PINless Wireless Minutes Not Taxable in Michigan

Wednesday, August 16th, 2017

 
 
Share
Link

The Michigan Court of Appeals recently ruled that a taxpayer's sales of prepaid wireless minutes were not taxable unless they were sold on a physical card or with an authorization number.

The taxpayer, a gas station and convenience store, sold prepaid cellphones minutes. Customers could choose to add prepaid minutes to their cellphones through "PINless top-up minutes" or electronic personal identification numbers (EPIN). "PINless top-up minutes" automatically download to a cellphone after a cashier enters the customer's phone number into a system. EPIN minutes require the customer to enter a PIN into their cellphone in order to access the minutes.

The court analyzed whether either type of prepaid purchase was a prepaid telephone calling card or prepaid authorization number, which are taxable in Michigan. It ruled that the EPIN transactions were taxable because the PIN was a type of prepaid authorization number. However, the "PINless top-up minutes" were not taxable because neither a calling card or authorization number was provided with the purchase.

https://www.ttrus.com/PINless Wireless Minutes


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.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...