Sales Tax State Activity Update - January 2009

Utah Amends Telecom Exemptions

The Utah State Tax Commission has amended and repealed some sales and use tax rules effective January 1, 2009. The rule regarding telecommunication services, R865-19S-90, has been amended.

The Rule specifies what is considered to be a taxable or a nontaxable telecommunications charge. Previously, charges for “interstate long distance or toll calls” had been listed as a nontaxable charge.

The Rule has been amended to specify that only charges for interstate calls are considered to be nontaxable charges. Further, contributions in aid of construction, land development fees, payments in lieu of land development fees, and special plant construction and relocation charges have been removed from the list of nontaxable telecommunication charges.

Removed from the list of taxable telecommunication charges are charges for optional telephone features, such as call waiting, caller ID and call forwarding; and nonrecurring charges that are ordinarily charged to subscriber once or only under exceptional circumstances, such as charges to establish, change or disconnect telephone service or optional features and repairs to telephone equipment that retains its character as tangible personal property.

(Rule R865-19S-90, Utah State Tax Commission, Amended, effective 1/1/2009)

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address