ORS 403.200¹
Imposition of tax
  • rate

(1) There is imposed on each consumer or paying retail subscriber who has telecommunications service or interconnected Voice over Internet Protocol service, with access to the emergency communications system a tax equal to $1.00 per month or, for prepaid wireless telecommunications service, $1.00 per retail transaction. The tax must be applied on a telecommunications circuit designated for a particular consumer or subscriber. One consumer or subscriber line must be counted for each circuit that is capable of generating usage on the line side of the switched network regardless of the quantity or ownership of customer premises equipment connected to each circuit. For providers of central office based services, the tax must be applied to each line that has unrestricted connection to the switched network. Those central office based service lines that have restricted connection to the switched network must be charged based on software design in the central office that restricts the number of station calls to and from the network. For cellular, wireless or other common carriers, the tax applies to a subscriber on a per instrument basis and only if the subscriber’s place of primary use, as defined under 4 U.S.C. 124, is within this state.

(2) The consumer or subscriber is liable for the tax imposed by this section.

(3) The amounts of tax collected by the provider or seller are considered as payment by the consumer or subscriber for that amount of tax.

(4) The tax imposed under this section, as it applies to prepaid wireless telecommunications service, shall be collected by the seller from the consumer with respect to each retail transaction occurring in this state. The amount of the tax shall be separately stated on an invoice, receipt or other similar document that the seller provides to the consumer, or shall be otherwise disclosed to the consumer.

(5) For purposes of this section, a retail transaction:

(a) Occurs in this state if it is made in person by a consumer at a business location of the seller;

(b) If not made in person by a consumer at a business location of the seller, occurs in this state if the consumer’s shipping address, payment instrument billing address, or other address provided by the consumer for purposes of the transaction, is in this state; or

(c) If insufficient information exists to determine whether paragraph (a) or (b) of this subsection is accurate, occurs in this state if the consumer’s prepaid wireless telephone number is associated with an Oregon location.

(6) Any return made by the provider or seller collecting the tax must be accepted by the Department of Revenue as evidence of payments by the consumer or subscriber of amounts of tax so indicated upon the return. [Formerly 401.792; 2014 c.59 §§3,3a; 2015 c.247 §§18,19; 2019 c.653 §1]

Note: The amendments to 403.200 (Imposition of tax) by section 2, chapter 653, Oregon Laws 2019, apply to subscriber bills issued and retail transactions made on or after January 1, 2021. See section 4, chapter 5, Oregon Laws 2002 (first special session), as amended by section 1, chapter 4, Oregon Laws 2002 (third special session), section 1, chapter 629, Oregon Laws 2007, section 1, chapter 749, Oregon Laws 2013, section 9, chapter 59, Oregon Laws 2014, and section 5, chapter 653, Oregon Laws 2019. The text that applies to subscriber bills issued and retail transactions made on or after January 1, 2021, is set forth for the user’s convenience.

403.200 (Imposition of tax). (1) There is imposed on each consumer or paying retail subscriber who has telecommunications service or interconnected Voice over Internet Protocol service, with access to the emergency communications system a tax equal to $1.25 per month or, for prepaid wireless telecommunications service, $1.25 per retail transaction. The tax must be applied on a telecommunications circuit designated for a particular consumer or subscriber. One consumer or subscriber line must be counted for each circuit that is capable of generating usage on the line side of the switched network regardless of the quantity or ownership of customer premises equipment connected to each circuit. For providers of central office based services, the tax must be applied to each line that has unrestricted connection to the switched network. Those central office based service lines that have restricted connection to the switched network must be charged based on software design in the central office that restricts the number of station calls to and from the network. For cellular, wireless or other common carriers, the tax applies to a subscriber on a per instrument basis and only if the subscriber’s place of primary use, as defined under 4 U.S.C. 124, is within this state.

(2) The consumer or subscriber is liable for the tax imposed by this section.

(3) The amounts of tax collected by the provider or seller are considered as payment by the consumer or subscriber for that amount of tax.

(4) The tax imposed under this section, as it applies to prepaid wireless telecommunications service, shall be collected by the seller from the consumer with respect to each retail transaction occurring in this state. The amount of the tax shall be separately stated on an invoice, receipt or other similar document that the seller provides to the consumer, or shall be otherwise disclosed to the consumer.

(5) For purposes of this section, a retail transaction:

(a) Occurs in this state if it is made in person by a consumer at a business location of the seller;

(b) If not made in person by a consumer at a business location of the seller, occurs in this state if the consumer’s shipping address, payment instrument billing address, or other address provided by the consumer for purposes of the transaction, is in this state; or

(c) If insufficient information exists to determine whether paragraph (a) or (b) of this subsection is accurate, occurs in this state if the consumer’s prepaid wireless telephone number is associated with an Oregon location.

(6) Any return made by the provider or seller collecting the tax must be accepted by the Department of Revenue as evidence of payments by the consumer or subscriber of amounts of tax so indicated upon the return.

Note: Section 4, chapter 5, Oregon Laws 2002 (first special session), provides:

Sec. 4. (1) Taxes imposed under ORS 403.200 (Imposition of tax) apply to subscriber bills issued on or after January 1, 2002, and before January 1, 2030, and to retail transactions made on or after October 1, 2015, and before January 1, 2030.

(2) The amendments to ORS 403.200 (Imposition of tax) by section 1 of this 2019 Act apply to subscriber bills issued and retail transactions made on or after January 1, 2020, and before January 1, 2021.

(3) The amendments to ORS 403.200 (Imposition of tax) by section 2 of this 2019 Act apply to subscriber bills issued and retail transactions made on or after January 1, 2021. [2002 s.s.1 c.5 §4; 2002 s.s.3 c.4 §1; 2007 c.629 §1; 2013 c.749 §1; 2014 c.59 §9; 2019 c.653 §5]

(formerly 401.710 to 401.790)

Atty. Gen. Opinions

Alloca­tion of tax funds in connec­tion with nontelephonic items such as radio, microwave and computer components, (1982) Vol. 42, p 239

1 Legislative Counsel Committee, CHAPTER 403—Emergency Telecommunications System, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors403.­html (2019) (last ac­cessed May 16, 2020).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 403, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano403.­html (2019) (last ac­cessed May 16, 2020).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.
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