006.05.06 Ark. Code R. § 9.1 - SERVICES SUBJECT TO TAX - TELEVISION, RADIO, AND VIDEO

A. Gross receipts tax applies to the service of cable television, community antenna television, and any and all other distribution of television, video, or radio services with or without the use of wires provided to subscribers or paying customers or users, including all service charges and rental charges, whether for basic service, premium channels, or other special service, and including installation and repair service charges and any other charges having any connection with the providing of the services. Gross receipts derived from charges for television or radio services received through the use of a satellite dish or other satellite receiver are subject to tax.

B. Gross receipts tax does not apply to services purchased by radio or television companies for use in providing their services.

C. A provider of direct-to-home satellite services is not required to collect local (county, city, or town) tax on direct-to-home satellite service. The federal preemption of the collection of local tax on this service does not apply to state tax. A provider of direct-to-home satellite service is required to collect and remit state sales tax on the service.

D. Video services includes the receipt of, or access to, video images on a television, monitor, or other video display device through a modem, satellite transmission or other delivery mechanism, provided that the video images are available to all subscribers to the service and are not customized for each subscriber. Receipt or access to video images solely through the use of an Internet service provider is not a taxable service.

1. Examples of taxable video services include the following:

a. Receipt of business, financial or sports news through a satellite or modem; and

b. Receipt of video programming through Direct TV or other similar satellite network.

2. Examples of nontaxable services include the following:

a. Retrieving information from a database through a satellite network for a fee;

b. Radio services include the transmission of AM, FM, or other frequency audio broadcasts by radio waves. "Radio services" do not include the transmission of messages by radio waves over frequencies not available to the public. For example, the service of delivering private radio messages between a trucking company headquarters and its truck drivers through a satellite-based mobile communications system is not a taxable radio service.

Notes

006.05.06 Ark. Code R. § 9.1

Ark. Code Ann. § 26-52-301(3)(C)