Ugh! It looks like they are going to start taxing DBS providers as well. Ugh!
Source
RICHMOND -- The House of Delegates gave preliminary approval Wednesday to legislation that would replace a hodgepodge of state and local telecommunications taxes with a flat 5 percent levy and apply the same rate to services such as satellite television and radio, which currently are not taxed.
Key Republican lawmakers also rolled out compromise legislation that would allow Verizon Communications Inc. and other telecommunications companies to compete in the cable television business in Virginia for the first time, opening the door for greater competition.
The House is expected to hold a final vote on the tax legislation today. The bill (HB 568) would apply a uniform 5 percent tax to local and long-distance telephone service, wireless communications, cable and satellite television and voice-over Internet service. The state would collect the tax and refund cities and counties for their shares of revenue -- about $425 million -- lost in the elimination of local taxes.
"It's simple, it's easy to understand," said the bill's sponsor, Del. Sam Nixon, R-Chesterfield County.
Nixon said the changes would modernize and simplify a taxing scheme developed before the widespread availability of cable, wireless and satellite technologies.
The House advanced the bill Wednesday without taking a recorded vote. The bill cleared the House Finance Committee on Monday, with several rural legislators voting against the measure. Some rural lawmakers argue that their constituents, particularly satellite television customers, would be penalized by the changes. The satellite TV industry also opposes the legislation.
"So many of my constituents are satellite subscribers," said Del. Ben Cline, R-Rockbridge County, who voted against the bill in committee.
The changes would reduce taxes on land-line and wireless telephone services in most Roanoke and New River valley localities, according to data compiled by the Virginia Telecommunications Industry Association. But most satellite television customers in those areas would see a slight increase in their overall tax bills after all the changes take effect next January.
On another front, key lawmakers announced a compromise Wednesday on legislation (HB 1404) allowing Verizon and other telecommunications firms to offer video services. The deal holds the potential of increasing competition for cable television services and expanding the area where choice is available over the next decade, said House Majority Leader Morgan Griffith, R-Salem.
"I am obviously pleased the cable competition, a long-standing goal, will soon become a reality for Virginia consumers," said Griffith, who worked with other House and Senate sponsors to craft a compromise bill.
The bill has been assigned to the House Commerce and Labor Committee.
To gain access to the television competition, telecom firms such as Verizon would have to expand their networks specified levels in local franchise areas, preventing them from limiting service to affluent markets. The prospect of Verizon cherry-picking its TV customers was a chief concerns of cable television providers. Local governments will retain an oversight role in monitoring the service, Griffith said.
"Virginia is one of several states currently examining ways of expanding consumer choice for cable services, so an agreement here may very well serve as a model for other states dealing with this issue," Griffith said.
Source
RICHMOND -- The House of Delegates gave preliminary approval Wednesday to legislation that would replace a hodgepodge of state and local telecommunications taxes with a flat 5 percent levy and apply the same rate to services such as satellite television and radio, which currently are not taxed.
Key Republican lawmakers also rolled out compromise legislation that would allow Verizon Communications Inc. and other telecommunications companies to compete in the cable television business in Virginia for the first time, opening the door for greater competition.
The House is expected to hold a final vote on the tax legislation today. The bill (HB 568) would apply a uniform 5 percent tax to local and long-distance telephone service, wireless communications, cable and satellite television and voice-over Internet service. The state would collect the tax and refund cities and counties for their shares of revenue -- about $425 million -- lost in the elimination of local taxes.
"It's simple, it's easy to understand," said the bill's sponsor, Del. Sam Nixon, R-Chesterfield County.
Nixon said the changes would modernize and simplify a taxing scheme developed before the widespread availability of cable, wireless and satellite technologies.
The House advanced the bill Wednesday without taking a recorded vote. The bill cleared the House Finance Committee on Monday, with several rural legislators voting against the measure. Some rural lawmakers argue that their constituents, particularly satellite television customers, would be penalized by the changes. The satellite TV industry also opposes the legislation.
"So many of my constituents are satellite subscribers," said Del. Ben Cline, R-Rockbridge County, who voted against the bill in committee.
The changes would reduce taxes on land-line and wireless telephone services in most Roanoke and New River valley localities, according to data compiled by the Virginia Telecommunications Industry Association. But most satellite television customers in those areas would see a slight increase in their overall tax bills after all the changes take effect next January.
On another front, key lawmakers announced a compromise Wednesday on legislation (HB 1404) allowing Verizon and other telecommunications firms to offer video services. The deal holds the potential of increasing competition for cable television services and expanding the area where choice is available over the next decade, said House Majority Leader Morgan Griffith, R-Salem.
"I am obviously pleased the cable competition, a long-standing goal, will soon become a reality for Virginia consumers," said Griffith, who worked with other House and Senate sponsors to craft a compromise bill.
The bill has been assigned to the House Commerce and Labor Committee.
To gain access to the television competition, telecom firms such as Verizon would have to expand their networks specified levels in local franchise areas, preventing them from limiting service to affluent markets. The prospect of Verizon cherry-picking its TV customers was a chief concerns of cable television providers. Local governments will retain an oversight role in monitoring the service, Griffith said.
"Virginia is one of several states currently examining ways of expanding consumer choice for cable services, so an agreement here may very well serve as a model for other states dealing with this issue," Griffith said.
