Are video programming services subject to tax?

Sales Tax

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.

Business 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.
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