IP: Taxing satellites

[David Farber <dave@farber.net>]

>X-Lotus-FromDomain: COMPUTAX
>From: Richard_Jarvis@cch.com
>To: farber@cis.upenn.edu
>Date: Wed, 11 Jul 2001 08:30:29 -0500
>Subject: Taxing satellites
>
>Since I specialize in state and local taxation, I would like to point out that
>the taxing of satellite property is not really a new idea. Just at the local
>level for property tax purposes it might be a little novel. For state 
>income tax
>purposes, it is common to calculate the value of satellites and how often they
>are used to either uplink or downlink to a particular state as a way of
>determining how much of the income from the bird should be taxed in the 
>state in
>question. It is pretty complicated and quite a mess to sort out.
>
>For property tax purposes, it is true that aircraft and other mobile property
>are taxed. Airlines often pay property taxes in counties that have major
>airports based on some sort of proportional use calculation. States try to
>determine the number of miles flown over the state in making their 
>calculations
>for income tax and sometimes even sales tax purposes. I'm sure Hughes is quite
>concerned given the value of the satellites in question and I'm sure that some
>smart assessor in LA has found a way to possibly solve many of the county's
>budget problems if this flies (no pun intended).
>
>Richard Jarvis
>Managing Editor
>CCH INCORPORATED



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