ÿWPCà r†Ä]MÆ‘õ(fÆ;>d¿‹¨Ç¥Ê2à/:“úë|™ÓibÀZÇpé¸nür–3g´«V€Cì—¶<ÞYÍ‹Xµšç:^½Fg¯d?ï`ÚÉäšsÿ·ªY§$ƒ«ÎÜf @ \»îb@Žæé c¶¢RnûA{~”ä·;3´³—Ð4ŽE›oÍŠ. 8ô ¤ýA¶tcTºÏ¡ucYx ÃöCiǰyÃ6»F…37ŒšçïÈNÈÆ[Q»~?‘þsÆÝ…—VvEgaj2Ø[6ê…‡Öt×Óã`¼v _êbêG!ÖšuvÄ-éîl#ÒÕ±ª´Ûbêé­IbÌëE´ "I«1Vvû[6ŒIð½D QÔ.× ¹•À€AqZIõ ãúC³Þÿ4PÑWdØF±kÍÿ޳úií´€›ã[mÀÈÈøÐ¨ô\¢Ô¹ûLÅ>¢¨*# LUNW %¥ 0(«UNÓw@!4au„UNŒNÚUN( 0lv 0Dâ 0D& j U:k k k k k k k k k k k k k k k AQ¥ Æö B¼ 0DÙ 0D D/aa B D3­˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLlÎ(ÈhH  Z 6Times New Roman RegularX($¡¡'Ör Z ‹6Times New Roman Regular   E  D! " # D$ % Ó€/ ©yË&3|x/ (ÖÃ9 Z ‹6Times New Roman Regular DÝ ƒ þÝ$Ýà  àòòÚ  Ú1Ú  ÚóóÝ  Ýà ` àT.C.A.€ðð€67„6„212(a)(5)€provides€an€amusement€tax€on€ð ð[f]ees€for€subscription€to,Ð ° Ðaccess€to€or€use€of€cable€television€services€in€excess€of€those€charges€made€for€the€basic€rateÏcharged€by€the€supplier€of€such€services.ðð€€Tenn.€Code€Ann.€ðð€67„6„„212(a)(5)€(1998).€ÏTennessee€Sales€and€Use€Tax€Rule€1320„5„1„1.27€provides€that€ð ð[b]asic€cable€television€serviceððÏmeans€a€ð ða€basic€package€of€broadcast€channels,€local€origination€channels,€advertiser€supportedÏchannels,€and€access€information€channels€or€home€shopping€channels,ðð€while€ð ð[c]harges€forÏpay„per„view,€FM€connection,€program€guide,€remote€control,€premium€channels,€duplicateÏpremium€channels,€and€installation€are€in€excess€of€the€basic€rates.ðð(ÖÃ9 Z ‹6Times New Roman Regular((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó(3¯$¢¢Ý ƒ!ÝÝ  Ý ÷Ý ƒ¯"ÝÝ  ÝÔ€X†2XXXÔÔ€ÙMXX†2ÔÓ  Óò òÔ Ad ÔFILEDÔ€X†2XÙMÔÐ  ÐÌJuly€1,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó,c½¬AZ‹"Arial Regular!#$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5 d(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxdüÿP Pd""""'ÿÿdxdÝ ƒ!ÝÝ  Ýñ% ñ›ñ% ñÔ‡X†XXXÔÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÑ  ÑÓ  ÓÑ7€,€XXdðXXdð7Ñò òÓ °§X°œXÓñ/ ññ% ñßr€ )<,(j 8` `€€@Eȱ` 8ttxP°ð  rßñ% ññ/ ññ/ ññ/ ññ% ñ›ñ% ñà@ ìàIN€THE€COURT€OF€APPEALS€OF€TENNESSEEó óˆÐ ° Ðò òñ/ ñœßt€ )>.*jx+I` `€€@Eóå` 8ttxP+œð I tß›ñ/ ñà@úú$ìàAT€NASHVILLEˆÐ œì Ðà  àà ` àà ¸ àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ð ˆØ ÐÌóóÌHBO€DIRECT,€INC.,€€€€€€€€€€€€€€€€€€€€à h àà À à)à  àà p àÐ L œ Ðó óà  àà ` àà ¸ àà  àà h àà À àò ò)ó óÐ 8 ˆ Ðà  àPlaintiff/Appellee,à  àà h àà À àò ò)à  àó óDavidson€Chancery€No.€97„1688„IÐ $ t Ѐ€€à  àò òà ` àà ¸ àà  àà h àà À à)ó óà  àà p àÐ  d Ðò òv.à  àà ` àà ¸ àà  àà h àà À à)à  à€Ð  T  Ðà  àà ` àà ¸ àà  àà h àà À à)à  àó óAppeal€No.€01A01„9804„CH„00221ò òÐ ð @  МRUTH€E.›€JOHNSON,€Commissioner€of€à À à)à  àÐ à0  ÐRevenue,€State€of€Tennessee,à h àà À à)Ð Ì  Ðà  àà ` àà ¸ àà  àà h àà À à)Ìà  àó óDefendant/Appellant.