The latest - Performance Tax

[fmksey]

And this is bonkers!! The most recent communications from the Texas Association of Broadcasters ---
is it our fault that people are not CDs??



Dear Mark:

The Performance Tax fight intensifies this week in Congress as the House Judiciary Committee meets Wednesday, May 13, to “mark up” the record labels’ bill, HR 848. The bill requires each station making less than $1.25 million yearly to pay $5,000 yearly to the record labels. Rates for each station making more than $1.25 million yearly would be set by the Copyright Royalty Board (CRB) which also sets streaming rates.

Texas has several representatives serving on the Judiciary Committee. TAB has separately urged radio stations in all but one of those Congressional districts to reach out once more and ask their Congressmen to vote NO on the bill. (The only Texas member of the committee we are not lobbying is Rep. Sheila Jackson-Lee, D-Houston, who is one of the original co-sponsors of HR 848 and is unwavering in her support of the record labels’ effort.)

As the committee mark-up nears, Committee Chairman and HR 848 author Rep. John Conyers, D-Mich., is floating a tentative amendment that is still subject to change. It is intended to splinter the Radio industry’s opposition by lowering the base tax. If any tax is adopted, you can count on it increasing yearly forevermore. TAB opposes the amendment and any form of a Performance Tax.

DRAFT AMENDMENT

The draft amendment currently would change the flat $5,000 fee for smaller stations and establish a sliding scale based on revenues:

Commercial Stations

· Stations making less than $100,000/year will pay $500/year

· Stations making between $100,000-$500,000/year will pay $2,500/year

· Stations making between $500,000-$1.25 million/year will pay $5,000/year

· Stations making more than $1.25 million/year will still be subject to a rate set by CRB

Non-Commercial Stations

· Stations making less than $100,000/year will pay $500/year

· Stations making more than $100,000/year will pay $1,000/year

PERFORMANCE TAX IMPACT ON STATIONS

At TAB’s request, the NAB has prepared an estimate of the economic impact on Texas stations. In 2009 alone, a Performance Tax is conservatively estimated to cost Texas stations $136.5 million!

The estimate is based on the CRB’s streaming rates which increase every year. And, remember, the legislation assesses this tax on EACH LICENSE.

TEXAS’ CONGRESSIONAL SUPPORTERS

TAB – with the help of many broadcasters throughout the state – has secured the support of the vast majority of Texas’ congressional delegation. A current overview of each member’s position is posted online in conjunction with the economic impact estimate.

If you haven’t already thanked your Member of Congress for supporting us, please fax a brief thank-you note today. If your Member of Congress is NOT supporting us, please continue to reach out to and explain how the Performance Tax would affect your station and the community.

Thank you for all your efforts on this critically important issue!

Respectfully,

Oscar

Oscar Rodriguez, Vice President

Texas Association of Broadcasters

502 E. 11th Street, Ste. 200

Austin, TX 78701

Ph: 512-322-9944 – Fx: 512-322-0522

www.tab.org

[Dave Loudin]

I heard an anti-Performance Tax spot on WTOP this morning, sponsored by the NAB. The theme was "Don't feed the fat cat!"