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.
Share
Link
New York
Services

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.

https://www.tax.ny.gov/pdf/advisory_opinions/sales/a16_32s.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.

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

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...