(a)  Sales of broadcasting equipment and parts and accessories attached to the equipment to a cable service provider are exempt from sales and use tax.  Examples include towers and antenna.  The term "cable service provider," as used in this Rule, means a cable television company that receives consideration from its subscribers and uses broadcasting equipment and parts and accessories and a tower to receive and prepare signals for transmission over their cable systems and also is regulated and supervised by the Federal Communications Commission.

(b)  The sale of developed movie film to cable service providers which operate under the regulation and supervision of the Federal Communications Commission for use by them in broadcasting and telecasting programs is exempt from sales and use tax.

(c)  Antenna cable, transmission cable, trunk, feeder and drop cable, and tangible personal property purchased by cable service providers other than towers, antennas and purchases of broadcasting equipment and parts and accessories thereto are subject to the applicable statutory state and local sales or use tax.


History Note:        Authority G.S. 105-164.4; 105-164.6; 105-164.13;105-262; Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;

Eff. March 1, 1984;

Amended Eff. August 1, 2009; April 1, 1997; October 1, 1993; October 1, 1991; August 1, 1986; December 1, 1984.