Louisiana Exempts Video on Demand and Pay-Per-View Cable Services

Wednesday, January 7th, 2015

 
 
A cable tv remote.
Share
Link
Louisiana
Cable

The Fifth Circuit Court of Appeals of Louisiana affirmed that video on demand (VOD) and pay-per-view (PPV) programming are exempt.

The taxpayer was a cable provider that sold basic cable services, premium channels, VOD, and PPV. The Parish of Jefferson assessed the taxpayer for sales tax on its VOD and PPV services. The taxpayer appealed, and the trial court ruled that VOD and PPV were exempt cable services. The parish appealed, but the appeals court upheld the trial court's findings.

In Louisiana, local parishes may impose tax on sales of tangible personal property and certain services. "Tangible personal property" is personal property which is in any manner perceptible to the senses. Computer software is tangible personal property. However, Louisiana exempts fees for "regular" cable services provided to consumers. "Regular" services are any services necessary in connection with the installation and service of cable television. These services include providing channels offered to the public on a regular basis.

VOD and PPV services are exempt regular cable services and not taxable tangible personal property. VOD and PPV cannot be perceived by the senses and are not stored on tangible media by the customer, so they are not tangible personal property. They also do not qualify as computer software because the videos are merely streams of data that must be interpreted by software or firmware. VOD and PPV qualify as services, which are ordinarily taxable in Louisiana. However, VOD and PPV qualify for the cable services exemption. These services are channels offered to the public on a regular basis, so they are exempt regular cable services.

http://www.fifthcircuit.org/dmzdocs/OI/PO/2014/94F76E68-405E-4089-911E-D6104A5B6E4A.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...

South Dakota Provides Guidance on the Taxation of Churches

Wednesday, October 3rd, 2018 -The South Dakota Department of Revenue (DOR) recently released guidance that provides information about how sa...