Time Warner Owes New York $6.7 Million in Sales Tax, Judge Rules

A Charter Communications Inc. subsidiary is stuck with a $6.67 million sales tax bill after a New York administrative law judge found that customer contributions to a federal affordable phone service program are taxable.

Time Warner Cable Information Services (NY) LLC collected Federal Universal Service Fund fees from its customers as part of a bundled plan for intrastate and interstate phone service. Those fees are part of the whole purchase and don’t fall under a sales tax exemption for interstate and international service, Administrative Law Judge Alejandro Taylor of New York Division of Tax Appeals ruled in an opinion released ...