New York Latest to Propose Cable, Satellite Taxes

Cable and satellite companies and their customers could be paying more for service in New York State, based on a proposed budget presented Tuesday by Gov David Paterson (D). Among the 88 new fees, 10 fines and 39 new tax items in the proposed budget, Gov Paterson has recommended applying a sales tax on video and radio services delivered by cable, satellite or "by similar means." The governor justified the recommendation noting that 23 other states tax video services. The current sales tax in New York state is 4%. Some telephone customers could also pay more on a recommendation to increase the regulatory fee paid by utilities. That levy would increase from .33% of interstate revenues to 1%.