Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-245 - Taxation of competitive telephone service, telecommunications service, and ancillary service

Current through Register Vol. 24-14, July 15, 2024
This rule identifies what constitutes competitive telephone
				services, telecommunications services, and ancillary services; how these
				products are taxed; and the statutes that apply for determining if the sale of
				these products are subject to taxation in Washington (sourcing and
				apportionment). The rule applies to tax periods commencing on or after July 1,
				2008. This rule is divided into three parts as follows:
* Part I: What are competitive telephone services,
				telecommunications services, and ancillary services?
* Part II: How are competitive telephone services,
				telecommunications services, and ancillary services taxed in Washington?
* Part III: When is the sale of competitive telephone services,
				telecommunications services, or ancillary services subject to taxation in
				Washington (sourcing and apportionment)?
Part I: What are competitive telephone services,
				telecommunications services, and ancillary services?
(101)
Introduction.
Washington
			 law imposes tax on the three following distinct products: Competitive telephone
			 service, telecommunications service, and ancillary service. Sub sections (102),
			 (103), and (104) of this section describe these three services. The statutes
			 for the 911 tax and the prepaid wireless 911 tax are not addressed in this rule
			 and are found in chapter 82.14B RCW, with the definitions found in
			 RCW
			 82.14B.020.
(102)
What is a competitive telephone
			 service?
A "competitive telephone service" means the providing by any
			 person of telecommunications equipment or apparatus, or service related to that
			 equipment or apparatus such as installation, repair, or maintenance services,
			 if the equipment or apparatus is of a type that can be provided by persons that
			 are not subject to regulation as telephone companies under
			 Title
			 80 RCW. See
			 RCW
			 82.04.065.
(103)
What is a telecommunications
			 service?
A "telecommunications service" means 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.
			 Telecommunications service includes such 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
			 without regard to whether such service is referred to as voice over internet
			 protocol services or is classified by the federal communications commission as
			 enhanced or value added. See
			 RCW
			 82.04.065.
(a)
What services are included within
			 the definition of telecommunications service?
Table A below provides a
			 nonexclusive list of services considered to be telecommunications services in
			 Washington.
Table A
Type of Service
Description
800 Service
A service that allows a caller to
dial a toll-free number without
incurring a charge for the call. The
service is typically marketed under the name "800," "855,"
						"866," "877," and "888" toll-free
calling, and any subsequent num-
bers designated by the federal
communications commission.
900 Service
An inbound toll service purchased
by a subscriber that allows the
subscriber's customers to call in to
the subscriber's prerecorded announcement or live service.
"900 service" does not include the
charge for: Collection services
provided by the seller of the tele-
communications services to the
subscriber or services or products
sold by the subscriber to the sub-
scriber's customer. The service is
typically marketed under the name
"900 service," and any subsequent
numbers designated by the federal
communications commission.
Fixed wireless service
A service that provides radio communication between fixed
						points.
Mobile telecommunications service
A commercial mobile radio service, as defined in
						Title
						47 C.F.R., Section 20.3 as in
						effect on June 1, 1999.
Mobile wireless service
A service that is transmitted, conveyed, or routed
						regardless of the technology used, whereby the origination and/or termination
						points of the transmission, conveyance, or routing are not fixed including, by
						way of example only, telecommunications services that are provided by a
						commercial mobile radio service provider.
Paging service
A service that provides transmission of coded radio
						signals, which may include messages or sounds, for the purpose of activating
						specific pagers.
Private communications service
A 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 the 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
						the channel or channels.
Value-added non-voice data service
A service that otherwise meets the definition of
						telecommunications services in which computer processing applications are used
						to act on the form, content, code, or protocol of the information or data
						primarily for a purpose other than transmission, conveyance, or routing.
Prepaid calling service
Means the right to access exclusively telecommunications
						services, which must be paid for in advance and which enable 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.
Prepaid telephone calling service
Means the right to purchase exclusively telecommunications
						services that must be paid for in advance, that enables the origination of
						calls using an access number, authorization code, or both, whether manually or
						electronically dialed, if the remaining amount of units of service that have
						been prepaid is known by the provider of the prepaid service on a continuous
						basis.
Prepaid wireless calling service
Means a service that provides the right to use mobile
						wireless service as well as other nontelecommunications services including the
						download of digital products delivered electronically, content, and ancillary
						services, which must be paid for in advance and that is sold in predetermined
						units or dollars of which the number declines with use in a known amount.
(b)
What services or items are excluded from the definition of
			 telecommunications service?
Table B below provides a list of services or
			 items not considered to be telecom-munications services in Washington.
Table B
Item
Description
Data processing and information services
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 such purchaser's primary purpose
						for the underlying transaction is the processed data or information.
Tangible personal property
Tangible personal property.
Advertising
Advertising services including, but not limited to,
						directory advertising.
Billing and collection
Billing and collection services provided to third
						parties.
Internet access
Internet access. See
						RCW
						82.04.297.
Audio and video programming
Radio and television audio and video programming services,
						regardless of the medium, including furnishing of transmission, conveyance, and
						routing of such services by the programming service provider. Radio and
						television audio and video programming services include, but are not limited
						to, cable service as defined in 47 U.S.C. Section 522(6) and audio and video
						programming services delivered by commercial mobile radio service providers, as
						defined in
						Title
						47 C.F.R., Section 20.3.
Ancillary services
Ancillary services. See subsection (104) of this
						section.
Digital products
Digital products delivered electronically including, but
						not limited to, music, video, reading materials, or ring tones.
Software
Software delivered electronically.