Note: The Tax Class definitions provided below are intended to serve as a general guideline when assigning tax classes to Products and Usage Types in the IDI platform. They are based on our interpretation of current tax and regulatory law, and are subject to change. The definitions include examples of the types of products and services that would commonly be associated with each tax class, but are not intended to be all-inclusive. In determining an appropriate tax class, providers should have a thorough understanding of their service offerings and applicable tax and regulatory law. IDI assumes no liability for customer reliance on default tax classes. Each user assumes full responsibility for assignment of an appropriate tax class for all products and usage types.
No Tax Class Assigned formerly (Do Not Tax) - This tax class should only be selected if you wish to suppress all federal, state and local taxes and surcharges for a specific product or usage type.
Local - Charges for basic local exchange telephone service (i.e. dial tone), including flat rate and measured service,and extended area service. Excludes Subscriber Line Charges and activation charges.
Toll - Charges for long distance service via the Public Switched Telephone Network (PSTN), including monthly recurring charges, minimum charges and activation charges. Excludes VoIP telephony.
800 - Services that allow a caller to dial a toll-free number without incurring a charge for the call. Also includes 855, 866, 877, and 888 toll-free calling, including all usage, activation, monthly minimums, and related charges.
800 Custom - The toll free subscriber (business) or provider factors these taxes into their costs or billing.
900 - Inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's pre-recorded announcement or live service.
Private Line - A telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching lines, stations, and any other associated services provided in connection therewith. Private line service bypasses the PSTN.
Private Line Custom - Telecom tax class for dedicated voice/data line services.
Internet - A service that enables users to access content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of a package of services offered to consumers. It does not include telecommunications services, except to the extent such services are purchased, used, or sold by a provider of Internet access to provide Internet access. Internet access typically includes such services as e-mail, including voice-capable e-mail and instant messaging. However, internet access does not include voice or similar service using internet protocol (VoIP), sale or lease of equipment, or subscription charges for database access or premium content. Activation and one time charges for internet access are included.
Equipment - Separately stated charges for sale or lease of tangible personal property or equipment. (Ex. Phones, modems, routers.)
Installation - Separately stated charges related to physical installation/repair of equipment.
Wireless Access/Airtime - Includes recurring monthly access charges and plan charges for unlimited or fixed amounts of minutes. Also includes roamer charges, and charges for separately stated air time minutes and overage charges.
Land Line Activation - Charges for activation or termination of a basic local telephone service.
VoIP - Charges for Voice Over Internet Protocol telecommunications service that is interconnected with the public switched telephone network.
VoIP (Non-Interconnected) - A VoIP service that does not provide access to the Public Switched Telephone Network.
VoIP Custom - Custom version of the standard VoIP tax class that providers can assign to product catalog items to be billed as a tax.
Comp Data Proc Serv. (CT only) - Charges for computer and data processing services provided to customers residing in Connecticut.
Finance Charge - Charges for late payment of an invoice, or bounced check charges.
Voice Mail - A service that enables the customer to store, send, or receive recorded messages.
Features - Also known as vertical services, these are advanced calling features, which are ancillary to the telecommunications service being provided, that allow customers to identify callers and to manage multiple calls and call connections. Examples include Call Forwarding, Call Waiting, Call ID, and Three Way Calling. Such features are often included free of charge but may also be charged separately.
Tele-conf. (excl. call charges) - A service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. This service excludes call charges. This may be the case when participants use their own telecommunications service to connect to the conference bridge, rather than dialing a toll-free number. However, in cases where both the telecommunications service (perhaps provided via a toll-free number) and the conference bridge are billed by the same provider, this tax class would be applicable only to separately stated charges for the conference bridge. Separately stated telecommunications charges (generally 800 service or long distance) would be taxed based on the tax class selected for those charges.
Tele-conf. (incl. call charges) - A service that links two or more participants of an audio or video conference call and includes telecommunications charges. A toll free number may be provided, or the provider may contact each participant directly. However, in this scenario the cost of the conference bridge and the telecommunications charge are billed together as a single charge. When charges for the conference bridge and for the telecommunications are separately billed, this tax class should not be used.
SLC - The Subscriber Line Charge (SLC) is a charge which is expressed in dollars and cents per line, that local telephone companies may charge to customers each month to recover some of the costs of telephone lines connected to a home or business. This charge is also referred to as the End User Common Line Charge (EUCL), FCC Line Charge, and the Customer Access Line Charge (CALC). It is regulated and capped by the FCC, but the FCC does not require carriers to charge it. It is not a tax. The government receives no money from this charge. The money is paid to local telephone companies.
PICC - Like the SLC Charge, the Primary Interexchange Carrier Charge (PICC) is a charge which local telephone companies are authorized to collect from long distance companies on a per-line basis to compensate them for the use of their network to originate and terminate long distance calls. It is assessed on a monthly basis. Most long distance carriers pass this cost through to their end users, although it can be billed directly by the local phone company if the end user has not pre-selected a long distance carrier. It is regulated and capped by the FCC, but the FCC does not require carriers to charge it. It is not a tax. The government receives no money from this charge. The money is paid to local telephone companies. As of July 1, 2000, carriers are no longer permitted to collect the PICC charge on residential lines or single line businesses.
Wireless Activation/Termination - Charges for activation or termination of a wireless account.
Wireless Features - Vertical wireless features such as three way calling, call ID, call waiting, three way calling, etc.
Wireless VoiceMail - Charges for voice mail on a wireless device.
