Was a computerized service that called patients or clients to remind them of appointments taxable when it sent customers only a list confirming completed calls?

Plain-English summary

A computer called doctors' or lawyers' patients and clients to remind them of upcoming appointments. The provider sent each customer a list of completed calls but exchanged no other written information.

The Comptroller taxed the total charge as a telecommunications service under Rule 3.344. After obtaining a permit, or while its application was pending, the provider could issue resale certificates for printed materials transferred to customers. It paid tax on other materials, supplies, and equipment used in the service.

What this means for you

The letter classified the service by its automated telephone transmission, not by the administrative purpose of confirming appointments. The transferred call list received separate resale treatment from the provider's other inputs.

Common questions

Was the computerized reminder service taxable? Yes.

How was it classified? As a telecommunications service.

Could printed call lists be bought for resale? Yes, when transferred to customers as part of the service.

Citations and references

• 34 Tex. Admin. Code Rule 3.344 — telecommunications services

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9108L1129F13

Original ruling text

August 20, 1991

Dear **:

Thank you for your recent letter, in which you requested our
ruling on the taxability of your service. As I understand it,
you will be verifying appointments for doctors, lawyers, etc.,
using a computer. The computer will call by telephone and
remind patients or clients of their upcoming appointments.
You will send to your customers a list of patients or clients
who were called during a specified period, thereby confirming
your work efforts. No other written information will be exchanged.

The total charge for your service is subject to tax as a
telecommunications service. Enclosed for your information is Rule
3.344 on telecommunications services. Under separate cover, I
have transmitted a sales tax permit application and information.

Once permitted (or while your permit application is pending with
this office) you may issue a resale certificate to purchase, tax
free, printed materials that you will transfer to your customers
as part of your service. You are responsible for paying tax on
other materials, supplies and equipment you use to perform the
service.

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