IDAPA 35.01.02.031 — RADIO AND TELECOMMUNICATIONS EQUIPMENT AND LAND MOBILE RADIO SERVICE

OF SYSTEMS (RULE 031).
Sections 63-3612, 63-3621, Idaho Code
01.
General Rule and Scope. The sale, rental or lease of communication equipment and land mobile
radio systems are taxable. This rule describes sales and use tax treatment of telephone terminal equipment or services
and land mobile radio systems or service.
(3-31-22)
02.
Telephone Terminal Equipment and Services.
(3-31-22)
a.
The sale, rental, or lease of telephone terminal equipment is taxable. Telephone terminal equipment
includes, but is not limited to, desk sets, PBX systems, automated answering equipment, cellular telephones and
mobile radio telephones.
(3-31-22)
b.
Fees for access charges, toll charges, call waiting, call forward, message recording, and similar
charges to customers are not taxable.
(3-31-22)
03.
Land Mobile Radio Systems or Services. Land mobile radio systems and services, defined by 47
CFR § 90.7, are a regularly interacting group of base, mobile and associated control and fixed relay stations intended
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 033
Page 26
to provide land mobile radio communications service over a single area of operation.
(3-31-22)
a.
The sale, rental, or lease of terminal equipment or equipment located on the customer's premises is
taxable. The equipment includes handsets, mobile telephones, antennae, and like or similar property.
(3-31-22)
b.
Separately stated fees for the installation of terminal equipment or equipment that will be located
on the customer's premises or is not taxable.
(3-31-22)
c.
Separately stated fees for access charges, toll charges, and similar charges are not taxable.
(3-31-22)
04.
Provider Equipment. The owner or provider of telephone or land mobile radio systems and
services must pay a sales or use tax on any tangible personal property purchased for the use of the business. This
includes but is not limited to; equipment or tangible personal property used in receiving or transmitting, excluding the
equipment referenced in Subsection 031.02.a., office supplies, repair equipment, accounting or customer billing
equipment, and equipment or devices or other property used to maintain or repair land mobile radio systems or
services.
(3-31-22)
05.
Drop-In Equipment and Inside Wiring. The installation of the drop-in equipment and inside
wiring useful or necessary to bring telephonic or radio communication transmissions from a source outside the
premises of the user, for example, telephone pole or transmitter, to terminal equipment within the user's premises is
an improvement to real property and anyone performing the installation is a contractor. Drop-in equipment and inside
wiring includes, but is not limited to, wires, plugs, sockets, receptacles, connectors and similar items. See Rule 012 of
these rules for tax treatment of contractors.
(3-31-22)
06.
Wireless
Telecommunications
Equipment. A
retailer
may
give
away
wireless
telecommunications equipment as an incentive to start or continue a contract for telecommunications service. Such a
use is exempt from tax pursuant to Section 63-3621(2), Idaho Code. For the purposes of this exemption
"telecommunications service" means the transmission of two-way interactive switched signs, signals, writing,
images, sounds, messages, data, or other information that is offered to the public for compensation.
"Telecommunication service" does not include the one-way transmission to subscribers of video programming, or
other programming service, and subscriber interaction, if any, necessary for the selection of such video programming
or other programming service, surveying, internet service, alarm monitoring service, or the provision of radio paging,
mobile radio telecommunication services, answering services (including computerized or otherwise automated
answering or voice message services).
(3-31-22)