You owe telecommunications tax if
You are engaged in the business activity of providing telecommunication
services to consumers within the City of Mesa. The tax is due to the City
whether or not you added transaction privilege tax to the charge for the
Tax rate on telecommunications services
The city tax rate is 1.75% of the telecommunications income. (Note: The Mesa
City Tax rate increased to 1.75% effective 07/01/2006)
Collection of tax
You may choose to charge the tax separately on each sale, or include
transaction privilege tax in your price. If you over charge any tax to your
customers, you must remit the excess tax to the city.
If your price includes transaction privilege tax, you can compute how much
of the total price is transaction privilege tax. You may deduct the total
city, state, and county transaction privilege taxes from your gross
What are telecommunications services?
- Telecommunications services shall include:
- Two-way voice, sound, and/or video communication over a communications
- One-way voice, sound, and/or video transmission or relay over a
- Facsimile transmissions.
- Providing relay or repeater service.
- Providing computer interface services over a communications channel.
- Time-sharing activities with a computer accomplished through the use of a
What is telecommunications income?
Gross income from the business activity of providing telecommunication
services to consumers within this City shall include:
- All fees for connection to a telecommunication system.
- Toll charges, charges for transmissions, and charges for other
telecommunication services; provided that such charges relate to
transmissions originating in this City and terminating in this State.
- Fees charged for access to or subscription to or membership in a
telecommunication system or network.
- Charges for monitoring services relating to a security or burglar alarm
system located within the city where such system transmits or receives
signals or data over a communications channel.
What telecommunication activity is exempt from transaction privilege tax?
- Resale telecommunication services
Gross income from sales of telecommunication services to another provider of
telecommunication services for the purpose of providing the purchaser's
customers with such service shall be exempt from the tax; provided, however,
that such purchaser is properly licensed by the City to engage in such
- Interstate transmissions
Charges by a provider of telecommunication services for transmissions
originating in the City and terminating outside the State are exempt from
- Prepaid calling cards
Telecommunications services provided with prepaid cards are exempt from the
tax under the telecommunication classification. The sale of the card itself
is taxable under the retail classification.
- Mobile Equipment
In cases where the customer is being provided telecommunication services to
receiving/transmission equipment designed to be mobile in nature (for
example, mobile telephones, portable hand-held two-way radios, paging
.ces, etc.), the provider shall determine whether such customers are
"within this city" as follows:
- by the billing address of the customer, provided that such address is a
permanent residence or business location of the consumer within the State.
- in all other cases, the business location of the telecommunications