OPM: Telecommunications Services Companies' Tax Liability

Telecommunications Services Companies' Tax Liability


Program Description

 

Staff of the Office of Policy and Management determines the annual personal property tax liability of six telecommunications services companies that are subject to taxation under §12-80a and §12-80b of the Connecticut General Statutes (CGS).


CGS Section 12-80a allows telecommunications services companies to have their personal property assessed by the state, rather than by the assessor of the city or town in which the property is located. These companies issue personal property tax payments directly to municipalities.


For the assessment year commencing October 1, 2016, the personal property tax liabilities of the following companies are determined under these statutes:

  • Southern New England Telephone Company (including the assets of SNET    America, and the assets of the former Woodbury Telephone Company);
  • AT&T (including the assets of AT&T Corp. - Connecticut, AT&T Corp. - Interstate    Division (Regulated), AT&T Network Supply, LLC, AT&T Global Network Services LLC, and Teleport Communications America, LLC.);
  • Sprint Communications Company LP;
  • Verizon New York Inc.;
  • Level 3 Communications;
  • Century Link Communications LLC (formerly Qwest Communications Company, LLC)


Under the provisions of CGS §12-80a, these telecommunication service providers report to the Office of Policy and Management the depreciated value of the taxable personal property they own as of the October first assessment date. The reported values, a copy of which these companies send to the appropriate town, reflect the full extent of depreciation allowed for purposes of Connecticut's corporation business tax. The Office of Policy and Management determines the 70% assessment of a company's total depreciated value of personal property and calculates the company's tax at 47 mills. There is a statutory allocation for taxes payable to certain lesser taxing districts.


If a company uses any of the property it reports under CGS §12-80a to render both telecommunications service subject to tax under CGS Chapter 219 and certified competitive video service subject to tax under that chapter, a portion of its property is taxable and a portion is tax exempt. Pursuant to CGS §12-80b, the relationship between the taxpayer’s gross receipts tax liability for rendering both of these services determines the taxable portion of such dual-use property. The Southern New England Telephone Company is the only entity currently subject to taxation under CGS §12-80a, to which the provisions of CGS §12-80b apply.


By March 1 of each year, the Office of Policy and Management notifies each of these companies of the personal property tax they must pay to municipalities on or before the first day of April in that year.


In FY 2016-2017, the total amount of tax payable to Connecticut’s municipalities by these telecommunications service providers is $11,241,299.04. This represents an increase from the total of $11,060,361.65 paid in Fiscal Year 2015-16 for the assessment year commencing October 1, 2015.


NOTE: The Connecticut General Assembly passed Public Act 10-171 which was signed into law on June 8, 2010. Under the provisions of section 3 of this Act a mobile wireless telecommunications company can no longer report the value of its taxable personal property to the Office of Policy and Management. Beginning with the October 1, 2010 assessment year, and for each year thereafter, all personal property of a mobile wireless telecommunications company that was subject to taxation under section 12-80a as of October 1, 2009, becomes subject to taxation by the municipality in which the property is located. The following companies, eligible under section 12-80a as of October 1, 2009, must now file a separate personal property declaration with the assessor of the Connecticut town in which the company's property is located as of October 1, 2010:

Cellco Partnership (dba Verizon Wireless)

Sprint Nextel (dba Nextel Communications of Mid-Atlantic, Inc.)

Sprint Spectrum LP

 

Document Specifications

Format: Microsoft Excel for Windows

File Type: (*.xls)
File size: 335KB (uncompressed)
Click Here to Download:
Telecommunication Service Company Tax Liability

Note: Each fiscal year is separated into individual spreadsheets.

 

Contact Information:

Patrick J. Sullivan phone (860) 418-6406 - fax (860) 418-6493 - e-mail patrick.j.sullivan@ct.gov





Content Last Modified on 4/28/2017 10:56:40 AM