Appendices — GTE Sprint Communications Corp. v. Sweet (No. 87-1101)

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APPENDIX A

No. 64355

Inu The

Supreme Court of Illinois

JEROME F. GOLDBERG and ROBERT

McTIGUE, individually and on behalf

of all others similarly situated,

Plaintiffe-Appellees and

Cross-Appellants,

v

J. THOMAS JOHNSON, Director of

Revenue for the Department of Rev-

enue of the State of Illinois,

Defendant-Appellant,

and

GTE SPRINT COMMUNICATIONS

CORPORATION, et al.,

Defendants.

GTE SPRINT COMMUNICATIONS

CORPORATION,

Counter-P laintiff-A ppellee,

v.

J. THOMAS JOHNSON, Director of

Revenue for the Department of Rev-

enue of the State of Illinois, and

JAMES H. DONNEWALD, Treasurer

of the State of Dlinois,

Defendants -A ppellants.

\

Direct Appeal from the

| Circuit Court of Cook

County, Chancery

Division

» No. 85 CH 8081

The Honorable

Richard L. Curry,

Judge Presiding

J

NOTICE OF APPEAL TO THE SUPREME COURT

OF THE UNITED STATES

Notice is hereby given that GTE Sprint Communica-

tions Corporation, the Counter-Plaintiff-Appellee above-

named, hereby appeals to the Supreme Court of the United

States the judgment of the Supreme Court of Illinois

entered herein on June 24, 1987.

2a

This appeal is taken pursuant to 28 U.S.C. § 1257(2).

Respectfully submitted,

By: /s/ Laura D1 GIANTONIO

Laura Di Giantonio

CHADWELL & Kayser, Ltn.

8500 Sears Tower

Chicago, Illinois 60606

312-876-2100

Of Counsel

RICHARD N. WILEY

GTE Sprint COMMUNICATIONS CORPORATION

1350 Old Bayshore Highway

Burlingame, CA 94010

415-375-5026

3a

CERTIFICATE OF SERVICE

I, Laura Di Giantonio, certify that on December 7,

1987, I caused the Notice of Appeal to the Supreme Court

of the United States to be served on all those persons on

the attached Service List by causing one true and correct

copy to be placed, first class postage prepaid, in envelopes,

correctly addressed, and sent by United States Mail.

/s/ LAURA Dt GiANTONIO

Laura Di Giantonio

4a

SERVICE LIST

William G. Clark, Jr. Western Union

& Associates, Ltd. Legal Department

29 South LaSalle Street Upper Saddle River,

Suite 830 NJ 07458

Chicago, Illinois 60603

Daniel M. Pierce

Altheimer & Gray

Suite 2600

333 West Wacker Drive

Chicago, Ilinois 60606

David S. Acker

Winston & Strawn

Suite 5000

One First National Plaza

Chicago, Illinois 60604

Bruce D. Becker, Esq.

Legal Department

Allnet Communication

Services

30300 Telegraph Road

Birmingham, MI 48010

ITT

Legal Department

Suite 2203

200 West Monroe Street

Chicago, Illinois 60606

Max Long Distance

Phone Service

Legal Department

Suite 201

1660 L Street, N.W.

Washington, D.C. 20036

Michael W. Ward

O’Keefe, Ashsenden, Lyons

& Ward

One First National Plaza

Suite 5100

Chicago, Illinois $0603

Douglas R. Newkirk

Sachnoff, Weaver &

Rubenstein, Ltd.

