Telecommunications Tax Frequently Asked Questions (FAQs)

Who has to file Telecommunications Tax?

Companies who provide Communication and/or Mulitichannel Video Programming to a person whose place of primary use is in this state, regardless of where or to whom those services are billed or paid, is required to file and pay Telecommunications Tax.

What are the Telecommunications Tax rates?

Telecommunications Tax is comprised of the following:

3 percent excise tax on multi-channel video and audio programming services,
2.4 percent gross revenues tax on multi-channel video and audio programming services, and
1.3 percent gross revenues tax on telephone communications services

When did Kentucky enact Telecommunications Tax?

Telecommunications Tax was enacted during the 2005 Session of the General Assembly as part of tax modernization, and became effective January 1, 2006. See KRS 136.600 – KRS 136.660 for further information on Telecommunications Tax.

How do I register to file Telecommunications Tax?

Please refer to the Telecommunications Tax Registration Steps at: https://revenue.ky.gov/Business/Telecommunications-Tax/Documents/Registration-Information.pdf

How do I reset my password?

On the login page under Forgot your password? Click where it says “Click Here” to change your password. You will then enter your account information including the Verification code, which is generally the account number of another account you have registered with the Department, and create a new password. After you have created a new password it will take you back to the log in screen, where you will be able to immediately log in with your newly created password.

How can I add additional user(s)?

Only the administrator of the account can add additional users. After you have logged in, click “User Maintenance” at the top of the screen, under the “Account” tab, then click “New User” and complete the required information, save, and the new user will be added.

(For user maintenance, you can select the user’s name and update any necessary information.)

What examples of services are subject to Telecommunications Tax?

Cable/satellite services, home/cell phone network services, and voice over internet protocol (VOIP) services are subject to Telecommunications Tax.

Which tax rates am I subject to if I am a Communications service provider?

Communication services are subject to one and three-tenths percent (1.3%) of the gross revenues received for the provision of communications services, as sourced under the provisions of KRS 136.605, billed on or after January 1, 2006.

(This will be entered on the Allocation Schedule under the column labeled gross revenues from communications services.)

Which tax rates am I subject to if I am a Multichannel Video Programming service provider?

Multichannel video programming services are subject to:

The three percent (3%) excise tax rate of the sales price charged for multichannel video programming service that is billed on or after January 1, 2006; and
The two and four-tenths percent (2.4%) of the gross revenues received for the provision of multichannel video programming service that is billed on or after January 1, 2006

(This will be entered on the Allocation Schedule under the column labeled gross revenues from MVP.)

What is a Total Allowable Franchise Fee Credit on the return?

This credit is only permitted for providers who service jurisdictions that have opted to impose a local franchise fee. The credit is allowable up to the applicable amount of excise and/or gross revenues tax paid to those jurisdictions for the filing period. An annual reconciliation of credits claimed is also required. This credit can be claimed on line 14 of the return and cannot exceed Net Tax Due on line 13.

How do I file/pay Telecommunications Tax?

After you log into your account, click the available period and complete the return and “Submit to DOR” by the required due date of the 20th of the following month.

To save the return to later complete, press “Save” which will change the return’s status to “Preparation in Progress” (This DOES NOT mean the return has been submitted).

Pressing “Complete” also saves your progress, but DOES NOT mean your return has been submitted. The “Submit to DOR” button has to be pressed for the return to be submitted.

Once the return and its status is “Submitted to DOR” you can either “E-Pay” or pay by EFT (Please note: to pay by EFT, you must create an account in the Tax Payment Solution service.)

What are my filing options?

Telecommunications Tax returns must be filed electronically. You can either file online by typing in the return information or by “Web File”, a formatted file that is sent to DOR’s web server. If you have been granted a waiver, you may submit paper returns. This waiver is only granted for special circumstances.

How do I Web File?

For more information on Web Filing, please see the Web File guide found online at: https://revenue.ky.gov/Business/Telecommunications-Tax/Documents/Web-File-Guide.pdf

Who receives the Telecommunications Tax collected?

A portion of these taxes will be transferred by the Department of Revenue to over 1,300 political subdivisions, school districts, Sheriff’s departments, and special districts throughout Kentucky in accordance with statutory distribution provisions, leaving the remaining portion to the DOR.

FOR DISTRIBUTION ENTITIES ONLY: How do I make changes to my account information? (for example, mailing address, email, or direct deposit account number)

You MUST complete an ‘Authorization Form’ found online on our website at https://revenue.ky.gov/Forms/75A010 20(2-18).pdf with all of the necessary information to make a change to our information here at the Department.

FOR DISTRIBUTION ENTITIES ONLY: Why do I receive a check from the DOR every month?

Your entity receives a check or direct deposit from the Department of Revenue each month from the franchise fees that used to be collected by the local governments and then portioned out to the entities that receive those monies, such as fire departments, public libraries, school boards, etc. Because that is now handled through the Department of Revenue, we distribute the taxes collected from those fees to all local governments and special districts.