House amends and re-passes satellite and cable tax bill after technical fix

Representative Jay Alexander, floor sponsor, explained to the House that Senate Bill 195 would repeal the satellite-and-cable tax enacted last year and replace it with a state excise tax assessed at 6.25 percent. He said the change brings previously local revenue into a state-administered excise and would reduce the cable side from 6.6 percent to 6.25 percent while consolidating the local portion into the new state levy. Alexander also noted the bill would be sent to the Revenue and Taxation interim committee for study of implementation details.

Representative Daniels questioned whether the change 'found a way around' the prior federal limitation that had prevented local taxation of satellite service. Alexander responded that by moving taxation to the state level the bill avoids that federal problem and standardizes the treatment across cable and satellite. After limited debate the House recorded an initial tally of 44 yes and 26 no, but floor leaders noted a technical amendment under Representative Steiler's name had been omitted from the enrolled paper.

To correct that omission, Representative Alexander successfully moved to reconsider the House's prior action, and Representative Steiler moved a technical amendment (Amendment #1 dated 03/01/2004) clarifying collection language and referencing section 59-26-103. The House adopted the amendment and voted again on the measure as amended; the amended Senate Bill 195 passed the House with a recorded vote of 42 yes and 28 no and was returned to the Senate.

The measure raises implementation questions for local recipients of prior local satellite/cable allocations; floor debate focused on mechanics and on federal preemption issues rather than on the underlying policy goal of rate equalization. The bill now goes back to the Senate with the technical amendment included.