About 1 million cable subscribers will have to pay the new tax. All basic cable service now is exempt. Premium channels and other services that have never been exempt will continue to be taxed.
Cable companies fear they'll lose customers.
Advocates of the cable tax said it's fair. We had allowed them to keep basic service with no tax. Also, because taxes are already paid on a portion of the bill, collecting the new tax will be easy. Here's how the new cable tax works. Wireless cable, used mostly in the Knoxville area, will follow the same rate plan.