What Texas tax rates applied in 1987 to pager sales, airtime, leases, connection fees, voice retrieval, protection, repairs, and maintenance?

Plain-English summary

The Comptroller listed a 7.5% rate for an outright pager purchase. It listed a 7% rate for each of the following charges:

• airtime provided to customers who owned their pagers;
• a combined equipment lease and service;
• a one-time connection fee for new customers;
• voice-retrieval service resembling an answering machine, with no equipment issued to the customer;
• monthly or annual loss, theft, and damage protection for leased pagers;
• repair charges rebilled after an outside company repaired a customer's pager; and
• optional monthly or annual maintenance under which the provider repaired a purchased pager without a separate repair charge.

What this means for you

The historical letter treated the outright equipment sale differently from the listed pager-related services and arrangements, but it assigned a tax rate to every item presented. Its rates reflect 1987 law and are not current-rate guidance.

Common questions

What rate did the letter list for an outright pager purchase? 7.5%.

What rate did it list for airtime, leases, and connection fees? 7%.

Were voice retrieval, loss protection, repairs, and maintenance also listed at 7%? Yes.

Citations and references

• No statute or rule number is cited in the ruling text.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8710L0840B07

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 8, 1987

Dear ****:

Thank you for your letter of September 1, 1987, concerning the taxability
on the following:

1. Beeper Purchase - This is an out-right purchase of the pager by the
   customer. 7 1/2 percent

2. Air Time - This is the service we provide to customers who own their
   own pagers. (We run their beeper service through our computer.) 7 percent

3. Lease - This is strictly a lease of equipment and service. 7 percent

4. Connect Fee - This is a one time fee we charge to all of our new
   customers when they start up their account. 7 percent

5. VRS (Voice Retrieval Service) - This is a service we lease to our
   customers. It works like an answering machine but the customer has no actual
   equipment issued to him. 7 percent

6. L/T/D/ (Loss/Theft/Damage Protection) - This is a fee we collect
   either annually or monthly to cover a leased pager in the event of loss, theft
   or damage. It is like an insurance, but there is no insurance company involved.
   Also, no monies are refunded, regardless of whether a claim is made or not. 7
   percent

7. Repair Charges - If a customer elects to waive L/T/D or has purchased
   his pager and it needs repair, we send it to the company that does our repairs
   and we charge the customer the repair charges. 7 percent

8. Maintenance - When a customer purchases his pager out right, he has
   the option of also purchasing maintenance. We collect either an annual or
   monthly fee. If the pager needs repairs we repair it at no charge to the
   customer. 7 percent

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

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

Sincerely,
Eddie C. Washington
Tax Policy Division