Satellite Ops Sue Over MA Tax

A Massachusetts tax on satellite TV service has drawn legal fire from the two major satellite operators.

The five percent tax is part of a state budget plan approved last summer and due to take effect this year. DirecTV and the Dish Network have sued the state over it, calling it "discriminatory" because there is no directly comparable tax on cable service. Cable operators do pay franchise fees to municipal governments. Still, the satellite ops say the tax will drive their subscribers to cable.

Similar suits are pending in Florida, Ohio, and Tennessee.

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