Cable Company’s Charges to Lay Cable Not Taxable in New York

Thursday, February 9th, 2017

Close-up of multi-colored cables, wire cutters and heavy duty tape.
New York

The New York Department of Taxation and Finance ruled that fees charged by a cable company to lay cable were not taxable.

The taxpayer was a rural business that bought broadband service. The cable company had to lay cable out to the taxpayer's property to be able to provide the service. As part of the service contract, the cable company billed the taxpayer for part of the cost to lay the cable.

New York taxes sales of services for the improvement of real property. It does not tax internet access services such as broadband services.

The ruling stated that the cable company's charges for the cost of laying cable were not for an improvement to real property. Instead, the charges were part of the price of internet access service. Because internet access service is not taxable, the charges were not taxable.

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 or call 866.578.8193.

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...

Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018 -The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases...