Tax Type
Retail Sales and Use Tax
Description
Hotel charges for telephone calls
Topic
Taxability of Persons and Transactions
Date Issued
12-28-1984
December 28, 1984
Re: Ruling Request: Sales and Use
Dear ********************
This will reply to your letter of September 26, 1984 concerning applicability of sales and use tax to telephone calls.
Facts
Your inn charges its guests for local telephone calls. You own your equipment and rent lines and service from C&P telephone company.
Determination
Pursuant to § 58-441.2(d) of the Code of Virginia, sales and use tag applies to the sale or charge for any room, lodging or accommodations furnished to transients by any hotel, motel, inn or other similar place. Any additional charges made in connection with the rental of a room or other lodging or accommodations are deemed to be a part of the charge for the room and are subject to the tax. This would include charges for local telephone calls, but would not include charges by the telephone company for long-distance telephone calls which are merely passed on by the inn. However, if the inn were to add any amount to the long distance telephone charge, such amount would also be subject to the tax.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner