Time Warner Escapes $6.7 Million NY Sales Tax Bill After Appeal

A Charter Communications Inc. subsidiary convinced a divided New York state tribunal it doesn’t owe sales tax on customer contributions to a federal affordable phone service program.

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. A state administrative law judge ruled in 2024 that the fees are part of the entire purchase and thus don’t fall under a sales tax exemption for interstate and international service.

The New York Tax Appeals Tribunal reversed in a 2-1 decision obtained Thursday. The ...