Telecommunications Study Committee
Nov 7th 2007David ShaferCommerce & Technology
The Senate Study Committee on Telecommunications Taxes, Fees and Franchising will meet again tomorrow, Thursday, November 3, at 1:30 p.m. in Room 450 of the State Capitol.
Currently, telephone, cable and satellite companies are regulated and taxed differently. But as technology converges, the differences between these companies have blurred. Cable companies offer telephone service over their TV cables and soon AT&T will be offering television service over its telephone lines.
Our committee has been charged with taking a comprehensive look at telecommunications and reporting back to the General Assembly before it reconvenes in January.
At the first meeting a month ago, we heard a number of proposals to “level of the play field” from industry groups and individual companies. At this meeting, we will hear from the Georgia Municipal Association and the Association County Commissioners of Georgia.
One issue that we will explore in more detail is the taxation of satellite dishes. Currently, cable and telephone companies who provide TV service pay a “franchise fee” – usually 5% of the bill. Satellite companies, on the other hand, pay no franchise fee.
The cable companies suggested at our last meeting that we should “level the playing field” by taxing satellite providers at the same rate as the franchise fee for cable service. They also suggested that the new revenue could be used to lower the rate to 3%. We will be hearing from the satellite companies tomorrow.
I will keep you posted.