Ga. Comp. R. & Regs. R. 560-12-2-.24 - Communication Services

(1) Communication Services. The tax applies to charges made for local exchange telephone services, for cellular telephone services, and for the amount of the guaranteed charges for semi-public coin-box telephone services. The tax does not apply to other communication services. Installation and service establishment charges are not taxable if separately stated on the customer's bill. However, the tax applies to all tangible personal property purchased or used in this State in connection with rendering interstate or intrastate communication (telephone) services.
(2) Cellular Telephone Services.
(a) Taxable Charges:
1. The monthly access charge (charge for the right to access the cellular system) in the amount as set forth on each cellular telephone provider's statement or bill to its customer or subscriber. However, should the monthly charge include both access and a stated allowed airtime usage in a combined or bundled amount, tax will be due on the entire combined or bundled amount, unless, on the bill or statement, the amount is broken out as between the various charges. When unbundling the taxable amount, the minimum ascribed to monthly access must be no less than the minimum monthly access charge made by the cellular telephone provider to the general public for access to the cellular system (when no calls are placed by the customer and no airtime is utilized by the customer) that is in effect during the billing period.
2. All vertical services for special features, including, but not limited to, call waiting, call forwarding, speed calling, three-way calling.
3. The daily access portion of the "roaming" charge made by the serving cellular provider serving the area within this State in which the customer call is placed ("serving cellular provider") to the billing cellular provider, for customer access to the serving cellular provider's service area.
(b) Non Taxable Charges:
1. Airtime usage, if listed separately on the customer's bill or statement.
2. Voice mail services.
(c) Situs for Determining Tax Rates. The situs for determining tax rates for taxable cellular telephone services is the customer's garage or billing address. However, if both addresses are outside this State, then the situs is the location of the Serving Cellular Provider's serving switch. For billing roamer access charges, calls are considered to be placed and shall be taxed at the tax rate prevalent at the situs of the Serving Cellular Provider's serving switch. In the event a cellular telephone provider has a cellular system that traverses state lines and has cells and customers located in states traversed by such system, the situs, for the purpose of collection and remittance of taxes for taxable cellular services, as between the states traversed by such system, shall be the customer's garage or billing address.
(d) Interconnection Services. With respect to and for that portion of taxes otherwise subject to collection from a cellular telephone provider by its local exchange telephone carrier(s), for the provision of access or interconnection services that are resold by any such cellular provider, a cellular provider may either (i) take a credit, equal to the taxes collected by its local exchange telephone carrier(s) on access or interconnection services, against taxes due by the cellular provider to the Department, or (ii) execute a valid Certificate of Exemption (Form ST-5) for exemption from payment of taxes on access or interconnection services that are resold by the cellular provider. No credit may be taken for that portion of taxes collected from any cellular telephone provider by its local exchange telephone carrier(s) for the provision of local telephone measured usage services. (No credit or refund shall be given by the Department to any cellular telephone provider for taxes collected from any cellular telephone provider on the provision of local exchange telephone services to such cellular telephone provider by its local exchange telephone carrier prior to December 1, 1992.)

Notes

Ga. Comp. R. & Regs. R. 560-12-2-.24
O.C.G.A. Secs. 48-2-12, 48-8-2, 48-8-95.
Original Rule entitled "Communication Services" adopted. F. and eff. June 30, 1965. Amended: F. Jan. 13, 1975; eff. Feb. 2, 1975. Repealed: New Rule of same title adopted. F. Dec. 7, 1994; eff. Dec. 27, 1994.

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