Telecommunications

Payments Made by Wireless Service Carriers to Phone Retailer to Discount Phone Purchase Prices Should be Included in Taxable Sales Price in Maine

Payments by wireless service carriers to a phone manufacturer to reimburse the manufacturer for phone price discounts given to customers who entered into service contracts with the carriers should have been included in the sale price of the phones for sales tax.

A Virginia Internet Service Provider Properly Denied Sales Tax Exemption

After failing to establish that it was entitled to the Internet Service Provider (ISP) sales tax exemption, a telecommunications equipment and software services provider was denied a Virginia sales tax refund.

Vermont to Require Marketplace Facilitators to Collect Universal Service Charge

Effective July 1, 2021, Vermont will require marketplace facilitators to collect the Universal Service Charge on retail sales of prepaid wireless telecommunications services

California Superior Court Bars CDTFA from Applying Sales Tax Regulation to Certain Sales of Bundled Cell Phones

A California Court barred the California Department of Tax and Fee Administration from applying a sales tax regulation to bundled sales of cellular telephones and service by carrier-retailers.

Virginia Telecommunications Services Provider Denied Sales and Use Tax Exemption

A Virginia taxpayer and Internet Services Provider failed to provide proper documentation that their services qualify for the Internet Service Provider (ISP) exemption.

Indiana Telecom Companies Receive Refund for Taxes Paid for their Associated Companies

Telecommunications companies were initially denied a refund on the purchase of telecommunications equipment by the Indiana Department of Revenue because multiple different companies were named on the invoices.

Pre-Installation Telecommunications Component Parts Taxable in California

Pre-installed component parts such as cables, conduits, and poles of telephone lines are subject to California sales and use tax.

Cell Phones Subject to Tax on Full Purchase Price in Michigan

A retailer was subject to Michigan use tax on the full purchase price of phones that it purchased from Verizon and subsequently gave away for free with service plans.

Prepaid MTS Sellers to Stop Collecting State MTS Surcharge, Begin Collecting 911 Surcharge in California

Prepaid MTS sellers in California must stop charging state-level portion of MTS surcharge, begin collecting 911 surcharge.

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…