More States Consider Satellite Taxes

[Steve Mehs]

More states are considering taxing satellite TV services in an effort to make up budget shortfalls.

In addition to cable/satellite TV tax proposals in Kentucky and Ohio, state lawmakers in Arizona, California, Connecticut, Nevada and Virginia are considering legislation that would - at the very least - tax DBS services. Andy Wright, president of the Satellite Broadcasting and Communications Association, sent letters to the governors of those states opposing the proposed taxes, the SBCA said in its Report from the President.

The SBCA is using the typical arguments to fight the proposed taxes: It's not fair or logical to increase the cost consumers pay for satellite TV, since it's a national service that does not enjoy a local monopoly, uses no local rights-of-way or services like cable, and doesn't burden the state or local infrastructure. Unless all multichannel providers - including cable operators and telephone service providers - are treated equally in the tax schemes, the tax proposals would be unconstitutional under the Commerce Clause of the U.S. Constitution, the SBCA said in its Report from the President.

The SBCA said it will continue to work with member companies and state lawmakers on future tax proposals.

From SkyReport (http://www.skyreport.com/skyreport/feb2003/021803.shtm#one) (Used with Permission)

[Bogy]

Originally posted by Steve Mehs
Unless all multichannel providers - including cable operators and telephone service providers - are treated equally in the tax schemes, the tax proposals would be unconstitutional under the Commerce Clause of the U.S. Constitution, the SBCA said in its Report from the President.
I don't quite get this part. How many people do not pay taxes on their cable and/or phone bills? Quite substantial taxes on most phone bills. Sounds like a straw man argument to me.

[RichW]

Phone bill taxes go to support certain infrastructures like 911 services, etc. Cable taxes are generally justified because cable uses local rights-of-way, are subject to local government oversight through local cable commisions, and to fund public access channels. Taxing satellite service would be like taxing radio or TV broadcasts. There are absolutely no justification for the tax with regard to services rendered by the state.

[Bill R]

Well said Rich. There is absolutely no reason why states should be allowed to tax satellite services and I hope that satellite subscribers will contact their state reps and let them know how they feel about the proposed unjust tax.

[Bogy]

Rich, I understand that concept, and even can agree with it. But the statement says that the telephone and cable companies should be treated equally under the tax law. (No mention of radio or TV broadcasts) To me this seems to be saying that telephone companies and cable operators are not subject to taxes that are being proposed for DBS companies.

[Keith4USC]

My state (SC) is proposing a 3% tax on satellite dish owners..... This is unreal..... I pay my local tax on the satellite bill...... I guess they gonna make everyone go back to cable.....

[BearsFan]

I have to pay a Florida tax on my D* bill too. Now with the looming D* increase, my new bill + FL St. tax won't be that far off from local AT&T/ComCast cable.

That stinks.

Back in IL, no such taxes existed...and a comparable package from cable was about $10 more than D* (at that time).

This whole taxation on something that's my own property, on my own property, just sounds like another slick way to line politician's pockets. I hate to be that cynical, but I agree...outside of XM/Sirius, what's next? Taxing free radio/OTA TV signals?

I've already written to congresspeople here in FL, and didn't even get a response in protest to the tax.

It's sad. And maddening too.

--BearsFan

[djlong]

Heaven forbid that a state should learn to live within it's means.

(Ok, I'm a smart-aleck living in NH which has no state income or sales tax and we pass a 2-year budget with a part-time legislature that pays each representative approximately $100/year)

[mancow]

Steve, do know the House or Senate bill number for the tax bill in Va? I have looked but can not fine it

[Jacob S]

Is this a tax in addition to sales tax? Its going to start looking like a phone and cable bill with all these extra fees tacked on which will aggervate a lot of customers and may actually cause some loss in subscribers if they get to adding on to many fees. Can you imagine a universal charge for something for someone that just orders locals and pays the $5 minimal fee to Dish or something else that is minimal in comparison?

[Steve Mehs]

No sorry mancow I don't. I did a search on the Va state website earlier this afternoon and some Yahoo surfing a little while ago but nothing solid. Did you try emailing one or all of your senators and reps? Or maybe call state gov't offices.

[mancow]

Steve, I searched the passes, rejected, and carry over, plus all related to taxs and found nothing. I think yesterday was the last day for the general assemble.
Thanks.