Suite 2900

30 South Wacker Drive

Chicago, Dlinois 60606

David W. Carpenter

Lee J. Schwartz

Kathryn E. Korn

Sidley & Austin

One First National Plaza

Chicago, Ilinois 60603

Republic Telecom

Legal Department

8300 Norman Center Drive

Bloomington, MN 55437

U.S. Telecom

Legal Department

Suite 500

200 North Michigan Avenue

Chicago, Illinois 60601

5a

SERVICE LIST (continued)

George W. Foster

c/o Neil F. Hartigan

Attorney General

100 West Randolph

Suite 13-103

Chicago, Illinois 60601

TMC Long Distance

1901 S. Meyers Road

Suite 130

Lombard, IDlinois

60148-5071

TDX

Legal Department

Suite 750

150 North Wacker Drive

Chicago, Illinois 60606

John Lenahan

Dllinois Bell Telephone

Company

Room 27A

225 West Randolph Street

Chicago, Illinois 60603

Roger D. Sweet

Director of Revenue for

The Department of

Revenue of The State

of Illinois

100 West Randolph Street

State of Illinois Building

Suite 7-100

Chicago, Illinois 60601

Jerome Cosentino

Treasurer of the State

of Illinois

100 West Randolph Street

State of Illinois Building

Suite 15-600

Chicago, Illinois 60601

Philip D. Levey

2722 N. Racine

Chicago, Illinois 60614

Frederic S. Lane

Ralph J. Schumann

Sonnenschein, Carlin,

Nath & Rosenthal

8000 Sears Tower

Chicago, Illinois 60606

John G. Jacobs

Plotkin & Jacobs, Ltd.

Suite 1300

116 South Michigan Ave.

Chicago, Illinois 60603

MCI

Legal Department

Dep. 5010/500

205 North Michigan Ave.

Chicago, Ilinois 60601

Terry F. Moritz

Special Assistant

Attorney General

Goldberg, Kohn, Bell, Black,

Rosenbloom & Moritz, Ltd.

55 East Monroe Street

Suite 3900

Chicago, Illinois 60603

6a

APPENDIX B

ILLINOIS SUPREME COURT

JULEANN HORNYAK, CLERK

SUPREME COURT BUILDING

SPRINGFIELD, ILL. 62706

(217) 782-2035

October 5, 1987

Chadwell & Kayser

Attorneys at Law

233 South Wacker Drive, 85th Floor

Chicago, IL 60606

No. 64355 - Jerome F. Goldberg, et al., etc., appellees,

v. J. Thomas Johnson, Director of Revenue,

etc., et al., appellants. Appeal, Circuit Court

(Cook).

The Supreme Court today DENIED the petition for rehear-

ing in the above entitled cause.

The mandate of this Court will issue to the appropriate

Appellate Court and/or Circuit Court or other agency on

January 21, 1988.

7a

APPENDIX C

STATE OF ILLINOIS )

COUNTY OF COOK

=

AFFIDAVIT OF RICHARD N. WILEY

Richard N. Wiley, being over the age of 21 and being

competent to testify to the matters herein, deposes and

states as follows:

1. I formerly served as Tax Manager and then as

Senior Tax Attorney for GTE Sprint Communications

Corporation (“GTE Sprint”) from 1980-1985.

2. In 1986, GTE Sprint combined with U.S. Telecom,

Inc. to form a partnership known as U.S. Sprint Commu-

nications Company (“U.S. Sprint”). This partnership was

formed to provide long distance telecommunications ser-

vices in the United States and elsewhere.

3. I am now a General Attorney employed by U.S.

Sprint.

4. In my various positions with GTE Sprint and then

with U.S. Sprint, I have of necessity become familiar with

the operations of those companies.

5. GTE Sprint was, prior to July 1, 1986, a retailer

of intrastate and interstate telecommunications services.

As U.S. Sprint it so remains. (Hereinafter GTE Sprint

and U.S. Sprint will be referred to as “GTE Sprint,” in the

present tense.)

6. GTE Sprint’s customers use its services to convey

and receive voice and other messages. A large part of

GTE Sprint’s business centers on providing interstate voice

transmission by telephone, in all fifty states of the United

States and to several foreign countries. In order to provide

voice transmission services, GTE Sprint has established,

over the years, its own interstate transmission network

comprised of microwave radio, fiber optic, satellite and

8a

cable transmission facilities which are spread over numer-

ous states. GTE Sprint has constructed this interstate net-

work of transmission facilities at great expense.

