Effective April 1, 2004 the interstate telecommunications sales tax rate in Louisiana will change from its current rate of 3% down to 2%. However, the intrastate telecommunications tax rate will remain unchanged at 3%. In Louisiana, a telecommunication service is…
Virginia international communications provider not exempt.
Purchases of computers, office equipment, and other tangible personal property by an international voice and data communications provider were not exempt from tax under the Virginia telecommunications exemption. It states that tangible personal property sold or leased to a telecommunications…
Minnesota Sales and Use Tax on Telecommunications Services Updated
Telecommunication services in Minnesota are taxable. These services include fax, teleconference, digital subscriber lines, direct satellite, music services, and some automated answering services, to name a few.
Massachusetts Telecom Tax Not Imposed
A new 911 surcharge will appear on telephone customers\’ land line monthly bills beginning September 1, 2003.
Minnesota Telecommunications Tax
Providing communications services is not deemed to be manufacturing of personal tangible property or to be a taxable service, though the end consumers pay tax on the service they receive.
Connecticut now taxes satellite broadcasting.
Act 1 (HB6802) of 2003 imposes a 5% gross receipts tax on satellite companies.
South Dakota bundled telecommunication services.
When a telecommunication transaction is a bundled together with taxable and nontaxable services, the nontaxable part will be subject to tax unless the provider can “reasonably identify the nontaxable portion from its books and records kept in the regular course…
Wisconsin communication tower rental taxable.
Renting space on a communications tower located on leased land is subject to Wisconsin sales and use tax. A communication tower is considered, by both The Wisconsin Court of Appeals and the Tax Appeals Commission, to be tangible personal property,…
South Dakota imposes 4% sales tax on interstate telecommunications.
Beginning May 1, 2003, interstate telecommunication services originating or terminating and billed to an address in South Dakota are subject to the 4% state sales tax. However, the tax will not be applicable to (1) any 800 number or 800…
Mobile Telecommunications Act
Under this act, the taxable definition of telecommunication service has been amended to include mobile telecommunications services. The provisions of the federal Mobile Telecommunications Sourcing Act (P.L. 106-252), effective August 1, 2002, states that a customer’s home service provider will…
Wisconsin adds to the list of taxable telecommunication services.
Taxable telecommunication message services now include mechanical and nonmechanical telephone answering services, security monitoring that has a recorded message which notifies customers or authorities, and e-mail services. In the category of taxable telecommunication services call forwarding, caller ID, and Internet…
Massachusetts modifies the taxation of prepaid calling arrangements
In Massachusetts, the sale of \”prepaid calling arrangements\” should now be taxed at the point of use rather than the point of sale.
New York sale of prepaid calling card not taxable.
Sales and use tax were not applicable to prepaid calling cards sold by telecom providers to various resellers in New York between January 1, 1998 and March 1, 2000. However, after March 1, 2000 resale certificates needed to be obtained.…
New Mexico city ordinance preempted by federal law.
In 1998, Santa Fe enacted a city ordinance which required owners of telecommunication facilities to get lease approval by the city, making sure it was “in the best interest of the public”. Section 253 of the Federal Telecommunications Act of…
Texas telecommunication equipment taxable.
Any equipment leased and installed for use in a Texas hotel or motel is subject to state sales and use tax. The charge for equipment and installation is considered part of the direct broadcast satellite television service, even if it…
Tennessee network service not considered taxable telecommunications.
Computer network services using computer systems to display information and allow users to interact to make transactions are not considered taxable for sales and use tax purposes, even though there are some telecom transmissions occurring during the process. The court…
Washington imposes excise tax.
A 911 excise tax of 20 cents per month is imposed as of January 1, 2003 on each radio access (wireless) line whose primary place of use is located within the state of Washington. Currently, a state enhanced 911 excise…
Louisiana retail telecommunications exemption.
The first purchase of a piece of equipment by an individual who holds a Federal Communications Commission (FCC) license is now exempt from sales tax.
Minnesota Exemption of Equipment Not Applicable to Internet Service Providers
An exemption is available for telecommunication services providers who purchase machinery and equipment and use it directly to provide their services as a sale at retail
Louisiana injunction of exclusion for wireless phones.
An injunction is in place which prohibits the enforcement of Act 85(S.B 85).
The provision of satellite transmission services in Illinois is not subject to telecommunications excise tax.
The Court found that the service provider was merely a middleman enabling its customers to transmit information and did not originate, modify, or terminate and of the communications. (Spacecom Systems, Inc., Illinois Circuit Court, Cook County v Illinois Department of…