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Published on Tuesday, September 3, 2013

Sales tax now being collected on all residential telephone service

As we reported in our Final Bulletin, the Legislature passed a telecommunications bill with significant impacts to cities. The bill, 2E2SHB 1971, eliminated the sales tax exemption for all residential phone service beginning August 1, 2013. This change is expected to generate approximately $5 million per year for cities and counties. In addition, it addresses the issues raised in the 2011 Sprint Spectrum v. Washington State Department of Revenue case, which may have resulted in cities and counties being required to issue an estimated $250 million in sales tax refunds to telephone service providers.

Categories: Budget & finance