New bill would block state satellite taxes

[FTA Michael]

From Multichannel News http://multichannel.com/article/CA6484097.html

D* and E* are in favor of it. Well, yeah. :)

"The bill, introduced by Reps. John Conyers (D-MI); Chris Cannon (R-Utah); Rick Boucher (D-VA) and Trent Franks (R-AZ) is dubbed the 'State Video Tax Fairness Act of 2007.' It would bar a state from imposing a discriminatory tax on any means of providing multichannel video program distribution services including Internet protocol, direct-broadcast satellite or cable TV services."

In this case, "discriminatory" means based on how the channels are delivered.

[kenglish]

Probably just means taxes will have to rise equally high on all services.

[James Long]

The bill would help if there was a tax specific to DBS but would hurt if there was a tax specific to cable.

It should be recognized that certain forms of delivery cost the state more than others. If the state regulates cable or satellite they should be able to recoup the cost of regulation. Personally I don't see a need for a state to regulate satellite (unless they are licensing installers ... with that the regulation could be paid for out of license fees). Cable has more need of regulation as it uses public right-of-ways for the distribution system.

A tax intended to recoup the cost cable companies impose on a state (either through regulation or road repairs, etc) would now be extended to satellite under this bill. Is that fair?

[kenglish]

Most states look at everything in the "sales tax" vein. They figure, if you (their citizen/taxpayer) bought it, they have a right to a piece of it.