Fiber-to-the-Home Network Construction Taxable in Tennessee

Monday, July 17th, 2017

 
 
Illustration of fiber-to-home-network set-up.
Share
Link
Tennessee
Construction

The Tennessee Department of Revenue (DOR) recently ruled that tax applied to lump-sum charges for engineering and constructing a fiber-to-the-home network infrastructure. This infrastructure enables telecommunications companies to provide high-speed Internet access to customers.

The taxpayer was hired to engineer and construct the network and to provide all necessary materials. The construction required installing fiber huts and thousands of miles of cabling on existing telecommunications poles and underground.

The DOR ruled that the materials installed (e.g., fiber, conduit, and other associated items) remained tangible personal property after installation. When items remain tangible personal property after installation, the materials and labor are taxable in Tennessee. Therefore, tax applied to the lump- sum charges for engineering, construction, and materials.

https://www.ttrus.com/sites/default/files/newspdf/17-09_1500323966.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.

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

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...