45 Ind. Admin. Code 2.2-4-14

Current through October 31, 2024

Section 45 IAC 2.2-4-14 - Local exchange telephone service or intrastate message toll telephone service

Authority: IC 6-8.1-3-3

Affected: IC 6-2.5

Sec. 14.

(a) In general, the furnishing of telephone services by public utilities to consumers is subject to the state gross retail tax. The gross receipts of public utilities from the furnishing of local exchange telephone service or intrastate message toll service is subject to the state gross retail tax. The tax applies to the total receipts of such public utilities for furnishing such services. The tax is borne by the consumer.

(b) Every person engaged as a public utility in the furnishing of communication service with respect to the furnishing of local exchange telephone service or intrastate message toll telephone shall be and constitute a retail merchant in respect thereto, and the gross income received therefore upon billings or statements rendered to consumers shall constitute gross retail income received from retail transactions.

(c) Local exchange intrastate telephone service. The tax is imposed on the gross receipts from charges periodically billed to consumers for the privilege of making local exchange calls to other telephones located within the local exchange telephone area. The tax applies irrespective of whether the actual net charge is based upon flat rate charge, a message charge, a minimum charge, service charge, or a membership fee.

(d) Intrastate message toll telephone service. The tax is imposed on the gross receipts from message charges periodically biled [sic.] to consumers for the privilege of transmitting messages, information, or intelligence between points located within Indiana where the amount of the charge is regulated by the Public Service Commission of Indiana. The tax applies to the total receipts of such service irrespective of whether the actual net charge is based upon a flat rate charge, a message charge, a minimum charge, service charge or a membership fee.

(e) The term "public utilities" as used in this regulation [45 IAC 2.2] means any organization which is engaged in the furnishing or selling of telephone services and having the right of eminent domain or subject to governmental regulations in connection with the furnishing of public utility services. The term includes governmental units and not-for-profit organizations which furnish public utility services.

45 IAC 2.2-4-14

Department of State Revenue; Ch. 4, Reg. 6-2.5-4-6 a (010); filed Dec 1, 1982, 10:35 am: 6 IR 20