Tennessee network service not considered taxable telecommunications.

Computer network services using computer systems to display information and allow users to interact to make transactions are not considered taxable for sales and use tax purposes, even though there are some telecom transmissions occurring during the process. The court found the main object of the service was to supply information, not to supply telecommunication service. (Prodigy Services Corp. v. Johnson, Tennessee Chancery Court, No. 98-1051-III, March 18, 2002, received August 14, 2002)

Posted on December 15, 2002