NOTE: The following Notice has been replaced with the Notice dated June 15, 1999, to all providers of electricity, domestic water, natural gas, telegraph, telephone, and cellular telecommunication services. Click here to read the June 15, 1999 Notice.
IMPORTANT NOTICE
TO PROVIDERS OF DIGITAL CELLULAR TELEPHONE SERVICES
The purpose of this Notice is to clarify which state taxes apply to analog and digital cellular telephone services.
If you provide digital cellular telephone services which are authorized by the Federal Communications Commission under sections other than Title 47, Section 22.900 et seq., Code of Federal Regulations, you should collect and remit the 6.7% utility tax instead of the 4% cellular radio telecommunication services tax ("cellular services tax").
The cellular services tax applies only to cellular radio services authorized by the Federal Communications Commission as set forth in Title 47, Section 22.900 et seq., Code of Federal Regulations (commonly referred to as analog cellular telephone services). Receipts from providing cellular telephone services authorized under other sections of the Code of Federal Regulations such as Title 47, Section 24.1 et seq., constitute receipts from providing "telephone services" and are subject to the 6.7% utility tax.
If you provide digital cellular telephone services which are subject to the utility tax, you should contact the Alabama Department of Revenue to obtain the forms necessary to register to collect the utility tax. The 6.7% utility tax should be collected from your customers and reported and paid monthly on forms provided by the Department of Revenue.
If you should have any questions concerning this Notice, you may contact the Sales, Use & Business Tax Division at (334)242-1490.
Alabama Department of Revenue
Sales, Use & Business Tax Division
P.O. Box 327710
Montgomery, AL 36132-7710
Fax No. (334)242-8916