How did this November 1986 Texas letter apply the coming rate increase to advance-billed, dated, and undated telephone charges?

Plain-English summary

This November 1986 Texas letter said advance December billings that included January telephone service should be apportioned between the old and new rates. Intrastate long-distance calls could be tied to their actual dates and taxed at the appropriate rate.

For bulk-billed items that could not be tied to a specific date, the letter originally said the higher rate applied when billed on or after January 1, 1987.

That last answer was later corrected. STAR record 8612L0779A01 granted telephone companies a one-month grace period and moved the higher-rate billing date for undated bulk items to February 1, 1987.

What this means for you

The allocation and actual-call-date portions explain the original transition method, but the January 1 rule for undated bulk items should be read with the later February 1 correction.

Common questions

How were December bills covering January service handled? Apportioned.

How were dated calls handled? Using the rate appropriate to the call date.

What date did this letter give for undated bulk items? January 1, 1987.

Was that date later corrected? Yes, to February 1, 1987 in STAR 8612L0779A01.

Citations and references

• The letter cited no numbered statute or Comptroller rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8611L0772G13

Original ruling text

November 21, 1986

Dear ***:

Thank you for your recent letter regarding telecommunication billing
cycles and the coming tax increase.

Since most customers are billed in advance of service, it is possible
for a customer to be billed in December while the lower rate is in
effect for services to be received in January. An example of this
would be charges for metro service, or other enhanced services, call
waiting, call forwarding, etc.. Therefore, December billings which
include in part charges for January should be apportioned.

Bulked-billed items, such as excess directory assistance calls, that
cannot be tied to a specific date will be subject to the higher tax
rate if billed on or after January 1, 1987. Of course, telephone
companies can tell when intrastate long distance calls have been made
and the appropriate tax rate should be applied to these calls.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write us at the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division