Ezel / Tax Rulings / TX
TX 8811L0907A01 Sales and/or Use Tax (State,Local,MTA) 1988-11-28

Were Texas cellular calls made by visiting out-of-state users taxable when billing went through their home-state cellular provider?

Short answer: No under the stated facts. The calls were not billed to a Texas telephone number, billing address, or service address, so Texas sales tax did not apply.

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This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

Out-of-state cellular users accessed a Texas system to make intrastate or interstate calls. They used their own home telephone number and area code, and the local cellular company in their home state billed the calls.

Because the charges were not billed to a Texas telephone number, billing address, or service address, the Comptroller said they were not subject to Texas sales tax.

Common questions

Did the answer cover both intrastate and interstate calls? Yes under the described visiting-user billing facts.

What fact controlled the result? The lack of a Texas telephone number, billing address, or service address.

Were the calls billed by the Texas provider? No. Billing went through the visitor's home-state cellular company.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

November 28, 1988

Dear ****:

I just want to take a minute to confirm our phone conversation about
cellular phone services purchased by visitors from out of state.

As I understand it, cellular users who are visiting from out of state may
access your system to make calls. These individuals use their own telephone
number and area code for billing purposes. The visitor may make intra-state, or
inter-state calls which are billed through the local cellular company in his
home state. The question is, are these calls subject to Texas Sales Tax?

Because you say that the calls are not billed to a telephone number,
billing, or service address in Texas, the charges are not subject to Texas
Sales Tax.

This opinion is rendered based on the facts you presented. Other facts,
though similar, may yield different results.

Please feel free to call or write me any time. You can reach me toll
free at
1-800-531-5441.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division

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