Press Releases

Interstate Telephone Calls Subject to 3% Sales Tax After April 1

Tax begins with April 2001 billings from the interstate telecommunications service provider

March 28, 2001

BATON ROUGE -Louisiana citizens are reminded that a 3% Louisiana sales tax on most interstate calls will appear on their telephone bills beginning with the first billing they receive during the month of April, according to Department of Revenue Secretary Cynthia Bridges.

"Act 22 of the 2000 Regular Session of the Louisiana Legislature levied the new tax," Bridges says. She adds that all interstate telecommunications service resellers are required to be registered with the Louisiana Department of Revenue to collect and remit the tax. As defined in the law, the tax is to be collected only on "the amounts paid for interstate telecommunication services which either originate or terminate in this state and which are charged to a service address in this state, regardless of where such amounts are billed or paid." Bridges says this includes nearly all interstate calls.

Bridges says telecommunication services first became subject to a 3% state sales tax in 1990 when the tax was levied on local service and intrastate toll charges. Act 22 extended that tax to apply to most interstate charges and other forms of telecommunications that are defined in the law, including cellular services, mobile radio or paging services, or any other form of mobile one-way or two-way communications. The tax does not apply to telecommunication services provided by coin-operated telephones that are available to the public.

For additional information about the 3% sales tax on interstate calls or how to register to collect and remit the state''s general sales tax, contact the Sales Tax Division of the Louisiana Department of Revenue at (225) 925-7356.