Cingular Convinces Indiana Court Sales Tax Break Covers Phones

AT&T Inc. unit New Cingular Wireless PCS LLC is entitled to an Indiana use tax exemption for cell phones it gave customers who signed contracts or made insurance claims, the state tax court ruled.

The exemption for “radio or microwave transmitting or receiving equipment” isn’t limited to central network infrastructure equipment as the state revenue agency argued, Indiana Tax Court Judge Justin L. McAdam ruled Tuesday.

The case presented the court with an issue of first impression: whether the state’s telecommunications equipment sales and use tax exemption covers cell phones. The court said it does.

Cingular bought Apple iPhones and ...