Chris Blount
02-09-04, 05:44 AM
The Arizona Legislature is debating a bill that would levy a 4.5 percent surcharge on residential subscription TV service providers, putting the money collected into a First Responders Fund used for homeland security communications and response throughout the state.
At the moment, both cable and satellite TV are subject to the proposed tax. And both sides are lobbying state lawmakers on which service should take the brunt of the levy.
A fact sheet on Senate Bill 1148 states cable operators already are assessed city and county license fees of five percent on gross revenues, plus additional taxes in a number of Arizona municipalities. The fact sheet, authored by Senate staff, also points out that federal law prevents local entities from assessing a tax on satellite TV services.
However, the memo states that federal mandates authorize a state to impose and collect sales and similar taxes on DBS services, and permits a state to distribute all or some of those revenues to cities and counties.
At the moment, the state of Arizona does not tax DBS services.
http://www.skyreport.com (Used with permission)
At the moment, both cable and satellite TV are subject to the proposed tax. And both sides are lobbying state lawmakers on which service should take the brunt of the levy.
A fact sheet on Senate Bill 1148 states cable operators already are assessed city and county license fees of five percent on gross revenues, plus additional taxes in a number of Arizona municipalities. The fact sheet, authored by Senate staff, also points out that federal law prevents local entities from assessing a tax on satellite TV services.
However, the memo states that federal mandates authorize a state to impose and collect sales and similar taxes on DBS services, and permits a state to distribute all or some of those revenues to cities and counties.
At the moment, the state of Arizona does not tax DBS services.
http://www.skyreport.com (Used with permission)