à  àò òà h àà À à)Ð ¤ô  ÐÌÌÌà@ìàó óAPPEAL€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTY€€ˆÐ X¨ Ðà@ÁÁìàAT€NASHVILLE,€TENNESSEEˆÌÌÌà@ÿ ÿ ìàTHE€HONORABLE€IRVIN€H.€KILCREASE,€CHANCELLORˆÌòòÌÌÌFor€the€Plaintiff/Appelleeóó:òòà  àà h àà À àFor€the€Defendant/Appellantóó:€òòÐ ¸ ÐÌóóCharles€A.€Trost€€€€€€à ¸ àà  àà h à€€€€€€€€€€€€John€Knox€Walkup€€€€€€Ð à ÐMichael€G.€Stewart€€€€à  àà h àà À àSteven€D.€Thomas€€€€€€€€€€€€€€€€Ð |Ì ÐNashville,€Tennesseeà ¸ àà  àà h àà À àNashville,€TennesseeÐ h ¸ ÐÌBernard€NashÌLeslie€R.€CohenÌLaura€B.€œFeiginÌAppearing€Pro€Hac€Vice›ÌWashington,€D.C.Ì€€€€€€€€€€€€€€€€€€€€ÌÌÌò òÌà  àà ` àà ¸ àà  àà h àà À àAFFIRMEDÌÌÌà  àà ` àà ¸ àà  àà h àà À àó óHOLLY€KIRBY€LILLARD,€J.Ð P- (, ÐÌÌÌCONCURS:ÌòòÌóóBEN€H.€CANTRELL,€J.Ð Ø2(.2 ÐÌWILLIAM€C.€KOCH,€JR.,€J.Ô#†X,€XXX†&#ÔÔ‡X†XXX,€ÔÐ  °404 ÐØØÑ7€,€XXdðXXdð7ÑÑ  Ñà  ààHàò òˆà@66'ìàOPINIONˆÐ ° Ðó óÌÓÓœà  àThis›€case€involves€a€contest€of€Tennessee€sales€and€use€tax€assessed€by€the€defendantÏTennessee€Commissioner€of€Revenue.€€The€plaintiff€œsatellite€programming›€television€œcompany›Ïargues€that€its€services€are€not€taxable€telecommunications€because,€as€ð ðbroadcast[s]€.€.€.€for€publicÏconsumption,ðð€œthe€satellite›€television€services€are€excluded€from€the€definition€of€taxableÏtelecommunications.€€The€trial€court€granted€summary€judgment€in€favor€of€the€plaintiff€œsatelliteÏprogramming›€television€company.€€The€defendant€Commissioner€appeals.€€We€affirm.Ìà  àPlaintiff/Appellee€HBO€Direct,€Inc.€(HBO)€provides€direct„to„home€television€service€toÏsubscribersðð€homes€through€satellite€technology.€€Ô#†X,€XXX† #ÔÔ‡X†XXX,€ÔIts€television€programming€services€are€transmittedÐ pÀ Ðby€satellite€to€individual€satellite€dishes€located€at€subscribersðð€residences.€€Subscribers€makeÏperiodic€payments€for€HBOððs€services€and€must€have€a€satellite€dish€to€receive€the€services.€ÏNonsubscribers€are€prevented€from€receiving€the€services.€€Ìà  àIn€1997,€the€Defendant/Appellant€Tennessee€Commissioner€of€Revenue€(Commissioner)Ïaudited€HBO€and€issued€a€notice€of€assessment€for€sales€and€use€tax€for€the€period€from€August€1994Ïto€November€1996.€€The€notice€of€assessment€was€adjusted€on€July€25,€1997€for€a€total€tax€ofÏ$639,849.€€In€addition,€HBO€was€fined€a€penalty€of€$159,965€and€interest€of€œ$88,555.€€The€totalÏdeficiency€therefore€was€$888,369.›€€Ìà  àThe€Commissioner€assessed€the€taxes,€penalty€and€interest€pursuant€to€the€Retailersðð€SalesÏTax€Act,€which€taxes,€among€other€œthings,›€ð ðtelecommunications.ðð€€€òòò òSee€óóó óTenn.