Telecommunications Companies That Must Register With the New York Secretary of State

Most telecommunications companies that provide the following communications services are required to register New York Public Service Commission:

  • Voice calling & telephone services
  • Wireless communications
  • Prepaid communications 
  • VoIP (voice over internet protocol) 
  • Text messaging 
  • Internet access service

Registration must be completed before offering any telecom services within the state.

The Registration Process

  • The NY Commission will grant qualified telecom companies a Certificate of Public Convenience and Necessity (CPCN).
    • There are different types for facilities-based providers and resellers. 
  • The Petition for a CPCN is a fairly basic 12-question form.
    • It covers everything from contact details to types of services offered and your company must be incorporated before completing the form.
  • In addition, resellers must also submit a tariff.
    • This is completed online and requires obtaining an account with the state. While CPCNs don’t have a formal waiting period, there is a mandatory minimum period of 90 days between when a tariff is filed and when it becomes effective.
  • Either type of CPCN will place a company under the jurisdiction of the state’s Public Utility Commission (PCU).
    • This is the body that’s primarily responsible for overseeing statewide telecom tax collection.

CPCN Renewal for New York Telecommunications Companies.

New York doesn’t require telecommunications companies to renew their CPCNs, but you must file regular reports in lieu of renewing. These reports are fairly easy as long as a company is properly collecting telecom taxes.

If a company ceases to operate in the state, the CPCN must be formally surrendered. This is completed by:

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  1. Emailing a cover letter to the New York Secretary of State (SOS),
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2. Explaining that the company no longer provides telecom services in the state

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3. Demonstrating that the company no longer has customers in the state

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4. Requesting to relinquish all rights associated with the CPCN and wishes to surrender the CPCN.

Companies that have had tariffs in place must also attach a Cancellation Supplement for each tariff when surrendering a CPCN. Cancellation Supplement forms can be found in the state’s Electronic Tariff System, which is the system in which tariff registration is initially completed.

Required Telecom Taxes by the New York Public Utility Commission

The New York Public Utility Commission requires telecommunications companies to collect and remit a variety of taxes. These include:

  • E911 Surcharge
  • Public safety communications surcharge, 
  • New York State gross revenue tax surcharge
  • Local number portability surcharge

Taxes in NYC vs the Rest of the State

Telecom companies that operate in New York City’s five boroughs (Bronx, Brooklyn, Manhattan, Queens, and Staten Island) must also collect an MTA tax surcharge that helps support the city’s Mass Transit Authority. The MTA surcharge ranges from 0.1277% to 0.73% depending on what services are provided. 

Companies should also be aware that many statewide telecom tax rates are higher in New York City. For example, the E911 surcharge imposed for wireline services is $0.35 throughout much of Upstate New York but increases to $1.00 in the city.

FAStek can be a trusted partner for managing all your compliance obligations

How to File a Voluntary Disclosure Agreement in New York

Telecom companies that operate in New York City’s five boroughs (Bronx, Brooklyn, Manhattan, Queens, and Staten Island) must also collect an MTA tax surcharge that helps support the city’s Mass Transit Authority. The MTA surcharge ranges from 0.1277% to 0.73% depending on what services are provided. 

Companies should also be aware that many statewide telecom tax rates are higher in New York City. For example, the E911 surcharge imposed for wireline services is $0.35 throughout much of Upstate New York but increases to $1.00 in the city.

Telecom Tax Exemptions in New York

Telecommunications companies might qualify for a variety of exemptions, depending on the services offered and areas served. Because there are so many different state and local telecom taxes, there isn’t a single way to apply for all potential exemptions.

In order to take full advantage of all available telecom tax exemptions, companies should work closely with an experienced telecommunications tax consultant who’s familiar with New York. A qualified consultant will know how to apply for all relevant exemptions and they can assist with other aspects of regulatory and tax compliance.

Conquer New York Telecom Tax Requirements Once and For All

For help registering, reporting, or otherwise navigating New York telecommunications tax issues, contact the experts at FAStek. Our team of knowledgeable agents has worked with many telecommunications clients in New York, and we have the expertise to help you Conquer communications tax once and for all