
The Governor’s budget contained a “clarification” in the property tax exemption for communications services. While it is aimed at cable systems, it may impact stations.
Under Real Property Tax Law, telecommunications property is not taxable if it is “used in the transmission of news or entertainment radio, television or cable television signals for immediate, delayed or ultimate exhibition to the public.” There have been numerous cases questioning whether a property qualified as being “used” in the transmission of radio, TV, etc.
The amendment makes it clear that to qualify, the property must be primarily or exclusively used in the transmission of news or entertainment radio, television, or cable television signals for immediate, delayed, or ultimate exhibition...” Our understanding is that most courts have used this standard in tax cases and that this modification merely clarifies the law.
While directed at cable systems, it may inadvertently impact stations with multi-use properties.
Attached, please find the exact legislative language and explanation provided by the Governor.
We urge you to forward this information to your accountant and/or tax counsel to see if this impacts your station. Please let us know if this is an issue.
You can access the language of the statute and the Governor’s explanation here.