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Senate passes replacement tax on multichannel video and audio services to help close budget gap
Summary
The Senate voted to repeal the prior cable tax and adopt a 6.25% multichannel video/audio services tax that equalizes taxation of cable and satellite subscriptions. Sponsors said it yields roughly $4.45 million to help balance the state budget; opponents questioned local revenue impacts.
The Utah Senate advanced and passed Senate Bill 195 on March 1, a measure that replaces last year’s cable‑tax arrangement with a 6.25% multichannel video and audio services tax.
Sponsor Senator Wadduffs said the bill would repeal the prior cable tax mechanism and impose a uniform 6.25% state tax on multichannel video and audio services, producing an estimated $4.445 million that is intended to help balance the supplemental appropriations bill. The change narrows disparities between cable and satellite taxation, which had produced different collection outcomes when local and state shares were combined and some satellite revenues had previously been difficult to collect.
Senators asked for and received fiscal information on the projected revenue impact and local‑share effects; the sponsor said cities would see a roughly $3 million change in local receipts. Senator Blackham said the bill was necessary to secure Senate Bill 1 (the 'bill of bills') and that failure to pass SB195 would require finding alternative revenue or cutting programs.
Under suspension of the rules the Senate read SB195 for second and third time and passed it to the House for consideration. The floor recorded 19 ayes, 6 nays and 4 absent; the bill moves to the next stage in the legislative process.
