The Washington Department of Revenue ruled that apartment-listing services were taxable because the primary purpose of the services was access to toll-free phone numbers.
Washington taxes telecom services, which include access to toll-free phone numbers. However, telecom services do not include data processing and information services when the primary purpose of the service is to process data to generate reports.
The taxpayer contracted for apartment-listing services. The services included access to toll-free phone numbers and access to reports related to calls made using those numbers.
The Department ruled that the primary purpose of the contract was access to the phone numbers, not the reports. As a result, the contract was for taxable telecom services.