Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0066 Cable TV Converters and Remote Controls. When a cable TV company provides a subscriber with a signal converter (decoder), the true object is to allow the viewer to make use of the service subscribed to, i.e., the encoded programs transmitted via the cable. The subscription agreement does not contain a separate charge for the decoder nor does the subscriber have to request a decoder as an "extra" to the contract. The decoder is tangible personal property incidentally provided pursuant to a service contract.
The remote control unit is separately stated in the contract with a separate amount charged for it. It is not physically attached to the cable system in any way. Remote control units are leased and the lease receipts are subject to tax if not purchased tax paid and leased in the same form as acquired. 6/5/87.