Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
GROSS RECEIPTS TAX RULES
Rule 006.05.06-005-GR-7 - SERVICES SUBJECT TO TAX - TELEPHONE TELECOMMUNICATIONS AND RELATED SERVICES
Universal Citation: AR Admin Rules 006.05.06-005-GR-7
Current through Register Vol. 49, No. 9, September, 2024
A. DEFINITIONS.
1. "Ancillary service" means a
service that is associated with or incidental to the provision of
"telecommunications services", including without limitation, detailed
telecommunications billing, directory assistance, vertical service, and voice
mail services.
2. "Conference
bridging service" means an ancillary service that links two (2) or more
participants of an audio or video conference call and may include the provision
of a telephone number. Conference bridging service does not include the
telecommunications service used to reach the conference bridge.
3. "Detailed telecommunications billing
service" means an ancillary service of separately stating information
pertaining to individual calls on a customer's billing statement.
4. "Directory assistance" means an ancillary
service of providing telephone number or address information.
5. "Fixed wireless service" means a
telecommunications service that provides radio communication between fixed
points.
6. "Mobile wireless
service" means a telecommunications service that is transmitted, conveyed, or
routed regardless of the technology used, whereby the origination or
termination points of the transmission, conveyance, or routing are not fixed,
including, by way of example only, telecommunications services that are
provided by a commercial mobile radio service provider.
7. "Paging service" means a
telecommunications service that provides transmission of coded radio signals
for the purpose of activating specific pagers. Such transmissions may include
messages or sounds.
8.
"Telecommunications service".
a.
Telecommunications service means the electronic transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals to a
point, or between or among points. Telecommunications service includes such
transmission, conveyance, or routing in which computer processing applications
are used to act on the form, code, or protocol of the content for purposes of
transmission, conveyance, or routing without regard to whether such service is
referred to as voice over internet protocol services or is classified by the
Federal Communications Commission as enhanced or value added.
Telecommunications services include, but are not limited to fixed wireless
service, mobile wireless service, paging service, and value-added nonvoice data
service.
b. Telecommunications
service does not include the following:
(1)
Data processing and information services that allow data to be generated,
acquired, stored, processed, or retrieved and delivered by an electronic
transmission to a purchaser where such purchaser's primary purpose for the
underlying transaction is the processed data or information;
(2) Installation or maintenance of wiring or
equipment on a customer's premises;
(3) Tangible personal property;
(4) Advertising, including but not limited to
directory advertising;
(5) Billing
and collection services provided to third parties;
(6) Internet access service;
(7) Radio and television audio and video
programming services, regardless of the medium, including the furnishing of
transmission, conveyance, and routing of such services by the programming
service provider. Radio and television audio and video programming services
include, but are not limited to, cable service as defined in
47
U.S.C. §
522(6), as in
effect on January 1, 2007, and audio and video programming services delivered
by commercial mobile radio service providers, as defined in
47
C.F.R. 20.3, as in effect on January 1,
2007;
(8) Ancillary services;
or
(9) A digital product delivered
electronically, including but not limited to software, music, video, reading
material, or a ring tone.
9. "Value-added nonvoice data service" means
a service that otherwise meets the definition of telecommunications services in
which computer processing applications are used to act on the form, content,
code, or protocol of the information or data primarily for a purpose other than
transmission, conveyance, or routing.
10. "Vertical service" means an ancillary
service that is offered in connection with one (1) or more telecommunications
services, which offers advanced calling features that allow customers to
identify callers and to manage multiple calls and call connections, including
conference bridging services
11.
"Voice mail service" means an ancillary service that enables the customer to
store, send, or receive recorded messages. Voice mail service does not include
any vertical services that the customer may be required to have in order to
utilize the voice mail service.
B. BUNDLED TRANSACTIONS. A bundled transaction is the retail sale of two (2) or more products, except real property and services to real property, where the products are otherwise distinct and identifiable and the products are sold for one non-itemized price. (See GR-93) In the case of a bundled transaction that includes a telecommunications service, ancillary service, internet access, or audio or video programming service the following rules will apply:
1. If the price is attributable to products
that are taxable and products that are nontaxable, the portion of the price
attributable to the nontaxable products is also subject to tax unless the
provider can identify, by reasonable and verifiable standards, the portion of
the products that are nontaxable from its books and records.
a. The books and records must be kept in the
regular course of business, and include books and records used for non-tax
purposes.
b. Books and records
include, but are not limited to, financial statements, general ledgers,
invoicing and billing systems and reports, and reports for regulatory tariffs
or other regulatory matters.
2. If the price is attributable to products
that are subject to tax at different tax rates, the total price is attributable
to the products subject to the highest tax rate unless the provider can
identify, by reasonable and verifiable standards, the portion of the price
attributable to the products subject to the lower tax rate from its books and
records.
a. The books and records must be kept
in the regular course of business, and include books and records used for
non-tax purposes.
b. Books and
records include, but are not limited to, financial statements, general ledgers,
invoicing and billing systems and reports, and reports for regulatory tariffs
or other regulatory matters.
3. The provisions of this section shall apply
unless superseded by federal law.
Ark. Code Ann. § 26-52-315
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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