7. In transmitting voice messages on an interstate

basis, GTE Sprint utilizes its own facilities where possible.

8. However, GTE Sprint must utilize the services of

other telecommunications carriers in-some areas its lines

do not reach. In such cases, GTE Sprint purchases services

from these other carriers.

9. GTE Sprint is also forced to use other carriers’

services at the local level since local operating companies

control the facilities which are used to originate and ter-

minate calls. For example, GTE Sprint typically pays the

local exchange telephone company (usually a Bell Operat-

ing Company) at the originating end of a transmission for

picking up the communication from its origin (generally

the caller’s telephone device) and delivering it to the GTE

Sprint network. Likewise, at the terminating end of the

communication, GTE Sprint typically pays another local

exchange telephone company for delivering the communi-

cation from the GTE Sprint network to the point of termi-

nation.

10. The local exchange services for this purpose are

termed “access services” and the charges for using the local

exchange services for picking up and dropping off the mes-

sage at the local level are termed “access charges.”

11. Other costs are incurred by GTE Sprint in the

establishment and maintenance of its own network over

which its customers’ calls are transmitted where possi-

ble. GTE Sprint thus incurs costs in sending its interstate

transmissions, both in the cost of building and maintain-

ing its own lines, and in purchasing services from other

carriers.

12. GTE Sprint incurs transmission costs over the

entire pathway of each communication. The transmis-

Ri eeeeennenmemenennmnemeeatl

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sion and other costs incurred are typically recovered from

GTE Sprint’s customers in the tariffed prices they pay

for telecommunications services. The basic charge for an

interstate toll call varies according to the distance between

the place the call originates and the place it terminates,

increasing in price as the distance between these points

increases. The charge for an interstate private line call

varies solely according to the length of the line utilized in

the transmission.

13. GTE Sprint’s intrastate telecommunications ser-

vices are provided pursuant to tariffs authorized by

the Illinois Commerce Commission, while its interstate

telecommunications services are common carrier services

provided subject to Federal Communications Commission

regulation and pursuant to 47 U.S.C. § 201 et seq.

e14. GTE Sprint has the administrative capability to

bill taxes to its customers on telecommunications services

which originate in any state, or terminate in any state, or

are billed in any state, or any combination of these criteria

for any number of states. Specifically, GTE Sprint has the

administrative capability to bill more than one state’s tax

to a single customer for a single communication. For exam-

ple, GTE Sprint can bill an Illinois customer for an inter-

state telecommunication originating in Illinois and termi-

nating in New York, and could include, in that charge,

a tax assessed by Illinois, the originating state, and New

York, the terminating state.

15. The first payment of the excise tax imposed by

the Illinois Telecommunications Excise Tax Act was due

the State of Illinois on September 15, 1985. Because of

certain business and technical exigencies, GTE Sprint was

not able, at that time, to implement a system to pass the

tax through to its customers on their bills. Therefore,

GTE Sprint undertook to remit to the State the taxes due

under the Act, until such time as it could implement such

a system. GTE Sprint made a number of the tax payments

10a

itself thereafter, until it was finally able to implement a

system to pass the tax on to its customers, around October

or November, 1985.

16. From September 15, 1985 to the present, GTE

Sprint has paid to the State of Illinois a total of

$ 2,146,904.28 in taxes due the State by its cus-

tomers for interstate telecommunications services, at least

$ 391,568.00 of which has been paid by Sprint itself, and

not its customers, due to Sprint’s temporary administrative

inability to pass along the tax.

17. These payments GTE Sprint has made under

protest, pursuant to Illinois statutory provision, in order

to preserve its right to a refund of those payments should

the Tax Act ultimately be declared unconstitutional in this

lawsuit.

18. GTE Sprint has met all the requirements for

requesting a refund under the Money Disposition Act, as

it filed suit challenging the tax within the specified time

period, obtained the required injunction, and has paid over

the tax to the State, under protest, and accompanied by the

required protest form.

