The Legislature has passed Act No. 98-338, which is effective May 1, 1998. This legislation creates a Commercial Mobile Radio Service (CMRS) Board and provides for the levy of a CMRS emergency telephone service charge of seventy cents ($.70) per month per CMRS connection.

CMRS providers must collect the emergency telephone service charge as a separate item on their billings to subscribers and remit the amounts collected to the Board. The Board will distribute the proceeds from these charges to Emergency Communications Districts for use in acquiring, maintaining, and operating wireless enhanced emergency telephone services.

Act No. 98-338 adds new Section 11-98-8(f) to the Code of Alabama 1975 providing that "state and local taxes do not apply to the CMRS service charge." Accordingly, the cellular radio telecommunication services tax administered by the Sales, Use and Business Tax Division will not apply to monthly emergency telephone service charges billed to cellular telephone service subscribers.