DirecTV fights california dish tax

A proposed five per cent satellite dish tax has been described as anti-competitive by satellite operator DirecTV.

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By  Marcus Webb Published  August 13, 2002

A proposed five per cent satellite dish tax in California has been described by satellite operator DirecTV as anti-competitive and an apparent attempt by the cable industry to gain a competitive advantage by burdening satellite TV customers with a tax that is not imposed on cable TV customers.

The planned DBS (Direct Broadcast Satellite) tax is included in a budget bill that was narrowly defeated in the California Assembly last week, but which is likely to be re-introduced this week by Assembly Speaker Herb Wesson (D-Culver City). California leads US satellite TV viewing with more than 2.3 million subscribers.

Roxanne Austin, President and COO at DirecTV comments, "If the satellite TV tax is approved, what other consumer services will be taxed next? This may well open the floodgates," adding that Californian satellite subscribers already pay between US$14 and $25 state sales taxes when buy DirecTV equipment.

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