/s/ RICHARD N. WILEY

Richard N. Wiley

Subscribed and sworn to

before me this 25th day

of July, 1986.

/s/ COLLEEN C. JARDINE

Notary Public

[Seal]

lla

APPENDIX D

FLORIDA SALES TAX

212.05. Sales, storage, use tax

It is hereby declared to be the legislative intent that

every person is exercising a taxable privilege who engages

in the business of selling tangible personal property at

retail in this state, or who rents or furnishes any of the

things or services (axable under this chapter, or who stores

for use or consumption in this state any item or article

of tangible personal property as defined herein and who

leases or rents such property within the state.

(1) For the exercise of such privilege, a tax is levied on

each taxable transaction or incident, which tax is due and

payable as follows:

- * * -

(e)1. At the rate of 5 percent on charges for all tele-

graph messages and long distance telephone calls begin-

ning and terminating in this state; on charges for telecom-

munication service as defined in s. 203.012 and for those

services described in s. 203.012(2)(a); on recurring charges

to regular subscribers for wired television service; on all

charges for the installation of telecommunication, wired

television, and telegraphic equipment; and on all charges

for electrical power or energy. For purposes of this sub-

paragraph, the term “telecommunication service” does not

include local service provided through a pay telephone.

The provisions of s. 212.17(3), regarding credit for tax paid

on charges subsequently found to be worthless, shall be

equally applicable to any tax paid under the provisions

of this section on charges for telecommunication or tele-

graph services or electric power subsequently found to be

uncollectible. The word “charges” in this paragraph does

not include any excise or similar tax levied by the Federal

Government, any political subdivision of the state, or any

municipality upon the purchase or sale of telecommunice-

12a

tion, wired television, or telegraph service or electric pow-

er, which tax is collected by the seller from the purchaser.

2. Telegraph messages and telecommunication ser-

vices which originate or terminate in this state, other than

interstate private communication services, and are billed

to a customer, telephone number, or device located within

this state are taxable under this paragraph. Interstate pri-

vate communication services are taxable under this para-

graph as follows:

a. One hundred percent of the charge imposed at each

channel termination point within this state;

b. One hundred percent of the charge imposed for the

total channel mileage between each channel termination

point within this state; and

c. The portion of the interstate interoffice channel

mileage charge as determined by multiplying said charge

times a fraction, the numerator of which is the air miles

between the last channel termination point in this state

and the vertical and horizontal coordinates, 7856 and 1756,

respectively, and the denominator of which is the air miles

between the last channel termination point in this state

and the first channel termination point outside this state.

The denominator of this fraction shall be adjusted, if neces-

sary, by adding the numerator of said fraction to similarly

determined air miles in the state in which the other chan-

nel termination point is located, so that the summation

of the apportionment factor for this state and the appor-

tionment factor for the other state is not greater than one,

to ensure that no more than 100 percent of the interstate

interoffice channel mileage charge can be taxed by this

state and another state.

3. The tax imposed pursuant to this paragraph shal]

not exceed $50,000 per calendar year on charges to any

person for interstate telecommunications services defined

in s. 203.012(4) and (7)(b), if the majority of such services

used by such person are for communications originating

13 a

outside of this state and terminating in this state. This

exemption shall only be granted to holders of a direct pay

permit issued pursuant to this subparagraph. No refunds

shall be given for taxes paid prior to receiving a direct

pay permit. Upon application, the department may issue a4

direct pay permit to the purchaser of telecommunications

services authorizing such purchaser to pay tax on such

services directly to the department. Any vendor furnishing

telecommunications services to the holder of a valid direct

pay permit shall be relieved of the obligation to collect and

remit the tax on such service. Tax payments and returns

pursuant to a direct pay permit shall be monthly. For

purposes of this subparagraph, the term “person” shall be

limited to a single legal entity and shall not be construed

as meaning a group or combination of affiliated entities or

entities controlled by one person or group of persons. For

purposes of this subparagraph, for calendar year 1986, the

term “calendar year” means the last 6 months of 1986.

