| (a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Basic local exchange telephone service--The provision
by a telephone company of each access line and each dial tone to a
fixed location for sending and receiving telecommunications in the
telephone company's local exchange network. Services are considered
basic irrespective of whether the customer has access to a private
or party line, or whether the customer has limited or unlimited access.
The term does not include international, interstate, or intrastate
long-distance telecommunications services or mobile telecommunications
services.
(2) Internet--Collectively the myriad of computer and
telecommunications facilities, including equipment and operating software,
that comprise the interconnected worldwide network of networks that
employ the Transmission Control Protocol/Internet Protocol, or any
predecessor or successor protocols to the protocol, to communicate
information of all kinds by wire or radio.
(3) Internet access service--A service that enables
users to access content, information, electronic mail, or other services
offered over the Internet and may also include access to proprietary
content, information, and other services as part of a package of services
offered to consumers. The term does not include telecommunications
services. See §3.366 of this title (relating to Internet Access
Services).
(4) Interstate long-distance telecommunication service--A
telecommunication service that originates in one state, crosses state
lines, and terminates in another state.
(5) Intrastate long-distance telecommunications service--A
telecommunication service that originates and terminates within one
state, but crosses the boundaries on subdivisions or jurisdictions
within the state.
(6) Mobile telecommunications service--The provision
of a commercial mobile radio service, as defined in 47 C.F.R. 20.3
of the Federal Communications Commission's (FCC) regulations in effect
on June 1, 1999 under the Mobile Telecommunications Sourcing Act (4
U.S.C. §§116-126). The term includes cellular telecommunications
services, personal communications services (PCS), specialized mobile
radio services, wireless voice over Internet protocol services, and
paging services. The term does not include telephone prepaid calling
cards or air-ground radio telephone services as defined in 47 C.F.R.
22.99 of FCC regulations in effect on June 1, 1999.
(7) Pay telephone coin sent--Telecommunications service
paid for by the insertion of coins into a coin-operated telephone.
(8) Place of primary use--The physical street address
that is representative of where a customer primarily uses a mobile
telecommunications service. That location must be either the customer's
residential street address or the customer's primary business street
address that is within the licensed service area of the service provider.
The individual or entity that contracts with the service provider
is the customer. If the individual or entity that contracts with the
service provider is not the end user, then the physical street address
where the end user primarily uses the service determines the customer's
place of primary use. For example, a business owner who is located
in Austin, Texas establishes mobile telecommunication service accounts
for employees who are located in other cities. One employee does business
from his home in Dallas, Texas. Two other employees work at an office
that is located in Houston, Texas. Another employee works at an office
that is located in New Orleans, Louisiana. The home street address
of the employee in Dallas is the place of primary use for that cellular
phone account. The place of primary use for the two Houston employees
is the street address of the Houston office. The place of primary
use for the employee in Louisiana is the street address of the New
Orleans office.
(9) Prepaid telecommunications service--A wireless
or wire telecommunications service for which the provider requires
a customer to prepay the full amount prior to provision of the service.
The term does not include the sale or use of a telephone prepaid calling
card as defined in paragraph (15) of this subsection. A card, pin
number, access code or similar device that allows a user to access
only a specific network, or that is intended for use with a specific
user account or device (e.g., to add more minutes to an existing account)
is a prepaid telecommunications service and is taxed as the sale of
a telecommunications service. Local sales tax is collected as explained
in subsection (h) of this section.
(10) Private communication service--A telecommunication
service that entitles the customer to exclusive or priority use of
a communications channel or group of channels between or among termination
points, regardless of the manner in which such channel or channels
are connected, and includes switching capacity, extension lines, stations,
and any other associated services that are provided in connection
with the use of such channel or channels.
(A) As it relates to private communication service,
the term "communications channel" means a physical or virtual path
of communications over which signals are transmitted between or among
customer channel termination points.
(B) As it relates to private communication service,
the term "customer channel termination point" means the location where
the customer either inputs or receives the communications.
(11) Seller--Any person who sells telecommunications
services including a hotel, motel, owner or lessor of an office, residential
building or development that contracts and pays for telecommunications
services for resale to guests or tenants.
(12) Taxable service--A telecommunications service
or other taxable service listed in Tax Code, §151.0101.
(13) Telecommunications services--The electronic or
electrical transmission, conveyance, routing, or reception of sounds,
signals, data, or information utilizing wires, cable, radio waves,
microwaves, satellites, fiber optics, Voice over Internet Protocol
(VoIP), or any other method now in existence or that may be devised,
including but not limited to long-distance telephone service. The
term includes mobile telecommunications services and prepaid telecommunications
services. The term does not include:
(A) the storage of data or other information for subsequent
retrieval or the processing, or reception and processing, of data
or information intended to change its form or content;
(B) the sale or use of a telephone prepaid calling
card;
(C) Internet access service; or
(D) pay telephone coin sent.
(14) Telephone company--A person who owns or operates
a telephone line or telephone in this state and charges for its use.
(15) Telephone prepaid calling card--A card or other
item, including an access code, that represents the right to access
telecommunications services, other than prepaid telecommunications
services as defined in paragraph (9) of this subsection, through multiple
devices, regardless of the network providing direct service to the
device used, for which payment is made in incremental amounts and
before the call or transmission is initiated. For example, a calling
card that allows a user to access a long distance telecommunications
network for the purpose of making international calls through a pay
phone is a telephone prepaid calling card. The sale of a telephone
prepaid calling card is taxed as the sale of tangible personal property.
(16) Voice over Internet Protocol (VoIP)--A telecommunication
service where a phone call is transmitted over a data network. The
term "Internet Protocol" is a catchall phrase for the protocols and
technologies of encoding a voice call that allow the voice call to
be slotted in between data on a data network, including the Internet,
a company's Intranet, or any other type of data network.
(b) Taxable telecommunications services. The total
amount charged for a taxable telecommunications service is subject
to sales tax. Sales tax is due on a charge for the following:
(1) basic local exchange telephone services;
(2) enhanced services such as metro service, extended
area service, multiline hunting, and PBX trunk;
(3) auxiliary services such as call waiting and call
forwarding;
(4) intrastate long-distance telecommunications services;
(5) interstate long-distance telecommunications services
that are both originated from, and billed to, a telephone number or
billing or service address within Texas such that if a call originates
in Texas and is billed to a Texas service address, the charge is taxable
even if the invoice, statement, or other demand for payment is sent
to an address in another state;
(6) mobile telecommunications services for which the
place of primary use is located in Texas;
(7) telegraph services that are both originated from,
and billed to, a person within Texas;
Cont'd... |
