Sales Tax on Telecommunication Services Exemptions
Telecommunications services between locations in Texas are subject to state and local sales tax, whereas most interstate telecommunications services are only subject to state sales tax. Mobile telecommunications services are subject to state and local sales tax based on the place of primary use.
“Telecommunications services” is broadly defined as electronic transmission or reception of sounds, data, and information and is not limited to current technology. The definition includes newer methods of sending and receiving signals that may be introduced in the future.
Telecommunications services that are subject to both state and local sales tax include such things as:
- basic local exchange service
- installation and service connection fees
- intrastate long-distance telephone calls
- call waiting
- call forwarding
- intrastate coin-operated telephones
- mobile telephone service
- facsimile (FAX) service
- mobile radio service
- equipment rented or leased to the customer in connection with a telecommunications service
For additional information, visit TX Comptroller
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