# Virginia Governor OKs Tax for Cable, Satellite TV



## Chris Blount (Jun 22, 2001)

Virginia Gov. Tim Kaine signed into law legislation that applies a commonwealth-wide tax on communications services, a levy that impacts both cable and satellite TV.

The law completely revises the taxation of communications services offered in Virginia, with the aim to tax retail communications and video services on a competitively neutral basis. The communications sales and use tax rate will be 5 percent on satellite TV and cable as well as phone, paging, wireless offerings and VoIP services.

Kaine signed the bill along with a package of more than 900 pieces of legislation. The governor had this week to act on legislation passed by the Virginia assembly.

The communications tax takes effect July 1.

Satellite TV companies are weighing their options concerning the tax.

EchoStar said in a statement, "We believe the tax to be unfair to satellite TV customers and we are considering our options for actions to take on their behalf."

Also, in a separate statement, DirecTV said, "We are disappointed that our customers will be required to pay a discriminatory new 5 percent tax in Virginia. We opposed this bill vigorously, but telecommunications companies successfully persuaded policy makers to change taxes on telephone service at the expense of satellite customers. We are reviewing the law carefully to assess whether we will challenge it on constitutional grounds."

http://www.skyreport.com (Used with permission)


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## danm2z (May 18, 2005)

If the tax applies to all video providers, then how is it discriminitory? Because it wasn't taxed before? I have satellite and I have VOIP service. It's true that one of the reasons I went to those services was the lower cost and lack of taxes. However, I've kept them due to the increased convenience and / or quality over their legacy counterparts (cable and POTS).

Various states (including my home state of Virginia) are looking for more sources of revenue as their federal funding is cut off. As long as the rules are applied fairly across a given market space, then they are completely justified in enacting new taxes. I can't say that I like new taxes any more than the rest of you. However, I definitely appreciate the schools, roads, libraries, and security which taxes pay for.


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## kenglish (Oct 2, 2004)

But, we want a "Flat" tax that favours us...............


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## Soonervol (Feb 22, 2005)

kenglish said:


> But, we want a "Flat" tax that favours us...............


The Fair Tax would be a better option... then the cable people on K street wouldn't have such a larger voice.


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## Geronimo (Mar 23, 2002)

I am not saying that I accept this as fact but according to the lawmakers behind this the tax is revenue neutral. In other words it takes taxes collected on services subject to the old tax and then applies a lower rate to a bigger base resulting in the same revenue.

This allowed the Republican candidate for Governor last time to endorse this plan even though he was against new taxes.


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## vurbano (May 15, 2004)

Kaine is the ultimate tax and spend liveral. He wants to raise every tax imaginable eventhough Virginia has a huge surplus in the bank. He even wants a special tax for having your car repaired.  

God help us in Virginia.


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## kc1ih (May 22, 2004)

I think the issue for us is that while Cable TV uses the municipal infrastructure (poles on municipal roads, etc.), satellite TV does not.


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## benjaminmarle (Jun 7, 2002)

vurbano said:


> Kaine is the ultimate tax and spend liveral. He wants to raise every tax imaginable eventhough Virginia has a huge surplus in the bank. He even wants a special tax for having your car repaired.
> 
> God help us in Virginia.


AMEN! In the Hampton Roads area we are being taxed out of house and home. A Norfolk City Council member went as far as to tell the constituents (sp?) to get a second job so they could pay their rising property taxes.


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## Geronimo (Mar 23, 2002)

Kaine signed the bill but it was a republican initiative.


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## Fifty Caliber (Jan 4, 2006)

vurbano said:


> Kaine is the ultimate tax and spend liveral. He wants to raise every tax imaginable eventhough Virginia has a huge surplus in the bank. He even wants a special tax for having your car repaired.
> 
> God help us in Virginia.


See what happens when you elect an ultra-liberal governor.


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## Geronimo (Mar 23, 2002)

Fifty Caliber said:


> See what happens when you elect an ultra-liberal governor.


Yeah he signs bills passed by the conservative General Assembly.


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## datwell (Jan 26, 2005)

Fifty Caliber said:


> See what happens when you elect an ultra-liberal governor.


Yup. You can rest assured that Mr. Kane won the office without my vote! :nono2:

That said, this is essentially a "flat tax" on all parties and so I wonder what viable legal arguments E* & D* could make to a court to have this one overturned? I'm afraid we could be stuck! :eek2:

---Doug


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## Geronimo (Mar 23, 2002)

datwell said:


> Yup. You can rest assured that Mr. Kane won the office without my vote! :nono2:
> 
> That said, this is essentially a "flat tax" on all parties and so I wonder what viable legal arguments E* & D* could make to a court to have this one overturned? I'm afraid we could be stuck! :eek2:
> 
> ---Doug


His opponent endorsed the measure as did the majority of Republican in the General Assembly. It was also sponsored by Republicans.

BTW we are neighbors!


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## Red Dwarf (Aug 25, 2002)

People want services from the government, but then it's unfair to tax to pay for it. The present set of elected republicans are the biggest spenders of all time. Look on the national level. The level of irresponsibility is thought the roof. The idea you can borrow your way out of trouble is ridiculous. We can go to war and to the mall at the same time!:nono2: Liberals aren't the villians here.


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## djlong (Jul 8, 2002)

Excuse me, but what "government services" are you paying for with a satellite TV tax?

Taking my example in New Hampshire. The local cable company pays taxes to the town becuase they have infrastructure here that needs to be protected with fire and police services.

Satellite TV is different - I'm already paying my property taxes for police, fire and schools. There is no incremental liability put upon the local or state government by my reception of satellite TV.

They tax other things that require government services - for example they tax my car - that money goes to roads.

But just looking at something they can tax "just because" is flat-out wrong. When government is providing a service, THAT is what they should be taxing for.

Somehow, we manage to live up here in New Hampshire without a state income tax and without a state sales tax. We have roads, schools, police, fire, garbage removal, hospitals and more - and, gee, Nashua NH was rate by Money Magazine as the best place to live in America - TWICE (1987 & 1997).

We look at things a little differently up here.


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## datwell (Jan 26, 2005)

Geronimo said:


> His opponent endorsed the measure as did the majority of Republican in the General Assembly. It was also sponsored by Republicans.
> 
> BTW we are neighbors!


"Neighbors?" You most unlucky fellow!! What did you ever do to deserve such a fate?

We live in Sleepy Hollow Manor, about half way down Hazelton Street - Just enough to thoroughly trash our OTA reception!!! The big hill of old Fort Buffalo is directly in the line of sight of the Washinton, DC locals and then, when First Virginia built the two bank towers... well, you get the idea. And that's not to mention the beautiful, huge old trees everywhere!! Thank goodness I can see Rainbow 1!! We want to be able to reliably see our beloved Redskins in HD!! 

--Doug


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## Geronimo (Mar 23, 2002)

I live abouta block away on one of the streets crossed by Carolyn and Nicholson. We are really close. You probably see me walking the dogs past your house. It's a small world. PM me sometime.


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## Geronimo (Mar 23, 2002)

I don't disagree DJ but the other side of the coin is that it is basically a sales tax like any other. It replaced a long lsit of taxes on some of the items now covered. It is allegedlya revenue neutral tax collecting the same revenue the old one did. Of course we have heard that before.


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