Jul 18, 2016
From KPMG TaxWatch
The South Carolina Department of Revenue recently released a revenue ruling addressing whether charges for streaming television programs, movies, music, and other similar content are charges for communication services subject to South Carolina sales and use tax. Under South Carolina law, the definition of “tangible personal property" for sales and use tax purposes encompasses certain types of intangible property and services, including communication services. South Carolina’s regulations provide guidance on the types of communication services that are subject to tax, including cable television services, satellite programming services, and other programming transmission services. In the Department’s view, streaming television programs, movies and music using the Internet was no different from cable and satellite transmission of television programs, movies music, and other similar content, all of which are taxable communication services. Accordingly, the Department ruled that amounts paid for streaming television programs, movies, music, and other similar content are charges for communication services subject to South Carolina sales and use tax whether paid as part of a subscription service, per item or per event. Please contact Nicole Umpleby at 704-335-5586 with questions on this ruling.
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The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.