96-014

Response January 26, 1996

Request

January 22, 1996

Dear XXXXX,

We have been advised by the customer service technical staff at the Tax Commission that you would be able to give written information concerning the commission ruling on the taxing status of XXXXX satellite system installation labor.

Thank you for your help given.

Sincerely,

XXXXX

January 26, 1996

XXXXX

RE: Advisory Opinion - Sales tax on satellite installation charges.

Dear XXXXX,

We have received your request for information concerning the application of sales tax to charges for installing television satellite systems. Your letter did not describe the installation process, but we assume for purposes of this answer that your company sells a satellite dish, then installs it by affixing it to the customer's house and wiring it into the house. On that basis, we offer you the following guidance.

Charges to install tangible personal property to real property are not subject to sales tax. Therefore, charges to attach a satellite dish to a house and to run wiring within the house are not taxable. Of course, the sale of the satellite dish and its accessories is taxable. Taxable and nontaxable charges must be separately stated on the invoice or receipt.

If your situation involves other facts that have not been represented in this response, please let us know.

For the Commission,

Alice Shearer

Commissioner