Posted on 02/01/2005 9:41:26 AM PST by UseYourHead
The fate of a sweeping telecommunications-tax-reform proposal might hinge on the impact that it were to be seen as having on 700,000 satellite-television subscribers in the Commonwealth.
House Bill 2880, introduced last week by Chesterfield Republican Del. Sam Nixon, would change the way telecom taxes are collected and distributed in the Old Dominion and would spread the tax burden from traditional communications-system users to a wide spectrum of communications consumers.
It is there that the satellite-TV sector comes into the picture. DirecTV subscribers in Virginia have known about the changes coming on the horizon since before the start of the General Assembly session on Jan. 12. A message detailing what was in the works in the state legislature has appeared on the satellite provider's channel 246 - the on-screen guide located between TNT and TBS - dating back to the early part of the month.
At the top of the TV screen on channel 246 is the message "Fight the satellite tax in Virginia." The text below advises viewers that "state representatives are considering legislation requiring a proposed 5 percent tax on satellite TV. To see how Virginia residents can help stop this unfair satellite-TV tax, log on to www.stopsatellitetax.com."
"We felt it was in our best interests to bring this to the attention of our subscribers so that they could let their legislators know how they feel," DirecTV spokesman Bob Marsocci told The Augusta Free Press.
And the subscribers have been in touch with their representatives in Richmond.
"We've taken a number of calls from satellite subscribers, and when I explain to them that the goal here is to have this be revenue neutral, meaning that when they see an increase in the tax they pay on satellite-TV services, it's going to be offset by the decrease in, say, the tax on their telephone bill, they understand," said Cynthia Haake, Del. Nixon's legislative assistant.
Nixon's bill calls for the levying of a 5 percent across-the-board state tax on telecommunications services including landline and wireless phone service, voice-over-the-Internet service, cable-TV and satellite-TV service and more.
"We're constantly developing new communications tools," Haake told the AFP. "For example, more and more people are going to be using devices on their home computers that they can plug in to have phone conversations. That's something that you couldn't have dreamed of doing just a few years ago," Haake said.
The telecommunications tax structure that is in place now, not surprisingly, charges some telecom users - landline phone customers, for one, and cable-television subscribers - while allowing those who use voice-over-the-Internet and satellite-TV services to get off virtually scot free.
"I understand why the satellite-TV companies don't want to have to deal with this. They just don't want to see the tax put into effect," Haake said.
It is actually a bit more complicated than that, Marsocci said.
"One argument that we hear lobbed around is that cable operators pay franchise fees, so it's only fair to assess this tax on satellite-TV companies," Marsocci said.
"The problem is the cable companies pay franchise fees as a cost of doing business. The reason for this is that they use a city's infrastructure or a state's infrastructure by digging trenches in the street to lay its cable and using telephone poles to get the cable to their customers," Marsocci said.
"We do not impose a burden on states or municipalities in the same way. We beam our programming off satellites located 22,000 miles above the Earth and into our customers' living rooms," Marsocci said.
On the Web
>> www.stopsatellitetax.com
>> www.directv.com
>> http://legis.state.va.us
What's next a tax on listening to the radio?
Only if you have satellite FM, they can't tax what comes over the air.
How much is ENOUGH ! ... MY God will they ever STOP raising TAXES ?
They were thinking about this in Utah, until someone pointed out there was a federal regulation against it. Sorry, don't remember the details.
When did the state of Virginia begin launching satellites into orbit?
Oh, they haven't? So why do they think they can tax satellie reception?
They're already taxing the electricity, the house, and the land of the owner, and the salary of the installer.
As a TarHeel resident, I yearn for the lesser tax burden you Virginians enjoy. Our legislature has just met and it is already considering a 1/2 cent increase in sales tax and big boost in ciggie tax. We're still under a temporary sales tax increase that should have expired three years ago. NC Residents pay 7% sales tax, more on prepared foods, and still have an income tax that tops out at 8 1/4% with no special treatment for cap gains. Plus, your kids cannot ride bikes in the streets without a helmet, kiddies under 12 MUST wear life jackets the whole time the boat is underway, car seat REQUIRED for up to 8 yrs or 80 pounds, and now they're proposing a law prohibiting kids 12 and under from riding on (not driving, riding on) 3 and 4 wheelers. It's Tax Us To Death and legislate common sense down here.
Just get a FTA satellite. Once you buy the dish, no services to pay for. I pick up a dozen Arabic channels plus dozens more in other languages plus NASA and more.
I've thought of doing that, just to see what kind of broadcasts I might be able to snag... Unfortunately I don't speak Arabic, and they don't broadcast anything worth watching, anyway...
a state with a 1.3 billion dollar surplus wants even more
Well, then, honey, your employers, the citizens who pay your salary, have the gullibility of children, and are dumb as posts.
Once a new tax is instituted, even if revenue neutral, before too long the initial tax is back to its prior level always, and without exception and a new tax now exists which can be manipulated upwards forever...
Gheeez. Is it really necessary to keep pointing this out?
Shouldn't "Commonwealth" have been tossed into the sea with King George a long time ago?
I live in VA (active duty Army) - and I am so glad I am a Texas resident and do not have to pay VA taxes!!!
What a tax-happy "communewealth"!
Now, the tax burden does vary by county - I live in Fairfax County - very, very high! In a token statement of fairness - Virginia has very nice roads, parks, facilities, etc. It's not a bad place to live, all-in-all.
Still - I'd hate to pay the yearly tax on my Tahoe!!!
I sent a nice little e-mail to Delegates Nixon and Bryant (co-sponsors) last night.
They just don't get it. Just because something isn't being taxed doesn't mean it should be. Landline telecommunications taxes are almost justifiable because there is physical infrastructure to mainatain, easments to be tracked, etc.
Satellite dishes have ZERO infrastructure impact. VOIP services already taxed under current cable and telephone line taxes, so this amounts to double taxation for those services.
There's no physical connection to the state (no cable lines to maintain, no trenching or poles to install), the satellite is in space and the program provider is most likely in another state.
How can the state justify taxing something that they don't own, provide or maintain?
Virginia, you need to rise up now and nip this in the bud...nip it, nip it, nip it!
Like I expressed in my emails to various delegates, this is pure and simple pandering to the Cable Industry - they are mad because Satellite service is better, cheaper and cuts the Cable monopoly loose from my house so they can't sell me substandard phone service or party-line internet access. I asked them if they were ready to be exposed as being in the backpocket of Cable and what benefits they were reaping by taxing a few to kiss up to the big corporations.
We will see if I get a response.
There is more than just Arabic. For a list visit:
http://www.lyngsat.com/freetv/United-States.html
You can also listen to radio stations as well from across the world.
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