Sales Tax Increase Could Mean Higher Cable Rate
RALEIGH, N.C. - Cable companies are concerned about a possible increase in the state sales tax on cable and satellite TV.
The companies say that customers could see an increase in cable costs if the industry isn't given a tax credit it wants from state lawmakers.
The sales tax could be raised to 7 percent. Cable companies currently pay a 5 percent tax to local governments.
Satellite TV companies say a tax credit for cable companies would be unfair and an increased tax is merely the cost of doing business.
Satellite companies don't pay local taxes, but do pay a 5 percent state tax and pay a fee to the federal government for using satellites in space.