96-075
Response
May 8, 1996
Request
XXXXX
210
N 1950 W
Salt
Lake City, UT 84134
Dear
XXXXX
I
have recently decided to open a voice mail service in which my customers will
be able to give out a phone number and extension which reaches my computer and
that customers own mailbox. When called people may leave messages and/or faxes
for my customers. Then my customers can call and retrieve their messages/faxes.
I will be selling nothing but this service. Please advise on whether I need to
charge sales tax. You may reply by fax at XXXXX. Thank you kindly.
XXXXX
XXXXX
RE: Advisory opinion - Sales tax on voice mail
services
Dear
XXXXX,
We have received your request for an
advisory opinion pertaining to the application of sales tax to the voice mail and
fax services that you provide for your customers. We find as follows:
All intrastate telephone service is
subject to sales tax. Telephone service
is defined as “the transmission for hire of signs, signals, writing, images,
sounds, messages, data or other information of any nature. . . .” Charges for voice mail services are taxable.
Your request letter does not
describe how to charge your customers, but we assume for purposes of this
response that they may pay an initial subscribers charge plus either a monthly
flat fee or a charge per use for voice mail services. All of these charges are subject to sales tax. Historically, we have held that charges for
sending or receiving faxes for your customers are not taxable. Non-taxable charges must be separately
stated or the entire amount is taxable.
This is a good opportunity to let
you know that the legislature is studying all telecommunications services. The
study is projected to conclude this year, and it may result in changes to the
tax code that will impact your business.
If the study concludes as scheduled, the legislature will address these
issues in the 1997 session. Of course,
we will issue tax bulletins as necessary to keep you up to date. In the meantime, please contact us if you
have additional questions.
For the Commission,
Alice Shearer,
Commissioner