Okla. Admin. Code § 710:65-19-330

Current through Vol. 42, No. 3, October 15, 2024

Section 710:65-19-330 - Telecommunications services

(a)Definitions. The following words and terms, when used in this Section, shall have the following meaning, unless the context clearly indicates otherwise:

(1)"Air-to-ground radiotelephone service"means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft . [68 O.S. § 1354.30(A)(1) ]

(2)"Ancillary services"means services that are associated with or incidental to the provision of telecommunication services, including but not limited to "detailed telecommunications billing", "directory assistance", "vertical service", and "voice mail service". [68 O.S. § 1354(A)(4)(d) ]

(3)"Call-by-call basis"means any method of charging for telecommunications services where the price is measured by individual calls . [68 O.S. § 1354.30(A)(2) ]

(4)"Communications channel"means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points . [68 O.S. § 1354.30(A)(3) ]

(5)"Customer"means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunications service."Customer"does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area . [68 O.S. § 1354.30(A)(4) ]

(6)"Customer channel termination point"means the location where the customer either inputs or receives the communications . [68 O.S. § 1354.30(A)(5) ]

(7)"End user"means the person who utilizes the telecommunications service. In the case of an entity,"End user"means the individual who utilizes the service on behalf of the entity . [68 O.S. § 1354.30(A)(6) ]

(8)"Home service provider"means the same as that term is defined in Section 124(5) of Public Law 106-252, the Mobile Telecommunications Sourcing Act . [68 O.S. § 1354.30(A)(7) ]

(9)"International telecommunications services" defined. "International telecommunications services" means all telecommunications services that either (1) originate in this state and terminate outside of the United States or (2) originate outside of the United States and terminate in this state, where, in either instance, a service address of the telecommunications service is in this state.

(10)Interstate and International "800 service" means a "telecommunications service" that allows a caller to dial a toll-free number without incurring a charge for the call typically marked under the name "800", "855", "866", "877", and "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission,

(11)Interstate and International "900 service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to call into the subscriber's prerecorded announcement of live service typically marketed under the name "900" service and any subsequent numbers designated by the Federal Communications Commission. "900 service" does not include charges for collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer

(12)"Interstate" means a telecommunications service that originates in one state, territory or possession of the United States, and terminates in a different state, territory or possession of the United States.

(13)"Intrastate" means a telecommunications service that originates in one state, territory or possession of the United States, and terminates in the same state, territory or possession of the United States.

(14)"Local exchange telecommunications services" defined. "Local exchange telecommunications services" means the provision of each access line and each dial tone to a fixed location for sending and receiving service in the provider's local exchange network. Local exchange service includes, but is not limited to, all ordinary exchange and toll service, extra listings, joint-user service, customer access line charges, and auxiliary services (call waiting, call forwarding, etc.).

(15)"Mobile telecommunications service"means the same as that term is defined in Section 124(5) of Public Law 106-252, the Mobile Telecommunications Sourcing Act . [68 O.S. § 1354.30(A)(8) ]

(16)"Paging service"means a "telecommunications service" that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.

(17)"Place of primary use"means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services,"Place of primary use"must be within the licensed service area of the home service provider . [68 O.S. § 1354.30(A)(9) ]

(18)"Post-paid calling service"means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to which a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service, except a prepaid wireless calling service, that would be a prepaid calling service except it is not exclusively a telecommunications service . [68 O.S. § 1354.30(A)(10) ]

(19)"Prepaid calling service"means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount . [68 O.S. § 1354.30(A)(11) ]

(20)"Private communication service"means 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 . [68 O.S. § 1354.30(A)(13) ]

(21)"Prepaid wireless calling services"means a telecommunications wireless service that provides the right to utilize mobile wireless service as well as other nontelecommunicaton services, including the download of digital products delivered electronically, content and ancillary services, which must be paid for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount. [68 O.S. 1354.30(A)(12)]

(22)"Service address"means:

(A)The location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid;

(B)If the location in subparagraph (A) of this paragraph is not known,"service address"means the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller; and,

(C)If the locations in subparagraphs (A) and (B) of this paragraph are not known,"service address"means the location of the customer's place of primary use . [68 O.S. § 1354.30(A)(14) ]

(23)"Value-added non-voice services" means a service in which computer applications are used, other than for purposes of transmission conveyance or routing, to act on the form, content, code or protocol of the information or data.

