Broad Support Seen for Bill to End Unfair Satellite Tax; Majority Says It's Unfair to Tax Satellite But Not Cable Television

Broad Support Seen for Bill to End Unfair Satellite Tax; Majority Says It's Unfair to Tax Satellite But Not Cable Television

COLUMBUS, Ohio, Dec. 1 /PRNewswire/ -- An overwhelming majority of Ohio residents back legislation to repeal the state's sales tax on satellite television and believe that it is unfair to tax services like DIRECTV and DISH Network but not cable, according to a new survey commissioned by the Satellite Broadcasting and Communications Association (SBCA).

"When it comes to taxing paid television, the taxman is playing favorites by giving a handout to cable users but the back of his hand to those who use and rely on satellite television services," SBCA President Joe Widoff said. "Fairness is a central tenet of America, which is why people in Ohio support repealing the tax on satellite television services."

Currently, the state of Ohio charges satellite television users a 5.5% sales tax but does NOT charge cable users any such tax. As a result, satellite users have paid about $100 million to the state while cable users have escaped the tax. Ohio is the only state in the country to levy a tax on satellite users but not cable subscribers.

A bill sponsored by State Rep. Louis Blessing, the "Ohio Video Tax Fairness Act," would drop the sales tax on satellite television services, reducing the bill for the approximately one million households that subscribe to satellite television.

"Satellite and cable providers should compete for subscribers on a level playing field by giving consumers what they want: lower prices, higher quality and better service," Widoff added. "But this tax tilts the playing field in the direction of one industry over the other and that's simply not fair."

The SBCA survey polled 400 Ohio households that subscribe to a paid television service (cable or satellite) selected randomly from across Ohio. In addition, 100 Ohio households that subscribe to a satellite television service were also surveyed. The poll was in the field from October 27 to November 6, 2008 and was conducted by Dr. Orie V. Kristel from the Columbus-based research firm, The Strategy Team, Ltd.

Specifically, the SBCA poll found that:

-- Eighty-six percent of Ohioans would tell their elected representatives to support the Blessing legislation and repeal the tax on satellite television subscribers.

-- Almost two-thirds of Ohio satellite users believe that repealing the state sales tax on satellite television subscribers is a fair remedy and would provide them with financial savings.

-- About a third of satellite subscribers would be more likely to support lawmakers who back the repeal of the satellite tax.

Widoff encouraged voters to urge their representatives in the state legislature to back the Blessing bill and said the SBCA had set up a website to make it easier for people to contact their representatives. Satellite subscribers who want to end the Ohio satellite penalty should visit http://www.stopsatellitetaxohio.com/ .

Source: SBCA

CONTACT: Joe Widoff, SBCA, +1-202-349-3656

Web site: http://www.stopsatellitetaxohio.com/

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