Form 25818 - North Dakota Telecommunications Gross Receipts Tax

Form 25818 - North Dakota Telecommunications Gross Receipts Tax - 2000 Page 2

2000 TELECOMMUNICATIONS GROSS RECEIPTS TAX

Important Information

• Only retail sales of telecommunications service are subject to the gross receipts tax.

Sales to another telecommunications carrier for resale are not subject to the tax if that carrier

submits a resale certificate certifying that carrier holds a North Dakota sales and use tax

permit.

• Sales of telecommunications service to a hospital, hotel, motel, or similar place of

temporary accommodation are retail sales and are subject to the gross receipts tax.

Those entities are no longer classified as telecommunications carriers.

• By January 15 of each year, telecommunications carriers are required to report to the

Tax Commissioner the names and addresses of carriers from which they received

intercarrier telecommunications revenue in the preceding year. (Effective for tax years

2000 and 2001 only.)

• By January 15 of each year, telecommunications carriers are required to report to the

Tax Commissioner the name and address of each company that owned a pay telephone

served by the reporting telecommunications carrier in the preceding year. (Effective for

tax years 2000 and 2001 only.

• No tax statement will be issued for a tax liability of less than $5.00 but a return must be

filed.

• The State Board of Equalization has taken the position that Internet Service Providers

(ISP’s) are not telecommunications carriers for purposes of the Telecommunications

Gross Receipts Tax.

• Sales of telecommunications service to ISP’s are retail sales and are subject to the

Telecommunications Gross Receipts Tax.

Form 25818 - North Dakota Telecommunications Gross Receipts Tax - 2000 Page 2