Comcast of South Jersey Inc. v. Director, Division of Taxation, No. 001153-2004; Tax Court; opinion by Brennan, J.T.C.; decided and approved for publication February 20, 2013. DDS No. 35-5-xxxx [23 pp.]
Comcast, which provides cable television service in New Jersey, has filed a summary judgment motion in these consolidated matters challenging the July 2003 use tax assessment of defendant, the director of the Division of Taxation, with regard to converters and remotes and the assessment of underpayment penalties. Comcast contends that the converters and remotes were exempt from taxation pursuant to N.J.S.A. 54:32B-8.13(e), which provides an exemption from the Sales and Use Tax Act for machinery, apparatus or equipment which has a useful life of more than one year and is used directly and primarily in the production or transmission of radio or television information, and that it should not be responsible for any underpayment penalties because of confusion and ambiguity regarding the tax liabilities at issue.
