CODE OF VIRGINIA

SOURCING RULES FOR COMMUNICATION SERVICES (§ 58.1-649)

A. Except for the defined communication services in subsection C, the sale of
communications service sold on a call-by-call basis shall be sourced to the
Commonwealth when the call (i) originates and terminates in the Commonwealth or
(ii) either originates or terminates in the Commonwealth and the service address
is also located in the Commonwealth.

B. Except for the defined communication services in subsection C, a sale of
communication services sold on a basis other than a call-by-call basis, shall be
sourced to the customer’s place of primary use.

C. The sale of the following communication services shall be sourced to the
Commonwealth as follows:

   1.  Subject to the definitions and exclusions of the federal Mobile
   Telecommunications Sourcing Act, 4 U.S.C. § 116, a sale of mobile
   communication services shall be sourced to the customer’s place of
   primary use.

   2.  A sale of postpaid calling service shall be sourced to the origination
   point of the communications signal as first identified by either (i) the
   seller’s communications system, or (ii) information received by the
   seller from its service provider, where the system used to transport such
   signals is not that of the seller.

   3.  A sale of a private communications service shall be sourced as follows:
               
               
               
            

      a.  Service for a separate charge related to a customer channel termination
      point shall be sourced to each jurisdiction in which such customer channel
      termination point is located;

      b.  Service where all customer termination points are located entirely
      within one jurisdiction shall be sourced to such jurisdiction in which the
      customer channel termination points are located;

      c.  Service for segments of a channel between two customer channel
      termination points located in different jurisdictions and which segments of
      a channel are separately charged shall be sourced 50% to each jurisdiction
      in which the customer channel termination points are located; and

      d.  Service for segments of a channel located in more than one jurisdiction
      and which segments are not separately billed shall be sourced in each
      jurisdiction based on a percentage determined by dividing the number of
      customer channel termination points in each jurisdiction by the total number
      of customer channel termination points.

HISTORY: 2006, c. 780.