Were charges for adding local contact information to a network video feed and for recording a satellite program taxable in Texas?

Plain-English summary

The requester asked about two video-related charges: character-generated tagging and recording a satellite program.

The letter defined character-generated tagging as adding a client's name, address, and telephone number to the end of a videotape. That charge was not taxable when the information was added to a network feed sent to a station, such as adding local contractor contact information to a branded air-conditioning feed.

By contrast, the Comptroller said the charge for videotaping a satellite program was taxable.

What this means for you

The two services received different treatment. Adding local contact information to the described network feed was nontaxable, while creating a videotape of the satellite program was taxable.

Common questions

What information did the tagging add? The client's name, address, and telephone number.

When was tagging nontaxable? When the charge was for adding that information to a network feed to the station.

Was recording the satellite program taxable? Yes.

Did the letter cite a numbered statute or rule? No numbered authority appears in the source text.

Citations and references

• The letter did not cite a numbered statute, regulation, or case.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9106L1131C13

Original ruling text

June 4, 1991

Dear **:

Thank you for your letter of April 24, 1991, concerning the
taxability of charges for character-generated tagging and for
satellite recording of a program.

Character-generated tagging is the addition of a client's name,
address, and telephone number to the end of a video tape. This
service is not taxable if the charge is for adding the information
to a network feed to the station, e.g., adding the name, address,
and phone number of area air conditioning contractors who sell,
service and install a particular brand of air conditioner.

The charge for videotaping a satellite program is taxable.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion may change.

You may call toll free 1-800-252-5555 if you have any questions
or need more information. You may write to Tax Administration
Division, Comptroller of Public Accounts.

Sincerely,

Eddie C. Washington
Tax Administration Division