Telecommunications Companies That Must Register with the Public Utility Commission of Texas
Telecom companies must register with the Public Utility Commission of Texas. This includes:
- Automatic Dial Announcing Devices (ADAD)
- Competitive Local Exchange Carriers (CLEC)
- Incumbent Local Exchange Carriers (ILEC)
- Pay Telephone Service Providers (PTSP)
- State-Issued Certificate of Franchise Authority (SICFA)
- Interexchange Carriers (IXC) and Prepaid Calling and Other Uncertificated Non-dominant Carriers (PPC)
Every area has specific permits and applications based on the service as defined. All telecommunications companies must be approved prior to use.
The Registration Process
Each entity has its own registration process:
- ADAD has a series of applications and forms.
- Permit holders must also subscribe to the Texas and National Do Not Call lists.
- CLEC has two applications:
- One for the Certificate of Operating Authority (COA) and a Service Provider Certificate of Operating Authority (SPCOA). A tariff or price sheet must be filed prior to beginning service in Control Number 42242. This is for taxable communications services and 911 fees.
- An ILEC application:
- introduce new or modified rates or terms for local taxable telecommunications services for entities currently holding a CCN.
- IXC and PPC companies dealing with telephone prepaid calling cards or long-distance telecommunications services must register with the Commission before the entity starts service.
- The application along with four copies should be sent to Central Records of the Public Utility Commission of Texas. A tariff or price sheet filing is required prior to commencing service.
- An application for the PTSP
- This is required along with four copies is required, along with the payphones by July 31st of each year.
Required Telecom Taxes by the Public Utility Commission of Texas
- CLEC has an annual reporting requirement
- An annual report for the CLEC must be filed by April 30th of each year
- Quarterly reports are required for ILEC companies in addition to general and information tariffs
- An annual report for the IXC and PPC is due by April 30th of each year
All Other telecommunications services:
- Within Texas: state sales tax and local sales tax based on location
- Interstate long-distance taxable communications services: state sales tax
- Mobile telecommunications services: subject to state sales and local sales tax based on area of main use
Renewal for Texas Telecommunications Companies
Permits for ADAD must be renewed annually with three copies of the current year’s project number to the Filing Clerk at the Public Utility Commission of Texas. PTSP annual re-registration is due by July 31st of each year.
Telecom Tax Exemptions in Texas
Internet access services up to the first $25 per month on accounts.
How to File a Voluntary Disclosure Agreement in Texas
The Texas Comptroller of Public Accounts provides a Voluntary Disclosure Agreement (VDA) to those who have underpaid or have unpaid taxes due to avoid fines, penalties and interest.
- Must have fee or tax liability separate from taxes due by the International Fuel Tax Agreement (IFTA).
- Must have not had any communications from the Comptroller regarding liability.
- Must have not been notified of an upcoming examination or audit.
Tax reports are reviewed four years from the date of application and must provide:
- Business entity type
- Description of business and activities
- Date company started business in home state and in Texas
- Tax types for VDA
- Statement certifying the business has not been contacted by Comptroller for VDA tax types
- Statement certifying the business has or hasn’t collected or remitted tax
- Request for payment agreement
- Estimate of taxes owed
An examiner reviews the submission and VDA must be signed by both parties.
A Fast-Track VDA is available. Fees due must be calculated at the time of application and be completed via web.
Conquer Texas Telecom Tax Requirements Once and For All
If you need assistance registering, reporting, or managing your Texas telecom tax, contact the experts at FAStek today.
Our experienced agents have worked with many telecommunications companies in Texas, and have the expertise to help you conquer communications tax once and for all.