TELEPHONE EXCISE TAX
Telephone Excise Tax -- Definitions and Administrative Provisions
(1) The Oregon telephone excise tax does not apply to:
(a) Federal, state and municipal government bodies or public corporations as defined in section (2).
(b) Counties and political subdivisions.
(c) Certain federally chartered corporations specifically exempt from state excise taxes by federal law.
Examples: Federal Deposit Insurance Corp., Federal Savings and Loan Insurance Corp., federal banks and banking associations created under the Farm Credit System and exempt under Title 12, U.S. Code ¦¦2023, 2077, 2098 or 2134.
(d) Federally recognized Native-American Tribes, and tribal members who live within federally recognized Indian country and are enrolled members of the tribe with sovereignty over that Indian country.
(e) Foreign government offices and representatives that are exempt from state taxation by treaty provisions.
(f) Regional housing authorities exempt from all state taxes and assessments by ORS 456.225.
(g) The connection between utilities that is used to provide service. This includes the connection between radio common carriers and the interexchange carrier as well as between two or more utilities.
(2) For purposes of this rule, "public corporation" means a corporation formed by a state or local government authority for the public's benefit or for a public purpose.
(3) Any other agency, organization or person claiming an exemption is required to identify the authority for its claim to a provider. If a provider is unable to determine the status of a subscriber the Department of Revenue will determine whether the subscriber is exempt.
(4) "Provider" means any corporation, individual or group of individuals providing telecommunication access to the 9-1-1- Emergency Reporting System.
(a) A radio common carrier that leases telephone exchange access lines from a wire telephone company is a provider if the carrier sells that access to its customers. Access for this purpose includes (but is not limited to) traditional telephone services ("POTS"), cellular telephone service, personal communications system service (PCS), personal communications network service (PCN), cable/broadband service, private branch exchanges (PBX), and mobile radio common carriers. A carrier that has access to the 9-1-1 Emergency Reporting System and does not resell the access is not considered to be a provider; instead it is considered to be a subscriber and must pay the tax.
(b) A cellular telephone service company is a provider that provides access to 9-1-1 services through various switching mechanisms between cellular radio sites and exchanges access services.
(5) The return required by ORS 401.792 must be signed by the taxpayer or an authorized agent and made under penalties for false swearing. Returns received after the due date are subject to delinquency charges as provided in ORS Chapter 305, 314 and 316 the same as if the tax were a tax imposed upon or measured by net income. Returns received by mail are accepted without imposition of such charges if postmarked before midnight of the due date.
(6) Related providers may request permission from the department to file one telephone excise tax return per quarter.
(7) Except as provided in subsection (b) of this section, if a provider elects to pay the tax based on the amount actually collected as payment for exchange access services during the quarter and the provider receives only a partial payment from a subscriber:
(a) The provider must apply the payment proportionately to the Oregon telephone excise tax and to all other charges appearing on the subscriber's bill.
(b) If the provider determines that the only unpaid portion of a subscriber's bill for all telephone services is in the amount of the Oregon telephone excise tax, the provider is not required to apportion the payment and may apply the payment first to all other charges appearing on the subscriber's bill.
(8) The provider must submit with its quarterly return to the department a list of all those subscribers that refuse to pay their Oregon telephone excise tax in whole or part. Such lists must include the name, address, telephone or service number of the subscriber, and the amount of Oregon excise tax owing. Any amount so reported to the department must be written off by the provider and the collection will be enforced by the department.
(9) When a provider proceeds to write off, charge off or cancel an uncollectible account, any amount of Oregon telephone excise tax unpaid on that account must be reported to the department as provided in section (8) of this rule.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 401.794
Hist.: 2-11-82(Temp); 5-5-82; 12-31-84, Renumbered from 150-401.000 Note (Or. Laws 1981, Ch. 533) to 150-401.000 Note (Or. Laws 1981, Ch. 533)-(A); 12-31-85; RD 7-1994, f. 12-15-94, cert. ef. 12-30-94; RD 5-1995, f. 12-29-95, cert. ef. 12-31-95, Renumbered from 150-401.000 Note (Or. Laws 1981, Ch. 533); Renumbered to 150-401.794, REV 11-2006, f. 12-27-06, cert. ef. 1-1-07