We are contacting you to inform you of some California county and local transactional tax changes that may impact you. These tax changes described below are expected to go into effect on or shortly after November 1, 2020.

Like many technology companies, Zoom is routinely evaluating its tax collection and remittance obligations. The application of these taxes to businesses like Zoom that offer new types of technologies is a complex and evolving area.

Zoom continues to review the products and services we sell, as well as the nature and extent of its activities in different jurisdictions. Based on such reviews, Zoom will implement tax changes from time to time to stay compliant with all government regulatory and tax requirements.

As a result of a recent review, Zoom will begin collecting the California Utility User Tax (UUT) and Communication User Tax (CUT) in applicable counties and cities within California. These taxes are levied on all residential and business customers for the purchase of services that include communication services where the sold to address is within one of the 150+ cities and counties that impose a UUT or CUT.

The definition of communication services subject to these taxes has been expanded as technologies evolve to include most services sold by Zoom. Zoom has reviewed the UUT and CUT requirements and determined that these taxes should be charged to our customers on the sales of Zoom Phone services and most conferencing services.

The tax rate imposed on communication services differs from city to city and will range from 0.5% to 11%. California does not provide for any tax exemption that a customer can claim specifically against these taxes unless they can demonstrate that the imposition of the taxes would be in violation of a federal or state statute, the Constitution of the United States, or the Constitution of the State of California.

If you have any questions regarding this tax change, please submit a support ticket to Zoom here and we will get back to you.

Zoom Billing Team