The South Carolina Department of Revenue ("DOR") ruled that sales tax applies to charges for streaming television programs, movies, music, and similar content.
South Carolina taxes communications services. "Communications" services are "ways or means for the transmission of the voice or messages." They include "access to, or use of, a communications system."
The DOR explained that streaming video and music services fit the definition of communications services. The services gave customers access to a communication system so they could enjoy audio and video presentations.