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
Ark. Code Ann. § 26-52-301(3)(C)
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