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Satellite TV sues to end taxes

February 11, 2010

Satellite television providers say the taxes that seven states levy on their services are unfair. So they're heading to court.

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While they might still snipe at each other in commercials, DirecTV and Dish Network have joined forces in a lawsuit they've filed against Massachusetts.

The
two companies contend the 5 percent tax on satellite services they pay in the Bay State is discriminatory because it applies to them
and not rival cable TV operators.

Cable TV operators pay franchise fees to municipalities because they need access to public property to lay cable lines. The satellite TV companies say they should be exempt from any such tax because they
don't "tear up roads" in getting their programming to customers.

The filing in the Massachusetts state court is just the latest legal action undertaken by satellite TV companies.

A federal bill, H.R. 1019, also is pending in Congress.

The State Video Tax Fairness Act would prohibit any state
from imposing a discriminatory tax on any "means of providing
multichannel video programming distribution services."

As for the term discriminatory tax, the legislation defines it as one where the net tax imposed on one program provider is higher than what is assessed another.

My favorite part of the lawsuit is the reported statement that the tax on satellite television services prompts some subscribers to switch to cable.

Really? Judging from all the complaining I hear about cable systems, these must be ginormous taxes.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Credits/Deductions
Disasters
Family
Filing and Paying Taxes
Politics/Laws
Refunds
State Taxes
Tax Brackets/Inflation
Tax Tips
Comments
  • tax services philippines
    17 years ago Reply

    It is unfair in a sense that the cable operators pay their taxes while those who uses satellite pay nothing but still they get lots of channel. But i don’t think the satellite users should pay. Lets find out what would be the decision on the case.

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