The Florida Supreme Court is mulling what to do about surcharges for television subscriptions. The state taxes satellite almost twice as much as cable.
Satellite and cable service providers collect taxes in their monthly charges—just not the same amount. The satellite industry, which charges almost double cable, says this is discriminatory. But Florida Department of Revenue attorney Jonathan Williams says satellite is actually coming out ahead.
“In every single year examined in this case satellite providers enjoyed a tax advantage over their pay TV competitor, cable,” Williams argues. “Plainly, satellite is not the victim.”
That’s because cable companies often collect local taxes in addition to state levies. Satellite is subject to a higher state rate but federal law prohibits local taxes.
