House Bill 3484 was signed into law and made effective by Governor Bredesen on May 18, 2004. This bill will enact procedures for taxpayers and Internet service providers to obtain refunds of sales tax paid on Internet access charges pursuant to the decision handed down in Prodigy Services Corp., Inc. v. Johnson, No. M2002-00918-COA-R3-CV (Tenn. Ct. App. August 12, 2003.)This bill requires that any purchaser seeking a refund of sales taxes paid on Internet access charges shall provide a written request to their Internet service provider no later than 60 days after the bill becomes effective. Purchasers may seek refunds extending back to December 1, 2000, through the present, but claims will only be valid for the periods that sales tax on Internet access charges were actually paid by the purchaser. The written request may be in the form of an e-mail or other electronic means as designated by the seller.
The Internet service provider may file a refund claim with the Tennessee Department of Revenue (DOR) for sales tax collected from purchasers beginning January 2001 through current on such charges, provided that the claim for refund is filed no later than 120 days after the bill becomes effective.
Other claims for refund that are submitted outside the procedures outlined in this bill shall not be permitted either against the DOR or the Internet service provider.