Idaho Admin. Code r. 35.01.02.031 - RADIO AND TELECOMMUNICATIONS EQUIPMENT AND LAND MOBILE RADIO SERVICE OF SYSTEMS

Sections 63-3612, 63-3621, Idaho Code

01. General Rule and Scope. The sale, rental or lease of communication equipment and land mobile radio systems are taxable. This rule describes sales and use tax treatment of telephone terminal equipment or services and land mobile radio systems or service. (3-31-22)

02. Telephone Terminal Equipment and Services. (3-31-22)

a. The sale, rental, or lease of telephone terminal equipment is taxable. Telephone terminal equipment includes, but is not limited to, desk sets, PBX systems, automated answering equipment, cellular telephones and mobile radio telephones. (3-31-22)

b. Fees for access charges, toll charges, call waiting, call forward, message recording, and similar charges to customers are not taxable. (3-31-22)

03. Land Mobile Radio Systems or Services. Land mobile radio systems and services, defined by 47 CFR § 90.7, are a regularly interacting group of base, mobile and associated control and fixed relay stations intended to provide land mobile radio communications service over a single area of operation. (3-31-22)

a. The sale, rental, or lease of terminal equipment or equipment located on the customer's premises is taxable. The equipment includes handsets, mobile telephones, antennae, and like or similar property. (3-31-22)

b. Separately stated fees for the installation of terminal equipment or equipment that will be located on the customer's premises or is not taxable. (3-31-22)

c. Separately stated fees for access charges, toll charges, and similar charges are not taxable. (3-31-22)

04. Provider Equipment. The owner or provider of telephone or land mobile radio systems and services must pay a sales or use tax on any tangible personal property purchased for the use of the business. This includes but is not limited to; equipment or tangible personal property used in receiving or transmitting, excluding the equipment referenced in Subsection 031.02.a., office supplies, repair equipment, accounting or customer billing equipment, and equipment or devices or other property used to maintain or repair land mobile radio systems or services. (3-31-22)

05. Drop-In Equipment and Inside Wiring. The installation of the drop-in equipment and inside wiring useful or necessary to bring telephonic or radio communication transmissions from a source outside the premises of the user, for example, telephone pole or transmitter, to terminal equipment within the user's premises is an improvement to real property and anyone performing the installation is a contractor. Drop-in equipment and inside wiring includes, but is not limited to, wires, plugs, sockets, receptacles, connectors and similar items. See Rule 012 of these rules for tax treatment of contractors. (3-31-22)

06. Wireless Telecommunications Equipment. A retailer may give away wireless telecommunications equipment as an incentive to start or continue a contract for telecommunications service. Such a use is exempt from tax pursuant to Section 63-3621 (2), Idaho Code. For the purposes of this exemption "telecommunications service" means the transmission of two-way interactive switched signs, signals, writing, images, sounds, messages, data, or other information that is offered to the public for compensation. "Telecommunication service" does not include the one-way transmission to subscribers of video programming, or other programming service, and subscriber interaction, if any, necessary for the selection of such video programming or other programming service, surveying, internet service, alarm monitoring service, or the provision of radio paging, mobile radio telecommunication services, answering services (including computerized or otherwise automated answering or voice message services). (3-31-22)

Notes

Idaho Admin. Code r. 35.01.02.031