Part 1. COMPTROLLER OF PUBLIC ACCOUNTS
Subchapter O. STATE SALES AND USE TAX
The Comptroller of Public Accounts adopts amendments to §3.313, concerning cable television service, without changes to the proposed text as published in the February 16, 2007, issue of the Texas Register (32 TexReg 607).
The adopted amendments implement substantive changes due to the decision in Sharp v. Clearview Cable TV, Inc., 960 S.W.2d 424 (Tex.App.--Austin 1998, pet. denied) relating to equipment that may be purchased for resale by a cable television service provider, and due to the Telecommunications Act of 1996 as it relates to the federal preemption of local taxes on direct-to-home satellite cable television service. Subsections (d), (e), and (g) are amended accordingly. Nonsubstantive changes are made throughout the section to improve clarity and readability.
Comments were received from an attorney for the Texas Cable and Telecommunications Association asking that the agency amend subsection (g) of the rule to provide that a direct-to-home satellite cable television service provider is exempt from collecting and remitting any local tax due on its service, but it may offer to collect and remit any local tax due for the convenience of its customers. The agency declined to amend the rule as proposed and instead maintain the language in the rule which reflects longstanding agency policy that direct-to-home satellite cable television service is not subject to local tax under the Telecommunications Act of 1996.
This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.
The amendment implements Tax Code §151.0101(a)(2) and §151.0033.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 23, 2007.
TRD-200703185
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: August 12, 2007
Proposal publication date: February 16, 2007
For further information, please call: (512) 475-0387