€Code€Ann.€ðððð€67„6„Ð à%0!$ Ð101€to€67„6„713€(1998).€€Tennessee€Code€Annotated€ðð€67„6„102(30)€defines€ð ðtelecommunicationsðð:ÌÒ°ÒÒ°ÒÓô Ó(A)à ` àð ðTelecommunicationðð€means€communication€by€electric€or€electronicÐ )à$( Ðtransmission€of€impulses;ÌÌ(B)à ` àð ðTelecommunicationsðð€includes€transmission€by€or€through€any€media,€suchÐ T,¤'+ Ðas€wires,€cables,€microwaves,€radio€waves,€light€waves,€or€any€combination€of€thoseÏor€similar€media;ÌÌ(C)à ` àExcept€as€provided€in€subdivision€(D),€ð ðtelecommunicationsðð€includes,€butÐ 0T+/ Ðis€not€limited€to,€all€types€of€telecommunication€transmissions,€such€as€telephoneÏservice,€telegraph€service,€telephone€service€sold€by€hotels€or€motels€to€theirÏcustomers€or€to€others,€telephone€service€sold€by€colleges€and€universities€to€theirÏstudents€or€to€others,€telephone€service€sold€by€hospitals€to€their€patients€or€to€others,ÏWATS€service,€paging€service,€and€cable€television€service€sold€to€customers€or€toÏothers€by€hotels€or€motels;ÌÌ(D)à ` à"Telecommunications"€does€not€include€public€pay€telephone€services,Ð d7´27 Ðtelevision€or€radio€programs€which€are€òòbroadcast€over€the€airwaves€for€publicÐ P8 38 Ðconsumptionóó,€coaxial€cable€television€(CATV)€which€is€offered€for€publicÐ <9Œ49 Ðconsumption,€interstate€WATS€service,€private€line€service,€or€automatic€tellerÏmachine€(ATM)€service,€wire€transfer€or€other€services€provided€by€any€corporationÏdefined€as€a€financial€institution€under€ðð€67-4-804(a)(9),€unless€the€companyÐ ÓÓÓà  àThe€statute€at€issue,€Tennessee€Code€Annotated€ðð€67„6„102(30)(D)€exempts€from€sales€andÐ ˆ/Ø*. Ðuse€tax:€ð ðtelevision€.€.€.€programs€which€are€broadcast€over€the€airwaves€for€public€consumptionðð€andÏð ðcoaxial€cable€television€(CATV)€which€is€offered€for€public€consumptionñ! ñ.ñ! ñððñ" ñ€€ñ" ññ# ñ€ñ# ñTennñ$ ñ.ñ$ ñ€Code€Ann.€ðð€67„¼6„102(30)(D)€(1998).€€It€is›€undisputed€that€coaxial€cable€television€services€are€not€consideredÏð ðtelecommunicationsðð€under€Section€67„6„102(30)(D)€and€thus€are€not€taxed€under€the€RetailersððÏSales€Tax€Act.€€It€is€also€undisputed€that€coaxial€cable€television€is€a€fee„based€service€which€non„Ð è8848 Ðsubscribers€are€prevented€from€receiving.€€Thus,€the€phrase€ð ðfor€public€consumptionðð€as€used€in€theÏexemption€for€CATV€services€clearly€includes€a€fee„based€service.€€It€is€a€well€settled€rule€ofÏstatutory€construction€that€ð ðthe€component€parts€of€a€statute€should€be€construed,€if€practicable,€soÏthat€the€parts€are€consistent€and€reasonable.ðð€€òòò òCohen€v.€Cohenóóó ó,€937€S.W.2d€823,€827€(Tenn.€1996).