Tax News

CCH (cch.taxgroup.com) reports:

The Connecticut utilities tax imposed on the gross earnings from the provision of community antenna television service, video programming service by satellite, and certified video programming service in the state does not conflict with and is not preempted by federal law that limits franchise fees or taxes imposed on cable system operators to 5% of gross revenues. The tax is imposed not only on cable operators but is extended to other video service providers. The tax is the same whether it is in regard to cable operators, satellite video service providers, or certified competitive video service providers and, as such, it is not unduly discriminatory against cable operators so as to effectively constitute a tax directed at the cable system. All the providers are treated equally under the tax. As a result, the tax is not a franchise fee subject to the 5% limitation of the Cable Communications Policy Act of 1984.
Opinion, No. 2007-014, August 31, 2007, ¶401-255
Other References:
Explanations at ¶80-110