Taxachusetts to Tax Satellite Television

Update 3 March 2010 (We have a distinguished visitor):

Domain Name		state.ma.us ? (U.S.)
IP Address		146.243.4.# (Commonwealth of Massachusetts)
ISP		Commonwealth of Massachusetts
Location		Continent  :  North America Country  :  United States  (Facts) State  :  Massachusetts City  :  Boston

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Wouldn't you know it...

I finally got rid of the cable television (a big move for me) and got me one of those satellite dishes that you see sprouting up all over the country. I see them everywhere; even at the campgrounds. I mention that because we have a travel trailer and the package deal we got included an extra dish for trailer for only $5.00 more per month.
After a somewhat lengthy installation (about 4 or 5 hours) for for both systems we decided to run out to the nearest campground to test my ability to set the dang thing up by myself (the installer was not a whole lot of help with instructions for greenhorns). In any event I fiddled with the dish antenna that comes with it's own tripod and got connected to that high tech gadget in the sky (It's really spaced out there a bit!).
Getting back to my opening line...
Wouldn't you know it, the very first station that came into view had the headline, "Massachusetts to impose tax on satellite TV!" Wow! I didn't know they could do that!
The Communications Act of 1934 (to the best of my knowledge is still in effect) gave the airways to the people. That's why you don't have to pay for AM, FM, shortwave, or regular television broadcasts. I don't remember which president said it but I do recall hearing one say, "Anything going out over the air and into a receiver should be free to the public (transmitting is another story). Which leads me to think, "Why do we have to pay for satellite TV or radio for that matter. If we can buy AM-FM radios and other receivers to listen and/or watch, then why cannot we simply buy our own satellite dishes and receiver's and get what's coming in free as the Act was intended? Well I'm sure we won't get around the use fee for the satellite so I can understand that's the way it is and that's the way it's going to be.
But the tax! That shouldn't be! If this legislation is approved by the Taxachusetts politicians, then what's stopping the other states from joining the revenue trough?
The story below hints of some kind of backdoor politics that will ultimately serve only the politicians and the consumer be damned...hey there cable companies, didn't you ever hear of competitive pricing? - Norman E. Hooben

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Cable Industry Lobbies to tax Satellite TV

Cable is out to strike a blow against satellite TV. They are pushing for a bill in Massachusetts that would tax Satellite Television 5% under the terms of a proposed House bill, a move the cable TV industry is pushing because satellite providers such as DirecTV are competing with them for subscribers.

The proposal bill would officially levy the tax on both cable and satellite TV users. But there is a catch, but wording in the bill, which is written by the cable industry, would then nullify the charge for cable subscribers because they already pay up to 5 percent in so-called franchise fees.

Cities and towns have traditionally charged cable companies the fees to compensate a community for stringing wires and digging up roads to provide their service. And therefore the tax on cable television is justified. Massachusetts regulators have directed that the money be used for public access programming such as televised city council and selectmen meetings.

Satellite companies have been spared the fees both because they came into existence after the fees were created and because their service does not rely on public infrastructure such as roads and utility rights of way. Since they are not using the community infrastructure, why should they pay the same tax as cable?

``These guys can't compete fairly in the marketplace so, in our view, they have attempted to impose these taxes to gain a competitive advantage,'' said Robert Mercer, a spokesman for DirecTV satellite television.

``We don't tear up the city infrastructure,'' Mercer added. ``Our infrastructure is 22,300 miles in space.'' In fact, satellite TV must pay for their own infrastructure of satellite communication.

A cable industry spokesman acknowledged the aim of the bill is to raise the price of satellite TV bills, since satellite television has increasing taken away market share from the cable industry.

If you are a subscriber to satellite television in Massachusetts contact your local representative and voice your disagreement over this bill.

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