l4a

APPENDIX E

ORDINANCE NO. 630

BE IT ORDAINED BY THE CITY COUNCIL OF THE

CITY OF WHEAT RIDGE, COLORADO THAT:

Section 1. Section 21-1 — Definitions of the Code of

Laws of the City of Wheat Ridge is amended by the addi-

tion of the following definitions:

“LOCAL EXCHANGE COMPANY” means any person

which provides public telephone or telecommunication

exchange access lines, mobile telecommunications or chan-

nels necessary to effect the transfer of two-way voice or

data grade information between the final user and the local

telecommunications network.

“TELECOMMUNICATIONS SERVICE” means the trans-

port of signs, signals, writings, images, sounds, messages,

data, or other information of any nature by wire, radio,

light waves, electromagnetic, digital, or electronic means.

“ACCESS SERVICES” means any charge by local tele-

phone exchange companies to providers of telecommuni-

cations services for use in providing their telecommunica-

tions services.

Section 2. Section 21-4 - Property and Services Sub-

ject to Tax of the Code of Laws of the City of Wheat Ridge

is amended by the repeal and reenactment of the following

provisions thereof:

There is hereby levied and there shall be collected

and paid a tax in the amount stated in Section 21-7 as

follows: on all sales and services taxable by the State of

Colorado under the sales tax provisions of the Colorado

Revised Statutes 1973, 39-26-104, as amended, including,

not limited to the following:

(b) UPON TELECOMMUNICATIONS' SERVICES,

EXCEPT ACCESS SERVICES AS DESIGNATED IN

SECTION 21-5(8), WHETHER FURNISHED BY PUB-

154

LIC OR PRIVATE CORPORATIONS OR ENTERPRISES

FOR ALL INTERSTATE AND INTRASTATE TELECOM-

MUNICATIONS SERVICE ORIGINATING FROM OR

RECEIVED ON TELECOMMUNICATIONS EQUIP-

MENT IN THIS CITY IF THE CHARGE FOR THE SER-

VICE IS BILLED TO A PERSON IN THIS CITY OR

BILLED TO AN AFFILIATE OR DIVISION CF SUCH

PERSON IN ANY STATE/CITY ON BEHALF OF A PER-

SON IN THIS CITY.

Section 3. Section 21-5. Same - Exempt of the Code

of Laws of the City of Wheat Ridge is hereby amended by

the addition of the following subpart 21-5(i) (8):

(8) “ACCESS SERVICES” BY LOCAL TELEPHONE

EXCHANGE COMPANIES TO PROVIDERS OF

TELECOMMUNICATIONS SERVICE FOR USE IN PRO-

VIDING SUCH SERVICE SHALL BE DEEMED TO BE

WHOLESALE SALES AND SHALL BE EXEMPT FROM

TAXATION UNDER THIS SECTION.

SIGNED by the Mayor on this 12th day of August,

1985.

/s/ FRANK STITES

Frank Stites, Mayor

ATTEST:

/s/ WANDA SANG

Wanda Sang, City Clerk

16a

APPENDIX F

CITY OF GREELEY, COLORADO

ORDINANCE NO. 45, 1985

NOW, THEREFORE, BE IT ORDAINED BY THE CITY

COUNCIL OF THE CITY OF GREELEY, COLORADO:

Section 1. Section 4.04.060 of the Code of Ordinances,

a copy of which is attached hereto, marked “Exhibit A”

and incorporated herein by reference, is amended to read

as follows:

4.04.060 Sales tax—Levied. There is levied and

there shall be collected and paid a tax in the amount

stated in Section 4.04.145 as follows:

C. Upon telecommunications services, except

access services as designated in Section 4.04.015 (S),

whether furnished by public or private corporations or

enterprises for all interstate and intrastate telecom-

munications services originating from or received

on telecommunications equipment in this city if the

charge for the service is billed to a person in this city

or billed to an affiliate or division of such person in

any state or any other city in this state on behalf of

a person in this state;

R. “Telecommunications Service” means the

transport of signs, signals, writing, images, sounds,

messages, data, or other information of any nature by

wire, radio, light waves, electromagnetic, digital, or

electronic means.

