When a Missouri employee purchases prepaid calling cards, by way of payroll deductions, from an out- of- state calling card provider, the sale is subject to Missouri sales tax. There are no exceptions to this tax liability, therefore, it does…
Virginia Sales of Broadcasting Equipment and Services Exempt
An exemption from Virginia sales and use taxes is applicable to a taxpayer’s sales of broadcasting equipment and accessories to the extent such equipment is used directly in disseminating a signal into the air. However, equipment and accessories used to…
New York Judge Rules Enhanced Electronic Messaging Services Not Subject to Tax
New York Judge Rules Enhanced Electronic Messaging Services Not Subject to Tax
Sale of Equipment with Service is a Taxable Bundled Transaction in Louisiana
Louisiana has issued a letter ruling on two types of bundled transactions that involve the sale of equipment and wireless internet service. The letter ruling discusses two scenarios that involve a wireless internet service provider that requires customers to sign…
Mississippi Updates Telecommunications Service Rule
To be in compliance with the Streamlined Sales and Use Tax (SST) Agreement, the Mississippi sales and use tax rule on telecommunications services has been updated to conform to Senate Bill 2810, Laws 2007. Bill 2810 enacted provisions, definitions, and…
Nebraska Rules on Taxability of Telecommunications Services
The Nebraska State Tax Commissioner has ruled on a taxpayer’s question regarding the taxability of services associated with the installation or repair of telecommunications structures such as telephone, telegraph, mobile telephone or community television antennas. The Commissioner found that the…
New York Telecommunications Services Purchased by ISPs Exempt
A memorandum has been issued by the New York Department of Taxation and Finance regarding the state and local sales tax liabilities of telecommunications services purchased by an Internet Service Provider (“ISP”). As a result of a Tax Appeals Tribunal…
Kentucky Tax Due by Pay Phone Operator
The Kentucky Board of Tax Appeals held that a company that operated pay phones was providing communications services subject to Kentucky sales tax.
Tax Applies to Discounted Cell Phone Price in Missouri
Regardless of the discount, all telecommunications carriers that sell cellular phones must charge sales tax based on the actual price to their customers, even if less than the carrier’s cost. The remainder of the phone’s cost is considered to be…
IRS Offers Standard Refunds for Wrongly Collected Long Distance Excise Tax
The IRS announced that any taxpayer who paid the long-distance telephone tax will get a refund on their 2006 federal income tax return.
Bellsouth Denied Tax Refund Request on Voice Mail Services
Following a recent audit, the Tennessee Department of Revenue determined that Bellsouth Telecommunication’s most basic voice mail service was not taxable, but that other voice mail services (which offered customers extra features and functionality) were, in fact, taxable. The Company’s…
South Carolina Explains Taxability of Communication Services
In a recent revenue ruling, South Carolina position for sales and use tax on communication services was explained. The following represents a partial list of communication services deemed taxable: telephone services (including a wireless transmission system or voice over Internet…
South Carolina Rules Early Termination Charge Subject to Tax
The South Carolina Department of Revenue has advised that a charge by a telecommunication service provider for early termination was subject to tax. The charge was a fixed dollar amount multiplied by the number of months remaining on the agreement.…
Excess Hotel Internet Access Services Taxable in Texas
In response to a taxpayer\’s question, the Texas Comptroller ruled that a hotel\’s charges for internet access services were taxable if they exceeded $25 per month.
Alabama Amends Utility Gross Receipts and Service Use Tax Provisions
Effective April 4, 2006, Alabama amended certain provisions of the Utility Gross Receipts Tax and the Utility Service Use Tax by providing rules regarding the sourcing of gross receipts and gross sales for public utilities that provide telegraph or telephone…
Virginia Imposes New Sales and Use Tax On Communications
Effective January 1, 2007, Virginia will impose a sales or use tax on purchasers of communication services at the rate of 5% of the sales price of each communications service sourced to Virginia. Certain exemptions to this tax apply, including…
Telephone Equipment is Exempt in Missouri
The Supreme Court of Missouri reviewed the Administrative Hearing Commission’s (AHC) analysis of whether certain equipment purchased by a telephone company qualified for a manufacturing exemption. The AHC determined that telephone network equipment was exempt from sales and use tax…
Federal Court Strikes Down Excise Tax.
The Federal District Court in Ohio ruled that the IRS may only collect the federal excise tax for long-distance telephone service on charges that vary by the distance of the calling parties and by the duration of each transmission.
Minnesota: Voice over Internet Protocol Service Subject to Tax
Voice over Internet Protocol (VoIP) services are subject to Minnesota sales and use tax as a telecommunications service.
Tennessee Bill Clarifies Definition of “”Telecommunications Service.””
In an amendment to Senate Bill 2310, the Tennessee General Assembly has provided a new definition of “telecommunications service.” Effective July 1, 2007, “telecommunication service” is defined as “electronic transmission, conveyance, or routing of voice, data, audio, video, or any…
Pennsylvania Issues Bulletin on VOIP Services.
In a recent sales tax bulletin, the Pennsylvania Department of Revenue has stated that Voice Over Internet Protocol (VOIP) services are subject to Pennsylvania state and local sales taxes. The VOIP service is such that it falls under the statutory…
New York Denies Refund Claim Finding Line Access Charges to be Taxable.
The State of New York denied a refund claim citing that line access charges were taxable as telephony or telephone services and did not qualify as interstate internet access charges. The taxpayer’s main argument was that the lines were a…
Indiana Issues Letter on VOIP Calling Cards.
An Indiana taxpayer protested the assessment of sales tax on their sale of calling cards at a grocery store.
Kansas Rules That Telecommunications Equipment Is Not Exempt.
The Kansas Supreme Court found that a taxpayer\’s purchase of telecommunications equipment was not exempt from Kansas sales tax as machinery or equipment used in manufacturing tangible personal property.