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Ezel / Tax Rulings / TX
TX 8511L0686E13 Sales and/or Use Tax (State,Local,MTA) 1985-11-20

Were intrastate telecommunications sold to licensed and certificated carriers exempt from Texas sales tax?

Short answer: No. The Comptroller said there was no exemption for intrastate telecommunications provided to carriers defined in Rule 3.297(a)(1).

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 telecommunications and carrier rules to intrastate telephone service furnished to licensed and certificated carriers. It expressly says different facts could change the opinion. Current carrier definitions, telecommunications sourcing, exemptions, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded.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. Taxpayer-identifying details are redacted. 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

The Comptroller said there was no exemption for intrastate telecommunications provided to licensed and certificated carriers as defined in Rule 3.297(a)(1).

Common questions

Were the intrastate telephone services exempt? No.

Did carrier status create an exemption? No.

Which rules did the letter reference? Rule 3.344 for telecommunications and Rule 3.297 for carriers.

Citations and references

  • Texas Comptroller Rule 3.344 — telecommunications services.
  • Texas Comptroller Rule 3.297(a)(1) — licensed and certificated carriers.

Source

Original ruling text

November 20,1985

Dear ***:

Thank you for your letter of November 6, 1985, concerning tax on
intrastate telephone services.

I am enclosing State Sales and Use Tax Rule 3.344, Telecommunication
Services and Rule 3.297, Carriers.

There is no exemption from tax on intrastate telecommunications provided
to Licensed and certified carriers as defined in Rule 3.297 (a)(1).

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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