Steve Mehs
06-12-03, 04:16 AM
Andy Wright, president of the Satellite Broadcasting and Communications Association, responded to comments from Ohio Tax Commissioner Tom Zaino about legislation that proposes a tax on satellite TV services.
Wright reiterated the satellite TV industry's claims that a satellite TV tax wouldn't hold up in a court challenge. Wright said he agrees with Zaino's statement that a constitutional challenge to a satellite-only tax "has a significant chance of success."
Wright added, "Our view is and has always been that legally, a state may apply its sales tax to both cable and satellite, or to neither." Wright's comments came after Zaino told a conference committee that a satellite-only tax may not hold up under a constitutional challenge.
"We prefer that Ohio tax neither cable nor satellite subscribers, but we recognize that legislators and the governor will make that determination," he added.
As for proposing a tax to generate revenues for a cash-strapped state budget, Wright said taxing only satellite customers makes no sense. "It punishes one set of pay-TV consumers over another, and because of the strong constitutional issues, it is unlikely to generate revenue in the short or long term," he said.
Wright urged Ohio lawmakers and the governor to eliminate the tax on satellite in the current budget bill.
From SkyReport (http://www.skyreport.com) (Used with Permission)
Wright reiterated the satellite TV industry's claims that a satellite TV tax wouldn't hold up in a court challenge. Wright said he agrees with Zaino's statement that a constitutional challenge to a satellite-only tax "has a significant chance of success."
Wright added, "Our view is and has always been that legally, a state may apply its sales tax to both cable and satellite, or to neither." Wright's comments came after Zaino told a conference committee that a satellite-only tax may not hold up under a constitutional challenge.
"We prefer that Ohio tax neither cable nor satellite subscribers, but we recognize that legislators and the governor will make that determination," he added.
As for proposing a tax to generate revenues for a cash-strapped state budget, Wright said taxing only satellite customers makes no sense. "It punishes one set of pay-TV consumers over another, and because of the strong constitutional issues, it is unlikely to generate revenue in the short or long term," he said.
Wright urged Ohio lawmakers and the governor to eliminate the tax on satellite in the current budget bill.
From SkyReport (http://www.skyreport.com) (Used with Permission)