Communication equipment

Tangible personal property used to provide a communication service by a communication service provider, but that is not sold, leased, or rented to a retail customer is taxable. Taxable charges include downpayments, commission charges, or other service or handling charges applied in conjunction with the sales, rental, or lease of tangible personal property. Communication systems sold, leased, or rented to a retail customer may include both material and equipment that are installed, attached, or affixed to real property and material and equipment that remains tangible personal property. The material and equipment installed, attached, or affixed to real property is subject to sales or use tax based on the cost of the material and equipment to the installer. A communication system that includes material and equipment installed, attached, or affixed to real property and material and equipment remaining tangible personal property must be separately stated on the billing. That portion of the billing representing the installation of material and equipment into real property is subject to sales or use tax based on the cost of the material and equipment and that portion remaining tangible personal property is subject to sales tax based on the selling price to the final consumer. The purchase of telephone directories for distribution to subscribers is not for resale and sales tax applies at the time of purchase.