Satellite television providers are urging the Vermont Senate to reject a recently resurfaced proposal by some senators to impose an additional 5 percent excise tax on satellite television subscribers. This tax would be an addition to the 6 percent tax already paid by Vermonters making the total tax 11 percent - among the highest in the nation, according to a national trade group. The Satellite Broadcasting and Communications Association said in a statement that this tax hike would hit nearly 100,000 Vermonters who depend on satellite television for news, emergency information and entertainment, costing them millions of dollars.
This tax, the SBCA said is regressive and unfairly impacts low and middle income Vermonters and Vermonters in more rural parts of the state who rely on satellite television. In addition, the tax would hit small businesses in the hospitality, hotel and restaurant sectors. The cost of doing business for these industries would climb substantially due to the number of televisions at their place of business.
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Roland Jost, owner of Jost Electric, Electronics & Antenna Service in Morrisville is a local Vermont DISH and DIRECTV provider that employs skilled Vermonters who know their community and care about providing great service.
“We pride ourselves on offering great satellite television service to our friends and neighbors and this tax represents a significant burden on our business and our valued customers,” said Jost. “This tax is unfair to the businesses who provide these services and the Vermonters who rely on them. The cost of living and doing business in Vermont is already so high. I urge the Senate to please reject this tax.”
Facts about the Satellite Tax Hike proposal:
- The Senate proposal would raise Vermont’s satellite tax on 100,000 satellite subscribers by 5%, bringing it to 11 percent – one of the highest television taxes in the nation.
- Cable pays rent in the form of franchise fees for the right to dig up public streets and sidewalks to deliver their service. Satellite TV does not pay franchise fees for one simple reason: Satellite TV uses innovative technology that does not require the use of the public rights-of-way.
- Since 2009, the cable industry has tried to pass similar legislation over 53 times in 28 states. State legislatures across the country have rejected this regressive and unfair tax time and time again.
- Opponents of this proposal include: Satellite Broadcasting and Communications Association (SCBA), DIRECTV, DISH, local satellite retailers, installers and subscribers all across Vermont.
“We believe this tax discriminates against families and businesses that rely on satellite television,” said Damon Stewart, Vice President, State Government Affairs, DIRECTV. “People with few competitive choices, such as those who live in rural areas, should not be forced to pay higher taxes simply because the cable industry wants to gain a competitive advantage and make larger profits at their expense.”
“States across the country have recognized the unfair, discriminatory nature of these cable-backed satellite taxes.” Said Elizabeth Williams, Government Affairs Liaison for DISH. “The cable industry benefits from their franchise agreements, yet they keep trying to shift those costs to other Vermont consumers when they can least afford it. That’s why this maneuver has failed time and again across the country.”
Satellite TV in Vermont:
- Serves 98,915 households in Vermont (almost half of the homes that subscribe choose satellite)
- Provides over 200 good-paying jobs for Vermonters
- Rural Vermont depends on satellite TV since cable does not often provide service to their area
- Satellite TV offers a wider range of foreign language programming in comparison to cable
About SBCA
The Satellite Broadcasting and Communications Association is the national trade organization representing the consumer satellite industry. It is committed to creating value added programs to promote growth and sustainability of our member companies through member benefits and training. SBCA also provides industry leadership on advocating for consumer access to the best in satellite delivered services and assuring its availability at a fair price. Additional information can be found at www.sbca.org.
Source: SBCA. 4.29.2015