03-23-1992 Council Packet - Laserfiche WebLink

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State Legislatures L-' K * k'ft Fairly CONTINVED fv.:- BRC will be the focus of NJCTA’s efforts in the near term, she said. In Illinois, a conprehensive telecommunications statute due to sunset at the end of 1991, but extended one more year. win be introduced again after inter-industry discussions, ac cording to Illinois Cable TV Association executive director Gary Maher, but that’s the only cable-related bill there. And in Pwnsylvania, Bell of Pennsylvania is behind a massive telecommunications infrastructure bill that will be introduced shortly, but there's not much other cable-related activity, according to Pennsylvania Cable TV Association qiokesman Bill Cologie. **We expect it will be introduced shortly, and we of course will do everything we can to prevent the phone companies from being aWe to compete with us in an unfair way.” he said. A few sta*«^ dtat have traditionaUy taken an activist statKC toward cable, such as New York, Massachusetts and Con- nectkttt, will again generate lots of biUs, but most of them not new, lobbyists stud. In Massachusetts, for example. Steel said NECTA has counted 13 bills so far — including one measure that sur faces annually to raise franchise fee payments from $1.30 a household to the maximum allowable 5 percent of gross revenues — and expects about 20. In New York, Cable TV Association of New York lobbyist Andy Rossc said the industry is closely monitoring as many I as 40-50 bills, that address issues ranging from labeling of cable-ftady TV sets to a pfx>hibition for charges for second set hookups. * There have also been "some preliminary rumblings” about a sales tax, Rosse said, “but nothing is out there right now.” In fact, association ofTicials said not much new or partic- ulariy worrisome is happening in state legislatures in Ohio, . Texas, Florida, South Dakota. Virginia, New Hampshire, Vetmont and Minnesota. Not surprisingly, they indicated their focus is on their state’s U.S. House delegation and visits to representatives both locally and in ^K^ington. They said they look forward to early direction from the National Cable TV Association concerning a specific strategy, but have already been out dL- cussing the basic isstws, including provisions contained in legislation passed last month by the Senate. Tax issues, however, have not gone away. For example, in a few states where sales or utility tax ex emptions have applied to all or part of a cable bill, those ex- . emptions may be threatened. In Tennessee, the cable association last year managed to clarify cable’s exemption from a sales tax on basic and ex tended basic service. This year, said Tennessee Cable TV As sociation executive director Dan Walter, the legislanjrc is faced with a court challenge to its methods of funding public schools, and may either raise the sales tax half a percentage point or take away all exemptions as a way of resolving the problem. Walter said the exemption is worth about $ 12 mil lion. f uiet for Cable Tennessee cable operators have readied 30-second com mercials and bill stuffers. "We will be prepared to marshal our subscribers to beat that tax on basic," he said. The tax would also be extended to advertising and newsprint In Virginia, cable operators rallied early to kill a measure in the sute senate that would have removed cable’s exemp tion from a sales tax. according to a spokeswoman for the Virginia Cable TV Association. In Missouri, the legislature has considered uJdng away ca ble’s exemption from a 3 percent sales tax. as a mechanism for funding the Missouri Arts Council, according to the St. Louis Post-Dispatch. Missouri Cable TV Association offi cials could not be reached for comment In Florida, the subjection of cable to a utility tax has also been discussed as a method of raising school funds. The Florida Cable TV Association has touted its educational pro grams around the state and, according to FCTA president Steve Wilkerson. few lawmakers are eager to tax a consumer service ir. this economy. The Texas state Supreme Court has also repeatedly thrown own pians for financing public schools, forcing that state to reconsider its tax policy as well, according to Texas Cable TV Association president Bill Arnold. Cable is already subject to the full sales tax in the state, which generally totals 8.25 percent, he said; a reform in school financing may require a corporate income tax as the state constitution currenily forbids a personal income tax.