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Title:
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An Act concerning the sales and use tax on telecommunications service for the purpose of increasing the levy and imposition of the sales and use tax on telecommunications service in Prince George’s County; and generally relating to the sales and use tax on telecommunications service
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Title
An Act concerning the sales and use tax on telecommunications service for the purpose of increasing the levy and imposition of the sales and use tax on telecommunications service in Prince George’s County; and generally relating to the sales and use tax on telecommunications service
Background
In 2002, the State enacted legislation mandating that the County Council for Prince George’s County impose, by ordinance, and collect a sales and use tax on telecommunications service in Prince George’s County at a rate not less than five percent (5%). In 2002, the County Council set a rate of eight percent (8%) on the sales and use tax on telecommunications service in Prince George’s County. This legislation increases the tax rate from eight percent (8%) to eleven percent (11%) on the sales and use tax on telecommunications service in Prince George’s County.
Telecommunication service vendors are charged with collecting the tax on behalf of the County, providing itemized statements to their customers, and remitting payment to the County. The County’s Office of Finance is responsible for administering the sales and use tax on telecommunications service and auditing vendor records to assure compliance.
The proceeds are subject only to administrative fees and may only be used for County school system operating expenditures. Further, these proceeds may not be used to supplant any State aid for education provided to the County or County funds provided to the County school system.