DIRECTV and DISH Network File Suit in Tennessee Challenging Discriminatory Taxes

[John Corn]

Action Follows Related Moves In Ohio and North Carolina to Abolish Taxes That Favor Incumbent Cable Operators


NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 19, 2003--DIRECTV, Inc. and EchoStar Satellite Corporation and its DISH Network, the nation's largest providers of satellite TV services, have filed a lawsuit against the Commissioner of Revenue of the State of Tennessee challenging the sales tax imposed by Tennessee on direct broadcast satellite (DBS) customers. The sales tax is not imposed equally on local cable television customers, even though satellite television companies compete with incumbent cable operators in the same market.
The lawsuit was filed today in the Chancery Court of Davidson County.

The Tennessee statute imposes an 8.25 percent sales tax on the entire amount of satellite customers' monthly subscription fees, whereas customers of cable operators are exempted from the tax on the first $15 of their subscription fees. The result is a higher tax on satellite customers than on the customers of competing cable companies.

http://biz.yahoo.com/bw/030819/195071_1.html

[durl]

They finally are addressing satellite taxes in my state!!!

Tennessee has an incredibly high sales tax rate (over 9% on most items) so you can imagine how it feels to pay almost $10 a month just for the tax being charged for the air over my house.

A little info: Tennessee has no state income tax (thankfully) and we just defeated many attempts by our legislature to pass one. They ever resorted to closed-door sessions which are illegal but word always got out (thanks to our great talk-radio in the capital city) and people swarmed the state house. So the high sales tax is part of what we put up with rather than an income tax that would be raised every year.

I cringe every time I see how much I pay in tax just because I use DBS at my home. It's just plain wrong to charge me extra. Thing is, the legislature here in Tennessee is so tax-happy, I'm sure they'll just pass a new tax on cable to even things out rather than give up the DBS tax revenues. Geez, they'll probably thank the lawyers for giving them a chance to raise taxes for cable.

[Chris Freeland]

I have to say I am embarrassed that I did not know that I was paying a bigger sales tax on satellite here in TN then my friends with cable, I am usually well informed on such matters :shrug: . When I first moved to the Chattanooga area back in 95, cable did not pass my house until a couple of weeks after I got E*, Comcast called and informed me that I could now get cable at my home, I took great joy in telling them no thanks I have satellite :D , so I have never had cable here in TN. Last time I had cable tv was when I still lived near Orlando, FL. Now that I know, GO E* and D* ;) , if E* and D* can get this tax discrimination repealed I can save a buck or two every month ;) .

[Jtater]

I wondered if we were ever going to rate as high as some other states on the list for the sat taxes. Like it was already said our sales is pretty high but we rank as one of the top 5 least taxed states in the country.

[catman]

If, tennisee does not watch it . That is unfare tax . tax cable . RIAA is a problem .

[durl]

How is RIAA the problem? It's not an issue for the recording industry, it's local, monopolistic cable companies greasing the palms of politicians in order to get unfair taxes passed in order to help them maintain their monopoly.