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Telephone Personal Property Tax

Every person or entity owning or operating a telephone line or business is subject to a tax equal to 2.37 percent of net book value as of the preceding December 31 of all personal property located in Vermont used in whole or in part for conducting a telecommunications business. See 32 V.S.A. Chapter 211 § 8521-8522

Some taxpayers may be eligible to pay a “gross receipts” tax as an alternative to the telephone personal property tax. The “alternative gross receipts tax” is further discussed below.

Owning or Operating a Telephone Line or Business

Any person or entity that owns or operates a telephone line or that owns or operates a business that provides telecommunications services is subject to the telephone personal property tax. Persons or entities that provide traditional telecommunications services through a public switched telephone network (PSTN) are subject to the telephone personal property tax. Persons or entities that provide telecommunications services through mechanisms other than a PSTN, including Voice over Internet Protocol (VOIP) technology, are also subject to the telephone personal property tax.

What Property is Subject to This Tax

All personal property used in whole or in part for conducting a telecommunications business is subject to this tax, including personal property under construction, materials, and supplies. Property subject to tax as real property is not subject to the Telephone Personal Property Tax.

Net Book Value

“Net book value” of personal property means the original cost less depreciation of the property as computed for the federal income tax return required to be filed with the federal authorities for the corresponding tax year. Accelerated depreciation taken in accordance with Federal income tax law, including “bonus depreciation” under IRC § 168(k), is includable when calculating net book value.

The Alternative Gross Receipts Tax

In place of the telephone personal property tax and any income tax imposed under 32 V.S.A., Chapter 151, a person or entity owning or operating a telephone line or business may instead be eligible to elect to pay an alternative gross receipts tax. To be eligible to elect to pay the gross receipts tax, the person or entity must have received less than $50 million in annual gross operating revenues within the State in the preceding taxable year.

A person or entity that elects to pay the gross receipts tax will be taxed on its entire gross operating revenues from its operations within the State for the fiscal year ending June 30. The tax is computed as follows:

Where the gross operating revenues during the quarter:

  • exceed $250.00 and do not exceed $1,250.00, the tax shall be 2 1/4 percent;

  • exceed $1,250.00 and do not exceed $2,500.00, the tax shall be 2 1/2 percent;

  • exceed $2,500.00, and do not exceed $5,000.00, the tax shall be 2 3/4 percent;

  • exceed $5,000.00 and do not exceed $10,000.00, the tax shall be 3 percent; and

  • the rate of tax shall be increased 1/4 of 1 percent for each additional $5,000.00 or fractional part thereof of such gross operating revenue. However, the rate shall in no event exceed 5 1/4 percent of the gross operating revenues.

Taxpayers who elect to file on gross receipts under 32 V.S.A., Subchapter 6, § 8522(b) must file form TGR-652 and pay the applicable tax to the Commissioner of Taxes no later than 25 days following the last day of the third, sixth, ninth, and twelfth month of each taxable year.

How to File

Online: Taxpayers may file returns and pay tax due using myVTax, our free, secure online filing site. If you have any questions, contact us at (802) 828-2551 or tax.business@vermont.gov.

Paper Returns: You may still use the paper forms if If you cannot file and pay through myVTax.

Telephone Personal Property Tax Forms and Guidance

Tax Forms and Instructions

Form Number Instructions Title Revised
TGR-652 Included on form Telephone Gross Receipts Tax Return 2017
TPP-650 File using myVTax Telephone Personal Property Tax Payment Voucher 2020
TPP-651

Instructions

File using myVTax

Telephone Personal Property Tax Return and Schedule 2020
TPP-653

Instructions

File using myVTax

Telephone Personal Property Tax Return and Schedule 2020

Fact Sheets and Guidance

Title Revised Number
Vermont Department of Taxes ACH Credit Payment Guide 2023 GB-1104

Filing Frequency

Monthly Filings

Telephone Personal Property Tax is paid monthly, with a payment due on the 25 day of each month of the calendar year. For example, a monthly payment is due January 25 for the personal property valuated as of December 31. For the first two months of each year, make estimated payments, with a reconciliation and any additional payments due with the annual return.

To avoid an underpayment of your estimated tax, which may result in penalty and interest charges, your estimated monthly payments for each of the first two months of the calendar year must either be equal to:

  • One-twelfth (1/12th) of 100% of the tax due for the previous year’s tax; or

  • One-twelfth (1/12th) of 90% of the year’s actual tax liability.

Telephone Personal Property Tax

Due Date Monthly Payment
1/25/2024 1st Monthly Estimated Payment
2/23/2024 2nd Monthly Estimated Payment
3/25/2024 Return and Reconciled 3rd Monthly Payment for the first three months of 2024
4/25/2024 4th Monthly Payment
5/28/2024 5th Monthly Payment
6/25/2024 6th Monthly Payment
7/25/2024 7th Monthly Payment
8/26/2024 8th Monthly Payment
9/25/2024 9th Monthly Payment
10/25/2024 10th Monthly Payment
11/25/2024 11th Monthly Payment
12/26/2024 12th Monthly Payment
1/27/2025 1st Monthly Estimated Payment (Tax Year 2025)

Telephone Gross Receipts Tax

Tax Period Ending Due Date
12/31/2023 1/25/2024
3/31/2024 4/25/2024
6/30/2024 7/25/2024
9/30/2024 10/25/2024
12/31/2024 1/27/2025

Laws, Rules, and Regulations

Title Section
Telephone Companies 32 V.S.A. § 8521
2016 Highlights of Tax Legislation Sec. 38 of Act 134
Telecommunications Services and Telecommunications Products 1990-04