State Tax Assessor v. MCI Communications Services, Inc.

Maine Revenue Services (MRS) assessed MCI Communications Services, Inc. (MCI) $184,873.69 for two types of surcharges - property tax recovery charges (PTRCs) and carrier cost recovery charges (CCRCs) - that MCI imposed upon its Maine customers. The Maine Board of Tax Appeals vacated the imposition of the tax based on its determination that the PTRCs and CCRCs were excluded or exempt from taxation because they were part of the sale of interstate or international telecommunications services. The Supreme Judicial Court affirmed, holding that the PTRCs and CCRCs collected by MCI before July 18, 2008 were excluded from taxation and that those charges collected from MCI from July 18, 2008 forward were exempt from taxation. View "State Tax Assessor v. MCI Communications Services, Inc." on Justia Law