Florida Court Rules Higher Tax Rate for Satellite Services Unconstitutional

Wednesday, June 17th, 2015

A T.V. satellite dish.

The Florida Court of Appeals ("Court") ruled that the state's higher tax rate for satellite services than for cable services was unconstitutional.

Florida imposes the Communications Service Tax on television services. Satellite services are taxed at a higher rate than cable services. Satellite services provide programming to customers by using satellites and out-of-state infrastructure. Cable services provide programming by using local distribution facilities and in-state infrastructure.

The United States Constitution bars states from treating out-of-state commerce differently than in-state commerce. A state law unconstitutionally discriminates against out-of-state commerce if it (1) places a greater burden on out-of-state business and (2) gives an advantage to in-state business.

The Court ruled that the higher tax rate discriminated against out-of-state commerce. Satellite and cable companies were similar businesses - they both sold television programming services and directly competed against each other. The higher rate placed a greater burden on satellite companies, which used out-of-state infrastructure, than on cable companies, which used in-state infrastructure. The higher tax rate was therefore unconstitutional.


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.

Data Survey Services Not Taxable in South Carolina

Monday, June 24th, 2019 -The South Carolina Department of Revenue recently ruled that business data survey services were non-taxable pr...

Senior Center Cafeterias are Taxable in Missouri

Friday, June 21st, 2019 -Missouri's Director of Revenue recently issued a letter ruling taxing the sale of cafeteria food by a 501(c)(3...

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...