Ezel / Tax Rulings / TX
TX 8907L0947F04 Sales and/or Use Tax (State,Local,MTA) 1989-07-28

Which location determined the local tax on a paging service's telecommunications transmission?

Short answer: The point where the paging provider began its own transmission. Local tax was due based on the location where it received the incoming call and transmitted the paging signal.

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This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A caller used a regular telephone to activate a paging signal, and the provider then transmitted that signal from its tower. The Comptroller said local telecommunications tax was collected based on where the provider's transmission originated.

Because the paging provider's service began where it received the incoming call, local tax was due based on that receiving-and-transmitting point.

Common questions

Did the caller's original telephone location necessarily control? No. The letter focused on where the paging provider began its own transmission.

What location controlled under the stated facts? The point where the provider received the incoming call and transmitted the paging signal.

Source

Original ruling text

July 28, 1989

Dear ****:

I just want to take a minute to respond to your question about the
application of local tax to paging services.

You said that a person wishing to page another will make a call on
his regular telephone to activate the paging signal. The paging
signal is then transmitted from the tower in Lubbock to the pager.
Your client's services do not begin until that telephone signal is
received.

Local tax on telecommunications services are collected based on
the location where the transmission originates. In this case,
your client begins their transmissions from the point where they
receive the in-coming calls. Local tax will be due based on that
point.

Feel free to call or write me if you have questions. You can
reach me by calling toll free 800/531-5441 or FAX (512) 475-0900.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division

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