Wireline services, except coin-operated calls, are taxable. Residential local telephone service and toll calls are not subject to the sales tax, but sales to commercial customers are taxable. Illinois Illinois imposes an excise tax known as the Illinois Telecommunications Excise Tax. The tax rate equals 5 percent and applies to most telecommunications services, including an allocated portion of interstate and international services. All wireline services, except receipts for coin-operated calls, are taxable.
Wireless services are also taxable.
E-mail and Internet access are usually exempt. However, if bills separately state charges for these services, they are taxable. Television and video programming services are exempt from tax. Miscellaneous services, except packet-switching, are also subject to tax. Michigan Michigan imposes a 6 percent sales tax on a limited range of telecommunications services.