Louisiana House Bill HB486

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 5/17/11
• Engrossed: 5/24/11
• Refer: 5/25/11
• Report Pass: 6/6/11
• Refer: 6/7/11

Caption

Clarifies that video-on-demand and pay-per-view services shall be exempt from state and local sales and use tax (RE1 SEE FISC NOTE GF RV See Note)

Impact

The enactment of HB 486 is intended to provide clarity and maintain consistency in the taxation of cable and satellite services. The bill establishes that installation and delivery fees, collected solely from the subscriber for regular service, will be exempt from sales taxes, thus incentivizing subscribers while also retaining existing interpretations of law without introducing new tax structures. This clarification could positively influence the accessibility and affordability of cable and video services for consumers.

Summary

House Bill 486 aims to clarify tax exemptions related to the installation and service of cable television and similar video services. The bill specifically defines 'regular service' to include a range of offerings such as basic channels, premium channels, video-on-demand, and pay-per-view services. By retaining the existing sales tax exemption for these services, the bill seeks to ensure that the associated installation and delivery fees are not subjected to state and local sales taxes, ensuring financial relief for consumers receiving these services.

Sentiment

The sentiment surrounding HB 486 appears largely favorable among its supporters, who view the bill as a necessary update to the existing tax framework concerning video services. The majority of votes in favor of the bill suggest a strong consensus among legislators regarding the benefits it offers to consumers. Critics, if present, may view the bill as merely a reiteration of existing exemptions without addressing broader issues within the tax system; however, specific criticisms were not extensively documented.

Contention

While general support for HB 486 prevails, any contention surrounding the bill likely relates to the existing taxation system overall, with concerns that similar exemptions could create inequities in the market for media services. The bill does not apply to the purchases made by cable or satellite systems themselves, which may lead to debate about the effectiveness of tax exemptions in stimulating competition and service provision within the telecommunications landscape.