Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Court Decisions > M > MCI Communications Services, Inc. v. California Department of Tax and Fee Administration … (2019)

Sales And Use Tax Court Decisions

A    B    C    D    E    F    G    H    I    J    K    L    M    N    O    P    R    S    T    U    V    W    Y

---

M

---

MCI Communications Services, Inc. v. California Department of Tax and Fee Administration … (2019)

---

The Tax Exclusion of Revenue and Taxation Code Section 6016.5 Applies Only to Fully Installed and Completed Telephone Lines

A provider of telecommunications services and products filed a claim for refund on use tax paid on the telephone cables, conduit, and telephone poles that it purchased. It argued that these items were excluded from the definition of tangible personal property under Revenue and Taxation Code section 6016.5, as "telephone and telegraph lines, electrical transmission and distribution lines, and the poles, towers, or conduit by which they are supported or in which they are contained," and therefore its purchases of these items were not subject to sales and use taxes.

The court of appeal held in favor of the CDTFA that the tax exclusion in section 6016.5 applies only to fully installed and completed telephone and telegraph lines, and not to the pre-installation component parts of such lines. MCI Communications Services, Inc. v. California Department of Tax and Fee Administration (2019) 28 Cal.App.5th 635.