Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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S

495.0000 SALE

Annotation 495.0465.750

(a) IN GENERAL—DEFINITION

495.0465.750 Telecommunication Devices for the Deaf. The charges by a public utility for telecommunication devices for the deaf ("TDD") to the Deaf Equipment Acquisition Fund Trust ("Trust") are not subject to sales tax. The Public Utilities Code section 2881 provides that the commission shall establish a rate recovery mechanism to allow the telephone corporation to recover costs as they are incurred under this section. There is no implication that telephone corporations are to sell the equipment to any other person. What is contemplated is that telephone corporations should recoup the costs of furnishing the equipment, on a tariff basis acceptable to the Commission, and that the Trust is to reimburse the telephone company for the sales tax cost to the telephone company in acquiring the TDD equipment. The telephone company is the consumer of the TDD equipment and retains title, although capital charges are charged to the Trust. 4/5/88.