Utahns likely to keep paying tax on cable TV

Tens of thousands of Utahns will keep on paying state sales tax on their cable TV service, the top two legislative leaders believe.

In the 2004 Legislature, set to convene Monday, House Majority Leader Greg Curtis, R-Sandy, will introduce a bill that would repeal the new tax, imposed last July.

But Monday, Senate President Al Mansell, R-Sandy, and House Speaker Marty Stephens, R-Farr West, both said they're guessing the tax won't be repealed — although it may be changed to make it more fair.

Dusting out revenue corners in the 2003 Legislature, lawmakers struck upon the idea of placing the current state and local sales tax on cable and satellite TV subscribers' bills. The new law took effect July 1.

But almost immediately, satellite TV bosses pointed out to the state Tax Commission that a federal law says such "airways" communication they provide can't be taxed by local cities and counties. So the city/county option sales tax was never applied to satellite customers' bills.

The cable TV firms then cried foul. Why should their customers get all of the new tax but not their competitors' customers? And a legislative interim study committee voted approval of Curtis' repeal bill.

But in a press conference Monday detailing the upcoming session, Mansell hit the crux of the issue: money.

Dumping the tax "comes with a large fiscal note, and I see little chance it will be repealed," said Mansell. Stephens then agreed with the Senate president's political assessment.

The tax brings in around $14 million a year, most of that coming to the state with a small slice going to local cities and counties that have adopted their portion of the sales tax.

And as legislators struggle to balance the 2004-2005 budget at the end of the 45-day general session, there will be so many needs Mansell doesn't see lawmakers giving up that $14 million in sales tax.

Other observations made by Mansell and Stephens:

• President Bush is a bigger draw than Gov. Olene Walker. Accordingly, lawmakers will change the day and time that Walker was supposed to give her first State of the State address. She was scheduled to address Utahns and lawmakers in a live TV broadcast from the Utah House Chambers next Tuesday evening. But that's the exact time Bush is giving his State of the Union address in the U.S. House. So, Walker's speech will be shifted to either Monday, Wednesday or Thursday night.

• Even before it got a chance to be debated, Curtis is withdrawing a bill that would have added another exemption to the Open Meetings Act. Curtis said he took on the bill, which he didn't think would be controversial, at the request of other leaders.