Revenue Information Bulletin 10-015: Sales Tax Treatment of Transactions Involving Pay-per-view and On-demand Movies
The Louisiana Department of Revenue has issued Revenue Information Bulletin No. 10-015 concerning the state sales taxability of transactions for the furnishing of pay-per-view and on-demand movies leased by viewers from cable television and satellite television providers.
Louisiana Revised Statute 47:305.16 provides a sales and use tax exemption for necessary fees incurred in connection with the installation and service of cable television. This exemption applies only to funds collected from the subscriber for regular service, installation and repairs. Rentals of pay-per-view and on-demand movies and programs are not considered part of a regular subscription purchase by a cable or satellite customer. There is an extra fee for pay-per-view movies and for some on-demand movies over and above the regular subscription service fee charged to each customer.