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Senate moves to equalize taxes on cable and satellite services, citing fairness for subscribers
Summary
Senate debated and moved Senate Bill 145 toward third reading; the bill gives cable providers a state excise tax credit while preserving local franchise fees so cable and satellite customers face similar total charges. A fiscal note of about $9.3 million was cited as background to prior objections.
SALT LAKE CITY — Senators voted to advance Senate Bill 145, a bill intended to harmonize taxation between cable and satellite multichannel video and audio service providers.
Senator Niederhauser explained the bill equalizes customer charges by giving cable companies a state excise tax credit while allowing them to continue charging local franchise fees. Under the proposal, customer bills would show a smaller state excise burden for cable customers while satellite customers would continue under the existing excise structure, producing parity between delivery platforms.
Supporters framed the measure as a consumer fairness fix. Senator Goodfellow said ‘‘The History Channel is the History Channel’’ regardless of whether customers receive it by cable or satellite and called parity ‘‘a fairness issue.’’ Sponsor Niederhauser said the fiscal analysts produced a separate, empirical fiscal note estimating revenue impacts (he cited roughly $9.3 million) and that past attempts had been blocked by fiscal concerns.
The Senate placed the bill on the third reading calendar; final funding adjustments and implementation detail will depend on appropriations and the fiscal analysis required by the Legislature.
