                                 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&#8217;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. &#xA7; 116, a sale of mobile
   communication services shall be sourced to the customer&#8217;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&#8217;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.