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CX2ACB > SAT 05.10.03 18:05l 50 Lines 2230 Bytes #-7690 (0) @ AMSAT
BID : ANS-278.06
Read: GUEST
Subj: Satellite TV Networks Sue North Carolina Over Unfair Sales T
Path: DB0ZKA<DB0BOX<DB0MRW<DB0SIF<DB0EA<DB0RES<ON0BEL<CX2ACB
Sent: 031005/1550Z @:CX2ACB.MVD.URY.SA #:29032 [Montevideo] $:ANS-278.06
From: CX2ACB@CX2ACB.MVD.URY.SA
To : SAT@AMSAT
AMSAT News Service Bulletin 278.06 From AMSAT HQ
SILVER SPRING, MD. October 5, 2003
To All RADIO AMATEURS
BID: $ANS-278.06
DirecTV, Inc. and EchoStar Satellite Corporation and its DISH Network,
the nation's largest providers of satellite TV services, have filed a
lawsuit against North Carolina as part of a nationwide campaign to
challenge unfair taxing policies that discriminate against satellite TV
providers while benefiting local cable TV firms.
The lawsuit, filed against the state's Department of Revenue and other
entities, challenges the constitutionality of North Carolina's taxing
policies under the Commerce Clause of the United States Constitution,
which prohibits state taxes that discriminate against interstate
commerce, or are not fairly related to the services provided to the
taxpayer.
North Carolina has a 5 percent sales tax on satellite TV services, but
no sales tax on cable TV services. The lawsuit was filed Tuesday in the
Superior Court for Wake County in Raleigh, N.C.
DISH Network and DirecTV provide multi-channel video programming via
direct-to-home satellite television service, which is also known as
direct broadcast satellite (DBS) service, not only to subscribers in
North Carolina, but to viewers throughout the United States. However,
the local cable companies, which are the dominant providers of
multi-channel video programming in the state, are not similarly
subjected to the state's sales tax and, as such, are given an unfair
competitive edge through these discriminatory taxing policies, the
lawsuit states.
Following North Carolina's procedures, prior to going to court the
satellite providers requested a refund for their customers in the state
of approximately $30 million, a required first step in challenging the
discriminatory sales tax on satellite TV service. The State Department
of Revenue rejected the request; and the required 90-day waiting
period for filing a lawsuit after requesting a refund has expired.
Similar discriminatory taxing policies exist in Tennessee and Ohio,
which also were sued by EchoStar and DirecTV on August 19 and June 26,
respectively.
[ANS thanks Space Daily for the above information.]
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