Stop Satellite Tax Now!

DIRECTV and DISH Network have filed lawsuits in three states seeking to overturn unfair taxes imposed only on satellite television customers. These suits were filed to protect satellite TV customers, who already pay their fair share of taxes and should not be forced to suffer from an unfair tax policy that singles them out for choosing a competitive and affordable alternative to cable.

Listed below are summaries of the lawsuits currently filed across the United States.

KENTUCKY
In 2005, DIRECTV, Inc. and DISH Network filed a lawsuit against a law passed in Kentucky that gave cable tax credits not available to satellite customers. These credits allowed cable companies to shift the costs they incurred in laying wires under public roads onto satellite TV customers, who receive their TV without the use of these wires. Unfortunately, the court upheld the tax. Now thousands of satellite TV subscribers are being punished simply for choosing their TV based on quality, customer service, and price.

FLORIDA
On May 4, 2005, DIRECTV Inc. and DISH Network, the two providers of satellite TV service in the nation, filed suit challenging the constitutionality of provisions in Florida's communications services tax law that discriminate against satellite TV services by imposing a higher tax than paid by cable subscribers.

MASSACHUSETTS
Defending the rights of thousands of satellite TV subscribers in Massachusetts, DIRECTV Inc. and DISH Network, the two providers of satellite TV service in the nation, filed a lawsuit January 2010 in the Suffolk County Superior Court challenging the constitutionality of Massachusetts's 5% discriminatory tax on satellite TV.

Over the last two years, the cable industry has been on a lobbying blitz trying to convince state legislatures to impose discriminatory taxes on its main competitor, satellite TV. The vast majority of state legislatures have rejected these discriminatory tax proposals. Unfortunately, a handful of states including Ohio, Florida, Tennessee, and Utah, have succumbed to cable's lobbying pressure and enacted these unfair tax schemes. The satellite television industry has aggressively pursued legal action against states imposing discriminatory taxes. DISH Network and DIRECTV encourage their customers and the hundreds of retailers in the state to contact the state agencies and legislators to voice their disapproval for discriminatory taxes that punish citizens for choosing satellite TV.

OHIO
In response to the Ohio Supreme Court's decision upholding the discriminatory tax on satellite TV subscribers, we filed a petition for a writ of certiorari with the United States Supreme Court on April 27, 2011. We are confident of our chances given the important issues in the case, the differing approaches taken by various state and circuit courts on those issues, and the strong and well-reasoned dissenting opinion of two Ohio Supreme Court justices. Over the last two years, the cable industry has been on a lobbying blitz trying to convince state legislatures to impose discriminatory taxes on its main competitor, satellite TV. The vast majority of state legislatures have rejected these discriminatory tax proposals.

TENNESSEE
We continue to fight Tennessee's discriminatory $15 tax exemption for cable. On February 15, 2011, we filed a motion for summary judgment asking the court to declare the exemption, which unfairly penalizes our customers with a tax that cable customers don't pay, unconstitutional. The Court heard argument on May 19, 2011 and took the matter under consideration.

NORTH CAROLINA
In 2003, DIRECTV, Inc. and DISH Network filed suit challenging legislation, enacted under pressure from cable’s army of lobbyists, which eliminated franchise fees paid by cable companies for use of public rights of way and made up the lost revenue by raising taxes on satellite subscribers. We filed a lawsuit to defend the rights of our consumers to fair taxation, arguing that they shouldn’t have to subsidize cable’s cost of doing business. Unfortunately, the court upheld the tax scheme. Now over 1.1 million satellite TV subscribers are being punished simply for choosing their TV based on quality, customer service, and price.

UTAH
On December 15, 2010, DISH Network, DIRECTV and an individual satellite TV subscriber filed a lawsuit in the Eighth Judicial District Court for Uintah County, Utah challenging the constitutionality of the cable-only tax credit. This tax credit unfairly burdens 360,000 Utah families who subscribe to satellite television with up to 60% higher state taxes than cable customers pay.

This tax punishes Utah residents for choosing satellite TV and gives cable an unfair market advantage over its main competitor.

Over the last two years, the cable industry has been on a lobbying blitz trying to convince state legislatures to impose discriminatory taxes on its main competitor, satellite TV. The vast majority of state legislatures have rejected these discriminatory tax proposals. Unfortunately, a handful of states including Massachusetts, Ohio, Florida, and Tennessee, have succumbed to cable's lobbying pressure and enacted these unfair tax schemes. The satellite television industry has aggressively pursued legal action against states imposing discriminatory taxes. DISH Network and DIRECTV encourage their customers and the hundreds of retailers in the state to contact the state agencies and legislators to voice their disapproval for discriminatory taxes that punish citizens for choosing satellite TV.