Sec. 3. (a) As used in this chapter, the term "tax" means:

(1) any charge that is imposed by the state or a political subdivision of the state for the purpose of generating revenues for governmental purposes and, except as provided in subsection (b), is not a fee imposed for a specific privilege, service, or benefit conferred; or

(2) the imposition on a seller of an obligation to collect and to remit to the state or a political subdivision of the state any gross retail tax, sales tax, or use tax imposed on a buyer by such a governmental entity.

(b) The term does not include any franchise fee or similar fee imposed by the Indiana utility regulatory commission under IC 8-1-34-23 under Section 622 or 653 of the Communications Act of 1934 (47 U.S.C. 542, 47 U.S.C. 573), or any other fee related to obligations or telecommunications carriers under the Communications Act of 1934 (47 U.S.C. 151 et seq.), except to the extent that:

(1) the fee is not imposed for the purpose of recovering direct costs incurred by the franchising or other governmental authority from providing the specific privilege, service, or benefit conferred to the payor of the fee; or

(2) the fee is imposed for the use of a public right-of-way based on a percentage of the service revenue and the fee exceeds the incremental direct costs incurred by the governmental authority associated with the provision of that right-of-way to the provider of Internet access service.

(c) For purposes of subsection (b), "direct costs" means costs incurred by a governmental authority solely because of an Internet service provider's use of the public right-of-way. The term does not include costs that the governmental authority would have incurred if the Internet service provider did not make such use of the public right-of-way. Direct costs shall be determined in a manner consistent with generally accepted accounting principles.

As added by P.L.44-2015, SEC.1.