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.

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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.

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