Subscription to, access to, or use of video services for public consumption by video programming service providers are subject to the state sales tax at a rate of 8.25% on all charges of $15.01 – $27.50 per month. Charges of $27.51 and higher are taxed at the standard state rate. Charges of $15 or less are exempt from state sales tax. These same services are exempt from the local option sales tax on the first $27.50 of charges per month, but they are subject to the applicable local rates on charges of $27.51 or higher. See this August 1999 Important Notice for more information.
Sales of direct-to-home satellite television programming or television services are taxed at a state rate of 8.25% on all charges, but they are not subject to the local option sales tax.
Video programming services also are subject to business tax as a Class 3 service at the location of the customer. However, there are exemptions from business tax for:
- people operating television stations (excluding cable television) under the authority of a certificate from the Federal Communications Commission, and
- providers of direct-to-home satellite television programming services.