Ringtone Download - Charges for ringtones downloaded to a wireless device.
Digital Download - Charges for electronic files such as music, games or video downloaded to a wireless device.
Content Subscription - Charges for premium content, usually accessed via internet connection, that require an additional charge beyond the basic fee for internet access (such as a charge for access to a premium web site
Messaging One Way - Charges for one-way messaging or paging.
Messaging Two Way - Charges for two-way interactive text-messaging.
Warranty/Maintenance Charge - Recurring monthly charge that entitles the subscriber to free or discounted repair or replacement of telephone equipment in the event of loss or damage.
Service Change Charge - An administrative charge for a change in the level of telephone service.
Shipping Charge - A charge to the subscriber for shipment of phones and accessories or related equipment.
Prepaid Wireless Calling Service - Prepaid wireless calling service generally means a telecommunication service that provides the right to use a mobile wireless service as well as other non-telecommunications services, including the download of a digital product delivered electronically and content and ancillary services, which must be paid for in advance and that is sold in predetermined units of dollars of which the number declines with use in a known amount.
Emergency Concierge Service - A service that provides subscriber with on demand connection to an agent with capability to conference in emergency contacts, access personal medical information, connect subscriber to a live, registered nurse or dispatch 9-1-1 emergency service.
Citizen Letters - Custom tax class. Reserved.
Equipment Rental/Lease - A one time or recurring charge for rental or lease of tangible personal property (not real property). Examples include lease of telecommunications equipment, routers, servers, etc. Assumes that no sales tax is paid when lessor acquires the tangible personal property to be leased. Also assumes ownership does not transfer to lessee at end of lease, and that property can’t be purchased for a nominal value at end of lease term.
Recycle Equipment - Charges for the sale of electronic equipment subject to a recycling fee. Assign this tax class at the retail product level to covered equipment so the applicable recycling fee can be assessed when the product is sold in California.
Printed Bill Charge - A fee charged for issuing a printed bill to wireless customers.
Software as a Service (SaaS) - Recurring or usage-based charges for remote access to software that is hosted on the provider’s infrastructure. In a SaaS offering, tangible media such as physical disks or tapes are not provided. Software is merely accessed by the subscriber and is not downloaded.
Platform as a Service (PaaS) - Recurring or usage-based charges for remote access to a computing platform of tools and services on which software developers can design, create, and test applications and services. Typically, PaaS offerings include operating system, programming language execution environment, database, and web server. The customer controls the software deployment and configuration settings.
Infrastructure as a Service (IaaS) - Recurring or usage-based charges for remote access to physical or virtual machines that can be scaled based on a customer’s needs. Typical IaaS offerings may include access to servers, storage, computing capacity, load balancers, network components, etc. Cloud providers typically bill IaaS services on a utility computing basis: cost reflects the amount of resources allocated and consumed by the subscriber.
Web Site Hosting - One time, recurring, or usage-based charges to a customer for services related to hosting an internet web site.
Software - Electronic Delivery - One time or recurring charge for sale of canned (non-custom) software that is downloaded to a device electronically or loaded onto a device with no transfer of tangible media to the purchaser. Includes charges for software renewals and updates, and mandatory software maintenance agreements that include software updates.
Managed IT Service - One time, recurring, or usage-based charges for remote management of a customer’s IT infrastructure and/or communications networks. Includes management, optimization, and/or monitoring of servers, data storage, routers, ports, modems, switches, and other IT or network elements. Excludes repair charges.
Training - Charges for on-line or on-site training services. Excludes manuals and other training materials provided.
Equipment Repair - Charges for providing repair service on equipment including switches, modems, PBX, trunks, routers, storage units, etc.
Consulting Services - Charges for providing consulting services to a customer.
Co-Location Space Rental - Charges for rental of space at a co-location facility. In most states, these are generally assumed to be a rental of real property.
Co-Location Power - Recurring or usage-based fees for electrical power provided at a co-location facility.
Data Hosting - One time, recurring, or usage-based charges for data hosting. Data hosting services typically involve storing a customer's electronic data on the service provider's remote servers.
Re-Stocking Fee - An amount charged by a retailer in association with the return of a purchased item. Such fees are charged to recoup the costs of restocking an item. It is not a charge for use of the property.
Software License - A separate charge for software license when the software is delivered electronically (i.e. no disk or other media is provided).
Information Service (Personal) - A service that provides information which is personal or individual in nature to the recipient, and which is not generally available to others.
Information Service (General) - A service that provides general or specialized news or information to the recipient which is not individual or personal in nature. Common examples of general information services are newsletters, stock reports, research services, sports scores, electronic databases, etc.
Non-Enumerated Service - A service that is not specifically itemized as a taxable service. In most states, only specifically identified services are subject to tax. Therefore, non-enumerated services would generally not be taxed in most states. Conversely, a handful of states tax most services. In these states, services are generally considered taxable, unless a specific exemption is provided. In those states, even non-enumerated services are generally subject to tax.
Operator Assistance - A charge for an operator assisted call.
Technical Support - A service that provides subscribers with technical support for various telecom and related services either over the phone or on-site.
Streaming Video - Video programming that is streamed over the internet.
Cable TV - Television programming services provided by a cable television operator.
Dark Fiber Lease - Charges for lease of dark fiber .
Security/Alarm Monitoring - Charges for provision of a surveillance/security monitoring service.
Print Media - This is applicable to yellow page advertising. Assign at the product level. This tax class is subject to all applicable State, County, Regional, and Local Sales Taxes as defined by law.