€Ð P   ÐThis€is€particularly€important€in€construing€language€within€the€same€sentence€of€a€statute.€€Ìà  àGiven€the€fact€that€the€statute€exempts€from€the€œdefinition›€of€telecommunications€ð ðcoaxialÏcable€œtelevision›€.€.€.€offered€for€public€consumption,ðð€a€fee„based€service,€it€would€be€incongruentÏto€hold€that€the€phrase€immediately€preceding€this€in€the€statute,€ð ðbroadcast€over€the€airwaves€forÏpublic€consumption,ðð€is€limited€to€only€broadcast€services€which€are€free€to€the€public.€€In€theÏcontext€of€the€Tennessee€statute,€it€is€clear€that€the€phrase€ð ðbroadcast€over€the€airwavesðð€refers€to€theÏmanner€in€which€the€signal€is€disseminated,€not€to€whether€a€fee€must€be€paid€for€the€service.€€ThisÏis€consistent€with€the€ð ðnatural€and€ordinary€meaningðð€of€the€word€ð ðbroadcast.ðð€€ò òòòSee€National€GasÐ P  МDistribs.,›€Inc.€v.€Stateó óóó,€804€S.W.2d€66,€67€(Tenn.€1991).€€Ð 0€ Ðà  àThe€Commissioner€notes€that€coaxial€cable€television,€excluding€basic€service,€is€ð ðseparatelyÏsubject€to€the€sales€tax€as€an€amusement€service.ððœ×ƒ ×Ý ƒ%ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×›€€The€Commissioner€œargues€that€holding›€thatÐ ð@ МHBOððs€services€are€not€taxable€telecommunications€under€the€Retailersðð€Sales€Tax€Act€would€resultÏin€HBO›€paying€less€tax€than€a€coaxial€cable€television€company€and€therefore€having€a€competitiveÏadvantage€over€coaxial€cable€television.€€The€Commissionerððs€interpretation,€however,€would€resultÏin€sales€tax€assessed€on€basic€services€delivered€by€satellite€but€not€by€coaxial€cable.€€Thus,Ïconsideration€of€the€amusement€tax€does€not€indicate€that€the€Tennessee€legislature€intended€servicesÏsuch€as€HBOððs€to€be€considered€taxable€ð ðtelecommunicationsðð€under€Tennessee€Code€AnnotatedÏðð€67„6„102(30)(D).Ìà  àConsequently,€we€conclude€that€HBOððs€services€must€be€deemed€ð ðbroadcast€over€theÏairwaves€for€public€consumptionðð€and€therefore€are€not€taxable€ð ðtelecommunicationsðð€underÐ Ð/ +. ÐTennessee€Code€Annotated€ðð€67„6„102(30)(D).€€Accordingly,€€the€trial€courtððs€grant€of€summaryÏjudgment€in€favor€of€HBO€is€affirmed.€€ò ò€ó 󀀀Рà Ðà  àœThe›€decision€of€the€trial€court€is€affirmed.€€Costs€are€taxed€to€Appellant,€for€which€executionÏmay€issue€if€necessary.ÌÌÔ‡XÆJXXXìÕÔÓÓà  àà ` àà ¸ àà  àà h àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ð `  Ðà  àà ` àà ¸ àà  àà h àò òóóHOLLY€KIRBY€LILLARD,€J.Ð üL  Ðó óà  àò òÌCONCUR:ÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ð ˜è ÐóóBEN€H.€CANTRELL,€J.Ð „Ô ÐÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ H˜ ÐWILLIAM€C.€KOCH,€JR.,€J.ó óÔ#†XìÕXXXÆJæs#Ô