The Sales Tax Connection

  • Welcome to the Sales Tax Connection!

    Our goal is to provide you with some interesting news about sales tax around the globe and give you links to other sites that you might find helpful. If you find something important is missing, or would like us to cover a specific topic, please leave us a comment. Remember to visit often as the website will be updated frequently with new items. As often as sales tax changes, so will we!
  • SalesTaxConnect on Twitter

    Error: Twitter did not respond. Please wait a few minutes and refresh this page.

  • Top Posts

  • Top Clicks

  • Post History Archives

  • Disclaimer

    Tax legislation and administrative policies are complex and subject to change. Therefore, should you wish to ask for our opinion on any of the matters posted (or any sales tax matter in general), please know that the conclusions reached herein and views expressed are matters of interpretation and opinion rather than certainty. The information provided is based on understanding of the facts as provided by various media sources (and you) and is not meant to represent a ruling, nor is it legally binding.

    Should you require further clarification of any of these subjects to make determinations for your business, please contact us to arrange a formal agreement for consulting services. We can help you work directly with the taxing jurisdiction to obtain a written interpretation from the appropriate tax department or pursue the matter for you via required methods.

    If I am unable to assist you, I'll gladly promote others in the industry who I think are worthy.

  • Blog Stats

    • 302,075 Hits to date.

TV Converter Box Coupons (Taxable or Exempt?)

Posted by salestax on July 8, 2008

States keep coming out with rulings regarding the taxability of these coupons being issued by the US Department of Commerce’s National Telecomm and Information Administration.  As most of us know, general television viewing will be changed as we know it – from Analog picture to Digital.  For people who have not recently purchased new television sets, companies are selling Converter boxes that will allow older sets to still be used when the change happens.  To accommodate US citizens for this expense, the government is issuing $40 coupons to be used toward the purchase of these boxes. 

I’m going to try to keep a list of the states that issue public releases on how they will treat this coupon… check back occasionally for more updates to this post. Reduces or Does Not Reduce Taxable Price.  If your state is listed with “Reduces,” then you should only expect to pay tax on the difference after the coupon is calculated.  (example:  Price $50, less coupon $40 = $10 x 5% sales tax = $10.50 total paid.)  If your state is listed with “Does Not Reduce,” then you should expect to pay tax on the whole amount of the box and then use the coupon off of the total price after taxes.  (example:  Price $50 x5% sales tax = 52.50, less $40.00 coupon, total paid $12.50.)

If you need a coupon visit www.dtv2009.gov.

For Starters – More added…: 

CA – Reduces (thanks for the notice A.L.)

CT – Reduces

FL – Reduces

IL – Reduces

KS – Does not Reduce

KY – Reduces

MA – N/A – Cable boxes aren’t taxable.  So the coupon is just dollars off purchase price.

NE – Does Not Reduce 

NC – Does Not Reduce

NM – Does Not Reduce

NY – Does Not Reduce

NV – Reduces (thanks Ron, I saw this in the newsletter from NV, but never posted – thanks for the reminder!)

OH – Does Not Reduce

PA – Reduces (thanks for the notice A.S.)

SC – Does Not Reduce

TN – Does Not Reduce

TX – Reduces

UT – Does Not Reduce (thanks Kristin)

VA – Does Not Reduce

WI – Reduces

Advertisements

10 Responses to “TV Converter Box Coupons (Taxable or Exempt?)”

  1. Pennsylvania no tax on converter box $40 coupon . . you can update the list

  2. Alfredo Sanchez said

    http://www.revenue.state.pa.us/revenue/cwp/view.asp?A=238&Q=283321

  3. Al Lind said

    California does not charge tax.
    Bulletin issued August, 2008 says
    “Consumers who believe they have been overtaxed should take their receipt to the retailer and request a refund of the amount of tax that was overpaid.”

    See http://www.boe.ca.gov/news/pdf/L202.pdf

  4. Kristin said

    Below is a ruling issued by Utah regarding this:

    http://tax.utah.gov/research/rulings/07-014.pdf

  5. Ron said

    NEVADA REDUCES – e.g. applies sales tax on net amount AFTER Federal Rebate coupon.

    http://tax.state.nv.us/documents/0164%20-%20OCT%202008.pdf

    REFER TO PAGE 3: “In accordance with NRS 372.325,
    coupons issued by the Federal Government under the
    “Digital Television Transition and Public Safety Act of
    2005,” reduce the taxable base of cable TV converter
    boxes purchased with the coupons, by the face value of
    the coupon. For example; if the retail price of a
    converter box is $49.99, and the coupon issued by the
    U. S. Federal Government has a face value of $40.00,
    the taxable amount to the purchaser on the sales receipt
    would then be $9.99.”

  6. Reid said

    To Ron from Nevada. Is the reduction good only from October-on or does it apply to when the Coupons were first being sold in Nevada?

  7. salestax said

    Reid: The treatment of these coupons would be from the time the coupons were first being used in NV. But, if a NV resident received one of these coupons and took it to a store in Utah, it would be treated differently (see the UT rule). Hope this helps!

  8. […] Since these are starting to get attention, I’ll try to track these as I’m sure they’ll be coming in small waves from most states so that car dealers know how to treat these reimbursements. My guess is that they’ll be treated somewhat like the TV Converter boxes (see those determinations here – https://salestax.wordpress.com/2008/07/08/tv-converter-box-coupons-taxable-or-exempt/). […]

  9. Cable TV is great specially if you got those digital cable boxes that is coupled with TIVO “

  10. ptc said

    The post is written in very a good manner and it entails many useful information for me. I am happy to find your distinguished way of writing the post. Now you make it easy for me to understand and implement the concept. Thank you for the potential article.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: