Tax & Accounting Blog

Arizona Ruling – Cable Company Ruled a Telecommunication Company Based on VOIP Service

Blog, ONESOURCE, ONESOURCE Property Tax June 24, 2013

Arizona Court of Appeals rules that a cable company is a telecommunications company subject to central assessment because the company provides telephone service to its subscribers through its Voice over Internet Protocol (VoIP) service. The judges reviewed Ariz. Rev. Stat. Ann. § 42-14401, which defines centrally assessed telecommunication property. Since the statute is not explicit on the issue of VoIP services, the court looked at the statute’s legislative history and determined that the cable company was providing phone service through their VoIP service and, therefore, is considered a telecommunications company and should be centrally assessed. (Source: Dkt. No. 1 CA-TX 12-0006, 06/11/2013)

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