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California-based DirecTV called a proposed tax that could be assessed against satellite TV viewers in the Golden State anti-competitive.
The company said the five percent dish tax is an apparent attempt by the cable industry to gain a competitive advantage by burdening satellite TV customers with a tax that is not imposed on cable TV customers.
The proposed DBS (Direct Broadcast Satellite) tax is included in a budget bill that was narrowly defeated in the California Assembly last week, but which is likely to be re-introduced this week by Assembly Speaker Herb Wesson (D-Culver City). California has more than 2.3 million satellite TV customers, the most of any state, according to SkyTRENDS data.
"As a California-based business, DirecTV is alarmed by this discriminatory move to tax a consumer service in a search for new revenue sources," said Roxanne Austin, president and COO at DirecTV. "If the satellite TV tax is approved, what other consumer services will be taxed next? This may well open the floodgates."
Also, customers pay their fair share of state sales taxes - between $14 and $25 - when they purchase DirecTV equipment, Austin said.
From SkyReport (Used with Permission)
The company said the five percent dish tax is an apparent attempt by the cable industry to gain a competitive advantage by burdening satellite TV customers with a tax that is not imposed on cable TV customers.
The proposed DBS (Direct Broadcast Satellite) tax is included in a budget bill that was narrowly defeated in the California Assembly last week, but which is likely to be re-introduced this week by Assembly Speaker Herb Wesson (D-Culver City). California has more than 2.3 million satellite TV customers, the most of any state, according to SkyTRENDS data.
"As a California-based business, DirecTV is alarmed by this discriminatory move to tax a consumer service in a search for new revenue sources," said Roxanne Austin, president and COO at DirecTV. "If the satellite TV tax is approved, what other consumer services will be taxed next? This may well open the floodgates."
Also, customers pay their fair share of state sales taxes - between $14 and $25 - when they purchase DirecTV equipment, Austin said.
From SkyReport (Used with Permission)