Fixed Monthly Charges for Mobile Voice Services Subject to Tax in New York

Thursday, June 26th, 2014

 
 
An icon representing cloud service.
Share
Link
New York
General

The New York Division of Tax Appeals ("Division") recently determined that a taxpayer's fixed monthly charges for its mobile voice services were subject to sales tax.

New York taxes receipts from telephone and telegraph services, except for interstate and international services. Mobile voice services sold by home service providers are subject to tax when sold for a fixed periodic charge.

The taxpayer sold both interstate and intrastate mobile voice services for a fixed monthly charge. The taxpayer argued that the charges were not subject to tax because they were for interstate voice services.

The Division determined that the taxpayer's monthly charges were subject to tax. New York expressly taxed mobile voice services sold for a fixed periodic charge. The exception from tax for interstate telephone services did not apply to interstate mobile voice services. It did not matter that part of the fixed monthly charge was for interstate services. The charge was therefore subject to tax.

The Division also ruled that the federal Mobile Telecommunications Sourcing Act did not preempt New York's imposition of tax on interstate voice services. The federal law, the Division ruled, left room for New York to impose tax on these services.

http://www.dta.ny.gov/pdf/determinations/825010.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...

Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019 -Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business t...