Are closed-caption decoders and wireless phone jack extenders used by deaf people exempt from Texas sales tax?

Subject

Telephone/Signaling/Flashing Equipment/Wireless Phone Jack Extenders Used By Deaf People

Plain-English summary

Someone emailed the Comptroller's office asking two related questions: are closed-caption decoding devices for televisions taxable when used by a deaf person, and what about wireless phone jack extenders used with a phone flasher (a device that flashes a light to signal an incoming call)?

The Comptroller's answer was straightforward: both items are exempt from sales tax when used by a deaf person. Rather than paying tax at the register, the buyer can give the vendor an exemption certificate instead. That certificate needs to state that the items are being used in connection with a television or telephone flashing equipment by a deaf person.

What this means for you

Deaf and hard-of-hearing consumers

If you're buying a closed-caption decoder for a TV, or a wireless phone jack extender to use with a phone flasher, you can avoid paying Texas sales tax on these items by giving the seller an exemption certificate that states the equipment is being used in connection with a television or telephone flashing equipment by a deaf person, instead of paying tax at checkout.

Retailers selling assistive/adaptive equipment

If a customer presents a properly worded exemption certificate for a closed-caption decoder or a wireless phone jack extender used with a phone flasher, you can accept the certificate in place of collecting sales tax on that sale.

Accountants and tax professionals

This letter confirms the exempt treatment applies specifically to closed-caption decoders for televisions and wireless phone jack extenders used with phone flashing equipment, and that the exemption is administered through an exemption certificate rather than an automatic point-of-sale exclusion.

Common questions

Q: Is a closed-caption decoder for a television taxable in Texas?
A: No. The letter states it is exempt when used by a deaf person.

Q: What about a wireless phone jack extender used with a phone flasher?
A: Also exempt when used by a deaf person, according to this letter.

Q: How does the buyer claim the exemption?
A: An exemption certificate may be issued to the vendor instead of paying tax on these items.

Q: What does the exemption certificate need to say?
A: It should state the items are being used in connection with a television or telephone flashing equipment by a deaf person.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9611825L

Original ruling text

November 13, 1996

Dear ***:

I received your e-mail regarding the taxability of closed-caption decoding
devices for televsions used by the deaf. You also asked about the taxability
of wireless phone jack extenders used in conjunction with a phone flasher.

A closed-caption decoder and a wireless phone jack extender are exempt when
used by a deaf person. An exemption certificate may be issued to a vendor
instead of paying tax on these items. The exemption certificate should state
the items are being used in connection with a television or telephone
flashing equipment by a deaf person.

I hope this information is helpful. If you have any questions, please do not
hesitate to contact me. I can be reached by phone at 1-800-531-5441,
extension 5-0037, or by e-mail at [email protected].

Sincerely,

Lindey Osborne
Tax Policy Division