methods to centralize the assessment, collection and administration of county and municipal property taxes as they apply to real property that is unique to the communications industry and study the need for regularly scheduled appraisals of such real property and alternative valuation methods.

BE IT FURTHER RESOLVED that the Chair of the Review Group shall be the Chair of the House Telecommunications, Internet and Technology Committee and, in addition to its chair, the Review Group shall have the following members:

1. One member of the House Revenue and Finance Committee, appointed by the Speaker of the House of Representatives:

2. One member of the Senate, appointed by the President Pro Tempore of the Senate;

3. The Secretary of Finance or his designee;

4. The Director of the Delaware Economic Development Office or his designee;

5. One representative from each of the three Counties in the State, appointed by the chief executive officer of each county;

6. Two representatives from local governments, appointed by the Chair; and

7. One representative from each of the following communications carriers, appointed by the Chair:

Local exchange;

Cable television; and

Wireless.

BE IT FURTHER REVOLVED that the Chair of the Review Group be responsible for guiding the administration of the Review Group by, at a minimum:

1. setting a date, time and place for the initial organizational meeting;

2. supervising the preparation and distribution of meeting notices, agendas, minutes, correspondence, and reports of the Review Group; and

3. ensuring that the final report of the Review Group is submitted to the Speaker of the House of Representatives and President Pro Tempore of the Senate with a copy to the Governor, the Director of the Division of Research of Legislative Council and the Delaware Public Archives.

BE IT FURTHER RESOLVED that staff support for the Review Group be provided by the Controller General's Office and the Office of the Secretary of Finance, under the direction of the Chair of the Review Group.

BE IT FURTHER RESOLVED, that in order to evaluate the revenue impacts of such proposal, the Department of Finance is directed to collect information from municipalities, counties, and any other relevant agencies including itself, to determine the amount of revenue collected and remitted to the respective governments from all current taxes and fees on communications services for the fiscal year beginning July 1, 2010 and ending June 30, 2011. The Department of Finance also shall collect information from communications service providers about the amount of revenue paid or collected and remitted to governments from all communications taxes and fees for the fiscal year beginning July 1, 2010 and ending June 30, 2011. Subject to the restrictions provided by §368 of Title 30 of the Delaware Code, the Department of Finance shall provide the information collected under this section to the Review Group as soon as possible, but no later than November 15, 2011 or the receipt of the information, whichever is earlier.

BE IT FURTHER RESOLVED that the information collected from communications service providers shall not be disclosed to the public unless it is aggregated so that market share and other sensitive market information for individual companies cannot be determined. Information not so aggregated or other individual company information is not subject to disclosure.

BE IT FURTHER RESOLVED that the governmental entities, agencies and communications providers shall cooperate reasonably with the Department of Finance's information gathering under this resolution. The Department shall have the authority to subpoena any entity, agency or communications provider that fails or refuses to cooperate reasonably with the Department's information gathering.

SYNOPSIS

This House Joint Resolution establishes a Communications Tax Review Group to study and make recommendations for improving Delaware's taxes and fees applicable to communications providers.