Satellite Companies Sue Massachusetts Over Satellite Tax

DISH and DirecTV are filing suit today in Massachusetts Superior Court against the state of Massachusetts over its recent decision to levy a 5% state sales tax on satellite service.

They argue the tax is discriminatory because no similar tax is levied on cable. "The lower sales tax imposed on cable subscribers serves only the parochial economic interests of those businesses and deprives the public of sales tax revenues." DISH and DirecTV argue that that 5% difference could be enough to persuade the 275,000 satellite subs in the state to switch to cable, which already claims 1.9 million. It also points out that the state is forgoing another $80 million in revenue that it could use in the current economic crisis.