S. “Access Services” means any charge by local

telephone exchange companies to providers of telecom-

munications services for use in providing their

telecommunications services.

_. Section 2. This Ordinance shall become effective on

July 1, 1985.

PASSED AND ADOPTED, SIGNED AND APPROVED

THIS 7th DAY OF May, 1985.

ATTEST: THE CITY OF GREELEY, COLORADO

/s/ GAYLE Voss By: /s/ Mike LEHAN

City Clerk Mayor

17a

APPENDIX G

WASHINGTON BUSINESS AND OCCUPATION TAX

82.04.050. “Sale at retail”, “retail sale”

(1) “Sale at retail” or “retail sale” means every sale

of tangible personal property (including articles produced

fabricated, or imprinted) to all persons irrespective of the

nature of their business cad including, among others, with-

out limiting the scope hereof, persons who install, repair,

clean, alter, improve, construct, or decorate real or per-

sonal property of or for consumers other than a sale to a

person who (a) purchases for the purpose of resale as tan-

gible personal property in the regular course of business

without intervening use by such person, or (b) installs,

repairs, cleans, alters, imprints, improves, constructs, or

decorates real or personal property of or for consumers, if

such tangible personal property becomes an ingredient or

component of such real or personal property without inter-

vening use by such person, or (c) purchases for the purpose

of consuming the property purchased in producing for sale

a new article of tangible personal property or substance,

of which such property becomes an ingredient or compo-

nent or is a chemical used in processing, when the primary

purpose of such chemical is to create a chemical reaction

directly through contact with an ingredient of a new arti-

cle being produced for sale, or (d) purchases for the purpose

of consuming the property purchased in producing ferrosil-

icon which is subsequently used in producing magnesium

for sale, if the primary purpose of such property is to cre-

ate a chemical reaction directly through contact with an

ingredient of ferrosilicon, or (e) purchases for the purpose

of providing the property to consumers as part of competi-

tive telephone service, as defined in RCW 82.04.065. There

term shall include every sale of tangible personal property

which is used or consumed or to be used or consumed in the

performance of any activity classified as a “sale at retail”

or “retail sale” even though such property is resold or uti-

lized as provided in (a), (b), (c), (d), or (e) above following

18a

such use. The term also means every sale of tangible per-

sonal property to persons engaged in any business which is

taxable under RCW 82.04.280, subsections (2) and (7) and

RCW 82.04.290.

. . * -

(5) The term shall also include the providing of tele-

phone service, as defined in RCW 82.04,065, to consumers.

- . * .

82.04.065. “Competitive telephone service”, “network

telephone service”, “telephone service”,

“telephone business”

(1) “Competitive telephone service” means the provid-

ing by any person of telecommunications equipment or

apparatus or service related to that equipment or appara-

tus such as repair or maintenance service, if the equipment

or apparatus is of a type which can be provided by persons

that are not subject to regulation as telephone companies

under Title 80 RCW and for which a separate charge is

made.

_ (2) “Network telephone service” means the providing

by any person of access to a local telephone network, local

telephone network switching service, toll service, or coin

telephone services, or the providing of telephonic, video,

data, or similar communication or transmission for hire,

via a local telephone network, toll line or channel, cable,

microwave, or similar communication or transmission sys-

tem. “Network telephone service” includes interstate ser-

vice, including toll service, originating from or received on

telecommunications equipment or apparatus in this state

if the charge for the service is billed to a person in this

state. “Network telephone service” does not include the

providing of competitive telephone service, the providing

of cable television service, nor the providing of broadcast

services by radio or television stations.

(3) “Telephone service” means competitive telephone

19a

service or network telephone service, or both, as defined in

subsections (1) and (2) of this section.

