Washington – Telephone Tax Changes

SALT Report 2756 – The Washington Department of Revenue issued a special notice regarding recent legislation that will change the way the telecommunications industry is required to collect and remit taxes in the State. The notice states that on August 1, 2013 the following changes will take effect:

WTAP and TRS Taxes Expire

Telephone service providers will stop collecting the WTAP tax of  $0.14 per switched access line, and the TRS tax of $0.17 per switched access line.

Local Telephone Service Retail Sales Tax Exemption Expires

Once this exemption expires, telephone service providers will be required to collect retail sales tax on local telephone service beginning with the first billing period that occurs on or after August 1, 2013.  Telephone service providers will continue to collect state and local E911 taxes on local telephone service charges.

Coin-Operated Telephone Service Retail Sales Tax Exemption Expires

Once this exemption expires, telephone service providers will be required to collect retail sales tax on coin-operated telephone service.

Additionally, the notice states that the new laws will also affect prepaid wireless service effective January 1, 2014.  The Department will release information regarding those changes as it becomes available.

For Further Information

Washington Department of Revenue – Special Notice