City and County of Denver, Colorado

TAX GUIDE

Topic No. 76

TELEPHONE AND TELECOMMUNICATION SERVICES

 

The DRMC imposes a sales/use tax on the following telephone and telecommunication services if the service originates in Denver and is charged to a telephone number or an account located within the City:

 

A.    Local telephone service including zone calls. (A zone call is a charge for a specific local call.)

B.    INTRAstate long distance telephone service.

C.    Cellular telephone service, including airtime.

D.    Beeper/pager service, including airtime.

E.     Two way radio communications airtime.

 

The DRMC does not subject monthly usage charges to a sales or use tax when the charges represent varying amounts billed for a subscriber’s actual use of interstate telecommunication services.

 

 

EXAMPLE

 

Mary, attending college in Denver, places long distance calls to her brother in Cleveland, Ohio and her aunt in Aspen, Colorado. Both calls are charged to her telephone at her Denver sorority. The billing she receives has three distinct charges: local service, intrastate charges and charges passed through from an interstate carrier. The charge for the call to her brother in Ohio is not subject to tax, as this is a charge for INTERstate telephone service. The local service charge and the charge for the INTRAstate call to her aunt are subject to tax.

 

 

RELATED TAX GUIDE TOPIC

Telecommunications Tax

 

 

* DRMC Section 53-25(3). Imposition of tax.

* DRMC Section 53-96(3). Imposition of tax.

 

 

 

THE ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF THE RELEVANT DENVER TAX LAW FOR THIS INDUSTRY OR BUSINESS SEGMENT. IT IS NOT INTENDED FOR LEGAL PURPOSES TO BE SUBSTITUTED FOR THE FULL TEXT OF THE DRMC AND APPLICABLE RULES AND REGULATIONS.

 

11/98