67-6-221 - Tax imposed on interstate or international telecommunications services sold to businesses Revenue. [Effective until July 1, 2011. ] - Tennessee Statutes

67-6-221. Tax imposed on interstate or international telecommunications services sold to businesses Revenue. [Effective until July 1, 2011. ]

(a)  Notwithstanding any other provision of the law to the contrary, interstate or international telecommunication services sold to businesses shall be subject to a tax imposed at the rate of seven and one-half percent (7.5%).

(b)  The revenue from a rate equal to one-half percent (0.5%) of tax shall be deposited in the general fund and earmarked for education purposes for kindergarten through grade twelve (K-12) in accordance with § 67-6-103(c)(2). The revenue from a rate equal to one-half percent (0.5%) of tax shall be distributed to incorporated municipalities in the proportion each population bears to the aggregate population of the state and to unincorporated areas of counties in the proportion each population bears to the aggregate population of the state, according to the most recent federal census and other census authorized by law. Counties and incorporated municipalities shall use such funds in the same manner and for the same purposes as funds distributed pursuant to § 67-6-712. The revenue from a rate equal to four percent (4%) of tax shall be deposited in the telecommunications ad valorem tax reduction fund created by § 67-6-222. All other revenue generated from the tax imposed by subsection (a) shall be deposited in the state general fund and allocated pursuant to § 67-6-103(a).

(c)  [Deleted by 2006 amendment.]

(d)  This section is repealed July 1, 2011.

[Acts 1989, ch. 312, § 10; 1992, ch. 529, § 5; 1993, ch. 190, §§ 1, 2; 1999, ch. 413, § 4; 2001, ch. 195, § 1; 2003, ch. 357, § 33; 2004, ch. 592, § 10; 2004, ch. 782, § 9; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2005, ch. 500, § 9; 2006, ch. 989, § 14; 2009, ch. 530, §§ 35, 42.]