(4) “Telephone business” means the business of provid-

ing network telephone service, as defined in subsection (2)

of this section. It includes cooperative or farmer line tele-

phone companies or associations operating an exchange.

*. * Ad ad

82.04.250 Tax on retailers

Upon every person except persons taxable under RCW

82.04.260(8) engaging within this state in the business of

making sales at retail, as to such persons, the amount of

tax with respect to such business shall be equal to the gross

proceeds of sales of the business, multiplied by the rate of

forty-four one-hundredths of one percent.

20a

APPENDIX H

NEW MEXICO GROSS RECEIPTS TAX

7-9-3. Definitions. (Effective until July 1, 1988.)

As used in the Gross Receipts and Compensating Tax

Act [this article):

* 7 . *

F. “gross receipts” means the total amount of money

or the value of other consideration received from selling

property in New Mexico, from leasing property employed

in New Mexico or from performing services in New Mexico

and includes any receipts from sales of tangible personal

property handled on consignment but excludes cash dis-

counts allowed and taken, New Mexico gross receipts tax

payable on transactions for the reporting period and taxes

imposed pursuant to the provisions of the County Sales Tax

Act, the County Fire Protection Excise Tax Act, the County

Gross Receipts Tax Act, the Municipal Gross Receipts Tax

Act or the Supplemental Municipal Gross Receipts Tax Act

which are payable on transactions for the reporting period

and any type of time-price differential.

ad * ad -

“Gross receipts” also includes amounts paid by mem-

bers of any cooperative association or similar organization

for sales or leases of personal property or performance of

services by such organization and amounts received from

transmitting messages or conversations by persons provid-

ing telephone or telegraph services, including interstate

and international messages or conversations that either

originate or terminate in New Mexico and are billed to a

New Mexico telephone number or account;

7-9-4. Imposition and rate of tax; denomination as

“gross receipts tax”.

A. For the privilege of engaging in business, an excise

21a

tax equal to four and three-fourths percent of gross receipts

is imposed on any person engaging in business in New

Mexico.

B. The tax imposed by this section shall be referrred

to as the “gross receipts tax”.

* ~ * ~

7-9-55. Deduction; gross receipts tax; transaction in

interstate commerce. (Effective until July 1,

1988.)

Receipts from transactions in interstate commerce

may be deducted from gross receipts to the extent that

the imposition of the gross receipts tax would be unlawful

under the United States constitution.

Receipts from transmitting messages or conversations

by radio other than from one point in this state to another

point in this state and receipts from the sale of radio or

television broadcast time when the advertising messaze is

supplied by or on behalf of a national or regional seller

or advertiser not having its principal place of business in

or being incorporated under the laws of this state, may be

deducted from gross receipts. Commissions of advertising

agencies from performing services in this state may not be

deducted from gross receipts under this section.

7-9-55. Deduction; gross receipts tax; transaction in

interstate commerce. (Effective July 1, 1988.)

Receipts from transactions in interstate commerce

may be deducted from gross receipts to the extent that

the imposition of the gross receipts tax would be unlawful

under the United States constitution.

Receipts from transmitting messages or conversations

by telegraph, telephone or radio other than from one point

in this state to another point in this state and receipts

from the sale of radio or television broadcast time when

the advertising message is supplied by or on behalf of a

EEE

22a

national or regional seller or advertiser not having its prin-

cipal place of business in or being incorporated under the

laws of this state, may be deducted from gross receipts.

Commissions of advertising agencies from performing ser-

vices in this state may not be deducted from gross receipts

under this section.

7-9-56. Deduction; gross receipts tax; intrastate

transportation and services in interstate

commerce. (Effective until July 1, 1988.)

- -_ * -

C. Receipts from providing telephone or telegraph ser-

vices in this state which will be used by other persons in

providing telephone or telegraph services to the final user

and thirty-five percent of the receipts of persons providing

interstate and foreign telephone or telegraph services from

transmitting interstate messages or conversations may be

deducted from gross receipts.