Qwest Corporation v. State of Wyoming, by and through the Wyoming Department of Revenue

Summary

The Supreme Court of Wyoming held that an End User Common Line charge imposed by Qwest Corporation was not subject to Wyoming sales and use tax. The court concluded that the charge compensated Qwest for interstate telephone access rather than intrastate telephone services under Wyo. Stat. Ann. § 39-15-103(a)(i)(C). Because the tax statute did not clearly and unambiguously reach the charge, the court construed it in favor of the taxpayer and reversed the State Board of Equalization's decision.

Holdings

1. The End User Common Line charge is not a charge for intrastate telephone services within the meaning of Wyo. Stat. Ann. § 39-15-103(a)(i)(C) and the Wyoming Department of Revenue's rules. Because the statute does not clearly, definitely, and unambiguously impose tax on the charge, the charge is not subject to Wyoming sales and use tax.

Questions Presented

1. Whether the End User Common Line charge is a charge for intrastate telephone services subject to Wyoming sales and use tax under Wyo. Stat. Ann. § 39-15-103(a)(i)(C).
2. Whether the statute of limitations barred part of the assessment.
3. Whether the State Board of Equalization violated its rules by failing to recite the Department of Revenue's burden of proof.

Disposition

reversed