(b)Sales tax levied on the sale of telecommunications services, ancillary services and telecommunications nonrecurring charges. Sales tax is levied on the sale of telecommunications services regardless of the vendor of said service as follows:

(1) Intrastate, interstate and international telecommunications services sourced to this state in accordance with Section 710:65-18-5.

(2) Ancillary services.

(3) Telecommunications nonrecurring charges, which means an amount billed for the installation, connection, charge or initiation of telecommunication services received by a customer.

(c)Transactions to which the tax is applicable. Telecommunications services include:

(1) The electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points.

(2) The transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance or routing as voice-over Internet protocol services or is classified by the Federal Communications Commission as enhanced or value added.

(d)Transactions to which the tax is not applicable. Telecommunications services do not include:

(1) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where the purchaser's primary purpose for the underlying transaction is the processed data or information.

(2) The installation or maintenance of wiring or equipment on a customer's premises.

(3) Tangible personal property.

(4) Advertising, including but not limited to directory advertising.

(5) Billing and collection services provided to third parties.

(6) Regulatory assessments and charges, including charges to fund the Oklahoma Universal Service Fund, the Oklahoma Lifeline Fund and the Oklahoma High Cost Fund Internet access services.

(7) If charges for taxable telecommunications services are aggregated with and not separately stated from charges for nontaxable services or products, the nontaxable charges will be subject to taxation unless the provider can reasonably identify charges not subject to the tax, charge or fee from the provider's books and records kept in the regular course of business; Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 U.S. C. 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 C.F.R. 20.3.

(8) Ancillary services.

(9) Digital products delivered electronically, including but not limited to, software, music video, reading materials or ring tones.

(e)Transactions exempted from the telecommunications levy. The following transactions are exempt from the telecommunications levy:

(1) Interstate and International "800 service".

(2) Interstate and International "900 service".

(3) Interstate and International "private communications service".

(4) Value-added non-voice services in which computer applications are used, other than for purposes of transmission, conveyance or routing, to act on the form, content, code or protocol of the information or data.

(5) Interstate and International telecommunication service which is:

(A) Rendered by a company for private use within its organization or

(B) Used, allocated, or distributed by a company to its affiliated group.

(6) Regulatory assessments and charges, including charges to fund the Oklahoma Universal Service Fund, the Oklahoma Lifeline Fund and the Oklahoma High Cost Fund.

(7) Telecommunications nonrecurring charges, including but not limited to the installation, connection, change or initiation of telecommunications services which are not associated with a retail consumer sale.

(f)Coin-operated telephone taxable. Gross receipts from a coin-operated telephone are subject to sales tax.

(g)Purchases of tangible personal property by persons providing telecommunications services. Except as otherwise set out in this paragraph, persons engaged in the business of providing telecommunications services are the consumers of tangible personal property used in providing those services. Sales of such tangible personal property to persons providing telecommunications services are taxable. However, sales of wireless telecommunications equipment to a wireless telecommunications vendor, who subsequently transfers the equipment to a customer for no charge or for a discounted charge, in connection with the customer's purchase of new or continued wireless telecommunications service, are exempt. 68 O.S. § 1357(26)

(h)Access charges billed to customer. Access charges billed to consumers of telecommunications services are taxable.

(i) Sales of telecommunications services shall be sourced as set out in Section 710:65-18-5.

(j) If charges for taxable telecommunications services are aggregated with and not separately stated from charges for nontaxable services or products, the nontaxable charges will be subject to taxation unless the provider can reasonably identify charges not subject to the tax, charge or fee from the provider's books and records kept in the regular course of business .

Okla. Admin. Code § 710:65-19-330

Added at 10 Ok Reg 1111, eff 2-23-93 (emergency); Added at 10 Ok Reg 3847, eff 7-12-93; Amended at 11 Ok Reg 3521, eff 6-26-94; Amended at 13 Ok Reg 3139, eff 7-11-96; Amended at 15 Ok Reg 2827, eff 6-25-98; Amended at 16 Ok Reg 2653, eff 6-25-99; Amended at 17 Ok Reg 2677, eff 6-25-00; Amended at 19 Ok Reg 1859, eff 6-13-02; Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 23 Ok Reg 2847, eff 6-25-06; Amended at 25 Ok Reg 2070, eff 7-1-08; Amended at 28 Ok Reg 1844, eff 6-25-11

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015