Current through Register Vol. 24-06, March 15, 2024
(1)
Definitions. The following
definitions apply to this section.
(a)
"Subscriber television" refers to all businesses providing television
programming to consumers for a fee. It includes, but is not limited to, cable
television and satellite television. Subscriber television often transmits to
its customers special channels offering a variety of programming such as
movies, sporting events, children's entertainment, news and other informational
services.
(b) "Fee" includes the
amount paid by the subscriber to receive the subscription television service.
Generally, the fee consists of an amount for installation and a monthly charge
for maintenance or service.
(2)
Business and occupation tax.
Persons engaging in the business of subscriber television are subject to
the business and occupation tax as follows:
(a) Gross income derived from the charge made
for installation and the monthly rental or service fee is subject to tax under
the classification service and other activities. (See WAC
458-20-224.)
(b) Gross income derived from advertising
revenues is subject to tax under the classification radio and television
broadcasting. (See WAC
458-20-241.)
(c) No deductions from gross income may be
taken for affiliate fees, video service fees, satellite fees, copyright fees,
or any other amounts paid to other firms for special programming provided to
subscribers.
(3)
Use tax. Persons engaging in the business of subscriber television
are subject to retail sales tax or use tax on all purchases of tangible
personal property utilized or required in providing service to subscribers.
(See WAC 458-20-178.)
Statutory Authority:
RCW
82.32.300. 91-05-039, § 458-20-227,
filed 2/13/91, effective 3/16/91; 83-08-026 (Order ET 83-1), § 458-20-227,
filed 3/30/83; Order ET 70-3, § 458-20-227 (Rule 227), filed 5/29/70,
effective 7/1/70.
