Connecticut State Department of Revenue Services

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Ruling 90-59

Monitoring Services

ISSUE:

Whether monitoring services to detect unauthorized reception of cable communications by non-subscribers are subject to the sales and use tax.

FACTS:

Local cable companies have problems with non-subscribers who "hook up" for the unauthorized reception of cable communications using subscribers' lines. In order to detect unauthorized reception of cable communications, Federal law permits local cable operations to use the cable systems to collect personally identifiable information concerning any subscriber without the prior written or electronic consent of the subscriber. Company X carries out the actual monitoring of individual cable hook-ups to detect any unauthorized use.

RULING:

Company X's service of monitoring individual cable hook-ups to detect unauthorized use is not subject to sales and use tax. Such service is not enumerated as subject to tax pursuant to Section 12-407(2)(i) of the General Statutes.

LEGAL DIVISION

July 25, 1990