Ezel / Tax Rulings / TX
TX 9108L1127A10 Sales and/or Use Tax (State,Local,MTA) 1991-08-20

When did live operator answering services become taxable in Texas, and were automated answering and voicemail services already taxable?

Short answer: Live operator answering services were nontaxable when the letter was issued but became taxable October 1, 1991. Automated answering and voicemail were already taxable telecommunications services and remained taxable.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. This page describes a specific October 1, 1991 effective-date change and is historical; confirm current telecommunications-tax law before applying it. 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

When the letter was issued on August 20, 1991, a live answering service using a human operator to receive and relay messages or screen calls was not taxable. Legislation enacted during the August special session made that service taxable effective October 1, 1991.

Automated answering services and voicemail systems were already taxable telecommunications services and remained taxable. The letter cited Tax Code Section 151.0103 and Rule 3.344.

What this means for you

The page records a 1991 transition, not a current-law survey. At that time, the distinction between human intervention and electronic transmission disappeared for live answering services on the stated effective date.

Common questions

Were live answering services taxable on August 20, 1991? No.

When did they become taxable? October 1, 1991.

Were automated answering and voicemail taxable before then? Yes.

Citations and references

  • Texas Tax Code Section 151.0103 — telecommunications services
  • 34 Tex. Admin. Code Rule 3.344 — telecommunications services

Source

Original ruling text

August 20, 1991

Dear *****:

Thank you for your recent letter, in which you requested a general
statement of which answering services are taxable, and which are
not.

Under current law, "live" or "human - intervention" answering
services (in which a human operator receives and relays telephone
messages, or screens calls) are not subject to tax.

Effective October 1, 1991, live telephone answering services will
become subject to tax. A provider of this service will be required
to obtain a sales tax permit and collect the tax. This is one of
the changes the legislature made during the first special session
in August of this year.

"Telecommunications services", including automated answering
services and voice mail systems, have been and will continue to be
subject to tax. This has been our interpretation of the legislature's
definition of taxable "telecommunications services", which refers
specifically to the "electronic or electrical transmission . . . of
sounds . . . ", Tax Code Section 151.0103.

For your information, I have enclosed our current Rule 3.344 on
telecommunications services.

This opinion is based on the facts presented. Different facts,
though similar, might lead to different answers. If you have
further questions, feel free to write or call me at 1- 800- 252- 5555,
ext. 3-3889.

Sincerely,

John Christian
Attorney
Tax Administration

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