CITY UTILITY TAX NOT APPLICABLE TO FIXED CHARGES RELATED TO LONG-DISTANCE TELEPHONE SERVICES -

The New York City Tax Appeals Tribunal upheld an Administrative Law Judge determination that income from fixed charges that were imposed by a long-distance telephone service provider each month whether or not a customer made any long-distance calls were not subject to the New York City utility tax because they related to transactions that “originat[ed] or consummated outside the territorial limits” of New York City. Matter of U.S. Sprint Communications Company, LP, TAT(H)14-12(UT) et al. (N.Y.C. Tax App. Trib., Apr. 3, 2018).

Facts. U.S. Sprint Communications Company, LP (“Sprint”) provided an assortment of telecommunication services in New York City, including long-distance telephone service. Sprint’s long-distance telephone service involved calls that either were initiated from the City and received outside of the City, or initiated outside of the City and received within the City.