US Sales and Telecom Tax Information in zoom App

Zoom evaluates its tax collection and remittance obligations on a regular basis, as do many technology companies. Zoom, which offers new technologies through new types of technologies, is a complex and evolving area when it comes to state telecom taxes.

It is possible for the state, local, and municipal governments to impose sales or telecom taxes on goods and services, including telephone services (i.e., telecom taxes). As a result, the federal, state and local governments may impose regulatory charges on providers of certain communication or telecommunications services, including interconnected VoIP services such as Zoom Phone.

The Zoom team continues to review the products and services it sells, as well as the nature and extent of its operations in different jurisdictions. As a result of such reviews, Zoom will make your taxes more compliant from time to time in order to remain in compliance with all tax regulations and government regulations.

Please send your exemption certificates to our tax experts for review. They will review all exemption certificates. You will receive a refund or credit for any applicable taxes that are eligible for exemption, as soon as we receive your exemption certificate.

Please feel free to mention “Tax” in your chat with us if you have any additional questions.

 

Alaska

It is the responsibility of Zoom to collect and remit the local sales tax in applicable boroughs and cities in Alaska. All residential or business customers who purchase hardware and Zoom conferencing services, including software and streaming services, are subject to the Alaska Remote Sellers Sales Tax, which is imposed on personal and business customers who live, work, or own a residence within any of the 30+ Alaska cities and boroughs that have adopted it. It is important to note that the rate of tax imposed by each city varies. You can find more information on the Alaska Remote Seller Sales Tax on the website of the Alaska Remote Seller Sales Tax.

Several Alaskan localities have allowed for certain Alaskan businesses to apply for tax exempt status under the Alaska Remote Seller Sales Tax Code. In order to determine whether an exemption applies to your city and borough, please consult the municipal code for that area.

California

Throughout California, Zoom is required to collect the California Utility User Tax (UUT) and the California Communication User Tax (CUT) in the counties and cities that are applicable.

As a result of reviewing the UUT and CUT requirements, Zoom has concluded that these taxes should be charged to our customers in the sale of Zoom Phone and most of our conferencing services.

The sales tax is levied by the local government on residential and business customers who purchase services that include communication services where the sold to address is located within one of the 150+ jurisdictions that impose a UUT or CUT.

In most cities, the tax rate applied to communications services will range from 0.5% to 11%, depending on the city. As California law does not allow for any exemptions from taxes imposed by the State that customers can claim directly against these taxes, unless they can demonstrate that the imposition of the taxes would be prohibited by a federal or state statute, the Constitution of the United States, or the Constitution of California.

I recommend that you check out the California City Finance website for more information about the UUT/CUT program. In addition, you can refer to the Excel spreadsheet which is hosted and maintained by the California City Finance website for general information about the California UUT/CUT tax rates.

Illinois

When residents or small business customers purchase Zoom Phone services with an address within Illinois, Zoom collects the state of Illinois’s telecommunications sales tax as well as the Illinois Telecommunications Infrastructure Maintenance Fee (“TIMF”). The State of Illinois recognizes that the state, federal, and local governments, as well as state universities are exempted from the Illinois Telecommunications Marketing Framework.

Maine

The Maine Service Provider Tax is collected by Zoom from all residential and business customers who purchase Zoom Phone services with a sold to address in Maine. Medical institutions, education institutions, government institutions, religious institutions, and child-related organizations are exempt from the payment of the tax on service providers in the State of Maine.

Maryland

Regardless of the fact that Zoom collects the Maryland state sales tax on applicable products sold to addresses within Maryland, due to legislation clarified by the Maryland Comptroller, Zoom collects the Maryland state sales tax from users of its products. There may be some products and services offered by Zoom that are not subject to the new tax law. A number of businesses may request tax exempt status from the Maryland Sales Tax Code, which recognizes the possibility of such a request. If you would like to learn more, please visit the website of the Maryland State Comptroller.

Prince George’s County

Zoom collects the county sales tax on its communication services in Prince George’s County. In Prince George’s County, this tax is levied on all residential and business customers who purchase communications services from a provider with a billing address in the county.

During the period of this tax, all conferencing services, regardless of whether they are audio or video, as well as all Zoom Phone products, but not Zoom Phone Pro (formerly referred to as BYOC), will be subject to this tax. Due to the fact that this is a sales tax, any valid Maryland sales tax exemption will be extended so that the exemption may be applied to these taxes.

New Hampshire

Upon purchase of Zoom Phone services offered by Zoom in New Hampshire, Zoom charges New Hampshire Communications Service Tax (“CST”) to all residential and business customers with a New Hampshire-based sold-to address.

There is a state law that recognizes federal, state and political subdivisions and agencies of the State of New Hampshire as exempt from the New Hampshire CST.

New York

The NY Tax Laws Sections 186-E and 186-C, respectively, require Zoom to collect the utility excise tax and the Metropolitan Transportation Surcharge (MTA). Business and residential customers purchasing telecommunications services will be subject to the following:

• In the event the address sold to is within New York State, then the NYS excise tax will apply; and
• If the address sold to is within the Metropolitan Commuter Transportation District (MCTD), the Metropolitan Transportation Surcharge (MTA) will be charged. New York, Bronx, Kings, Queens, Richmond, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester comprise the Metropolitan Statistical Area of Metropolitan New York.

Zoom Phone offers all Zoom Phone products, except Zoom Phone Pro (formerly known as BYOC), audio conferencing, and SIP trunk, which are the types of telecommunication services that are applicable to these taxes. According to the New York State utility excise tax regulations, there is no tax exemption offered by the state unless the customer can prove that the imposition of the taxes would violate a federal or state statute or the Constitution of either the United States or the State of New York.

New York City

In addition to selling Zoom Phones and audio and video conferencing products, Zoom also collects the New York City Utility Excise Tax. It is the responsibility of all residential and business customers to be aware of these taxes, which are imposed on them every time their communication services are shopped towards a New York City residential or business address, which includes the five boroughs of Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. This change will not affect anyone outside of this area.

A tax exemption is not provided by the New York City Utility Tax, except for customers who can demonstrate that the imposition of the New York City Utility Tax could violate any federal or state statutes, Constitutional provisions of the United States, or Constitutional provisions of the State of New York.

Virginia

It is the responsibility of Zoom to collect Virginia Communications Sales Tax (“CST”) for all Zoom Phone products, except for Zoom Phone Pro (previously known as BYOC) . All Zoom Phone products will be subject to a commission when purchased by a residential or business customer whose address falls within the state of Virginia at the time of purchase.

Zoom will be remitting the CST collected to the State of Virginia, which will go towards the Virginia Relay Center, which provides a telephone relay service for hearing impaired individuals. In addition, the state will support other programs related to such issues throughout the state.

All forms previously distributed by the Commonwealth of Virginia, political subdivisions of the Commonwealth, and agencies or instrumentalities of the federal government—as well as those produced by any subdivision of the Commonwealth and any subdivision of the Commonwealth—will also be extended to the CST. Nevertheless, Virginia customers will not be able to claim sales tax exemption from the CST on sales tax exemption forms provided by the state. It should be noted that the exemption from the CST is very narrow and can only be considered if you purchase Zoom Phone services for resale or if you are an Internet access service provider.