Transparency - Communications Services Tax

The Communications Services Tax ("CST") was enacted in 1990. The tax is assessed on two-way communications services at a rate of 7% of the gross charge made for such services. The tax is assessed on the consumer of communications services but is collected and remitted by communication services providers/retailers, including retailers of prepaid wireless and VoIP, who must register with the Department. CST returns must be filed by the provider/retailer on the 15th day of the month for the preceding calendar month, accompanied by the tax collected. Any provider/retailer with an estimated monthly liability in excess of $10,000 is required to make an estimated payment equal to 90% of the actual tax collected on or before the 15th day of the month during which the liability is incurred.