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Ezel / Tax Rulings / TX
TX 8510L0668C10 Sales and/or Use Tax (State,Local,MTA) 1985-10-16

Were dedicated trunk lines and DID numbers sold to a mobile-telephone provider taxable, and could the provider use a resale certificate?

Short answer: Yes. The telephone-company charges were taxable, but the mobile provider could give a resale certificate instead of paying tax.

Apply this to your situation

This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official 1985 Texas Comptroller taxpayer-response letter applying then-current Rule 3.344(b)(1) to dedicated trunk lines and specific DID numbers used by a mobile-telephone provider to access a telephone company's network. STAR's caption mentions procedures if a provider refuses a resale certificate, but the reproduced body does not address refusal. It expressly says different facts could change the opinion. Current telecommunications, network-access, resale, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

Telephone-company charges to a mobile-telephone service provider for dedicated trunk lines and specific DID numbers used to access network lines were taxable under Rule 3.344(b)(1).

The mobile provider could give the telephone company a resale certificate instead of paying sales tax.

Common questions

Were the trunk-line charges taxable? Yes.

Were charges for specific DID numbers taxable? Yes.

Could the provider use a resale certificate? Yes.

Did the reproduced body explain what to do if the telephone company refused the certificate? No.

Citations and references

  • Texas Comptroller Rule 3.344(b)(1) — telecommunications charges applied in the letter.

Source

Original ruling text

October 16, 1985

Dear ***:

Thank you for your letter of October 8, 1985, concerning the recent
imposition of sales tax on telecommunications services.

Charges made by a telephone company to a mobile telephone service
provider for dedicated trunk lines and specific DID numbers to obtain
access to the telephone company's network lines are taxable. See
section (b) (1) of the enclosed Rule 3.344. The mobile telephone
service provider may issue a resale Certificate to the telephone company
in lieu of paying the sales tax.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at
the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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