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New Boob Tube Tax

AB 551 suddenly popped up out of nowhere last week. In short, if you have satellite TV the Nevada Legislature doesn’t think you’re paying your fair share in taxes and intends to make you cough up some more dough. According to the language of the bill, satellite TV companies – primarily DishNet and Direct TV – would be charged a 5 percent tax on all revenue generated by, among other things:

“Recurring monthly charges; Event-based charges, including, without limitation, charges for pay per view and video on demand; Charges for the rental of set-top boxes and other equipment; Service charges, including, without limitation, charges for activation, installation, repair and maintenance; Administrative charges, including, without limitation, charges for service orders and service termination.”

And lest you think this tax on these businesses will be paid by the businesses themselves and not be passed on to you, the consumer, read Section 8 of the bill and weep: “A video service provider may pass the tax imposed by this section through to and collect the tax from its subscribers in this State.”

Folks, the Tax Man cometh…..and we’re all about to get a royal screwing unless legislative Republicans come to our rescue.