Telecommunications

Louisiana Decreases Tax Rates on Telecommunications Services and Prepaid Calling Cards

Effective July 1, 2018, Louisiana has decreased the sales tax rates on telecommunications services and prepaid calling cards.

Missouri Manufacturing Exemption Includes Certain Telecommunications Services

Missouri has enacted legislation clarifying that the state’s manufacturing exemption includes certain telecommunications services.

U.S. Supreme Court Denies Request to Review Florida Ruling on Satellite and Cable TV Services

The U.S. Supreme Court denied a taxpayer’s petition to review a Florida Supreme Court ruling which reversed a lower court’s ruling concerning the tax rate on satellite versus cable services.

Minnesota Enacts Exemption for Fiber and Conduit used in Telecommunications or Pay Television Services

Effective for sales and purchases made after June 30, 2017, fiber and conduit used in transportation of telecommunications or pay television services are exempt in Minnesota.

Cloud-Based Fax, Messaging and Email Services Taxable in Washington

A company was liable for Washington taxes on its cloud-based fax, messaging, and email services. More…

Alabama Adopts Rule for Taxability of Prepaid Wireless Services

Alabama adopted a new sales and use tax rule on sales of prepaid wireless service, effective 03/27/15. More…

Sale of Roaming Services Not Subject to Tax in Florida

Sales of roaming services by a Florida mobile communications services provider were not subject to Florida communications services tax.

Telecom Companies Did Not Qualify for Industrial Processing Exemption in Michigan

Purchases of electricity by telecommunications companies were not eligible for Michigan’s industrial processing exemption because telecommunications signals do not qualify as tangible personal property.

Washington Repeals Exemption for Certain Phone Services

In response to changes in technology and deregulation, to make its laws more current with telecommunication offerings, and due to a 2011 court decision regarding the interpretation of residential telephone service, Washington’s sales tax exemptions for residential telephone service and…

Loyalty Points Treated as Coupons in Tennessee

Loyalty points issued to customers by a wireless telecommunications company are treated as in-store (retailer) coupons, for purposes of Tennessee sales and use tax. When customers redeem points for a discount on goods or services, the points act as an…

Mississippi Extends Broadband Equipment Exemptions

Mississippi has extended its sales and use tax and property tax exemptions for sales of equipment to telecommunications enterprises that is used in the deployment of broadband technologies until July 1, 2020. Both exemptions were previously scheduled to be repealed…

Call Tracking Services Not Taxable in Tennessee

A taxpayer’s sales of call tracking services are not subject to Tennessee sales and use tax. The taxpayer collects and analyzes information pertaining to a retailer’s customers, advertising, and employee call handling skills. The call tracking services do not meet…

Air- to- Ground Telephone Calls Made in Illinois Subject to Telecommunications Tax.

Air-to-ground telephone calls made by airlines are subject to the Illinois Telecommunications Excise Tax when the calls originate or terminate on equipment that is located in Illinois at the time of the call and have a bill for services that…

Roaming Charges for Wireless Calls Made in Mexico Not Subject to Texas Sales Tax.

A telecommunications services provider’s roaming charges for when its Texas customers traveled to Mexico and placed or received calls that originated and terminated in Mexico, were not subject to Texas sales tax. The Mobile Telecommunications Sourcing Act (MTSA) provides a…

Indiana Updates Telecommunication Bulletin – Ancillary Services Exempt

An updated bulletin on telecommunications services, released by the Indiana Department of Revenue, highlights that ancillary services do not qualify as telecommunications services and are therefore not taxable. Pursuant to Indiana legislation, the definition of ancillary services means services that…

Indiana Information Bulletin Explains Taxability of Telecommunication Services

The Indiana Department of Revenue has issued an Information Bulletin explaining the taxability of telecommunications services. Telecommunication service means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point or…

Wyoming Clarifies Telecommunications Services Sourcing

The sourcing rules for ancillary services and prepaid wireless calling services are clarified in a policy statement issued by the Wyoming Department of Revenue. The sourcing rules for these two services were left out of the telecommunications sourcing rules adopted…

Mandatory Charges Related to Telecommunication Services are Taxable in Missouri

The Regulatory Cost Recovery Charge, the Federal Universal Service Charge, and the Municipal Gross Receipts Surcharge collected by a telephone company are mandatory charges subject to state and local sales tax. These charges and the tax are included on the…

South Dakota Amends Provisions Governing Imposition of Tax on Telecommunications Services and Ancillary Services

Effective July 1, 2009, South Dakota amends taxation provisions to specifically apply the state’s tax on gross receipts to all intrastate, interstate, and international telecommunications services that originate and terminate in South Dakota, or that originate or terminate in the…

North Dakota Enacts Telecommunications Infrastructure Exemption

Tangible personal property used to construct or expand telecommunications service infrastructure in North Dakota is exempt form sales and use tax, effective July 1, 2009, through June 30, 2011. To be exempt, the tangible personal property must be incorporated into…

Tennessee Taxability of DSL Services Discussed

The Tennessee Department of Revenue has issued a letter ruling explaining the taxability of DSL services. The letter clarified that the state does not impose sales and use tax on the retail sales of DSL Internet access services that are…

California Cell Phone Regulation Provided Safe Harbor from Unfair Competition Claims

The California Court of Appeals has upheld a trial courts decision that a taxpayer’s unfair competition and misleading advertisement claims against a telecommunication provider be dismissed. In compliance with the California Code of Regulation, providers selling cell phones at half-price…

Electricity Used to Power Telecommunications Equipment Taxable in New York

The New York Commissioner of Finance has upheld the Tax Appeals Tribunal’s denial of a telecommunications service provider’s claim for a refund of sales tax paid on purchases of electricity used to power telecommunications equipment. The taxpayer based its claim…

New York Games and Sounds Sold by Mobile Telecom Provider Discussed

The New York Department of Taxation and Finance has issued an advisory opinion regarding the taxability of wallpaper, games, music, and sounds sold by a mobile telecommunications provider. The Department found that the receipts from the sales of these products…