I 
107TH CONGRESS 
2D SESSION 
H. R. 5429 
To provide an exemption from local taxation for direct-to-subscriber satellite 
service providers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 23, 2002 
Mr. TOM DAVIS of Virginia introduced the following bill; which was referred 
to the Committee on the Judiciary, and in addition to the Committee on 
Energy and Commerce, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To provide an exemption from local taxation for direct-to- 
subscriber satellite service providers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Satellite Services Act 
of 2002’’. 
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SEC. 2. PREEMPTION OF LOCAL TAXATION WITH RESPECT 
TO 
DIRECT-TO-SUBSCRIBER 
SATELLITE 
SERVICES. 
(a) EXEMPTION FROM LOCAL TAXATION.—A pro-
vider of direct-to-subscriber satellite service shall be ex-
empt from the collection or remittance, or both, of any 
tax or fee imposed by any local taxing jurisdiction on di-
rect-to-subscriber satellite service. 
(b) PRESERVATION
OF STATE AUTHORITY.—This 
section shall not— 
(1) apply with respect to a tax or fee imposed 
by a State, or 
(2) prevent a local taxing jurisdiction from re-
ceiving revenue derived from a tax or fee imposed 
and collected by a State. 
SEC. 3. STATE TAXATION OF DIRECT-TO-SUBSCRIBER SAT-
ELLITE SERVICE. 
Notwithstanding the authority of a State to impose 
taxes and fees, such State may not impose a tax or fee 
with respect to direct-to-subscriber satellite service if— 
(1) the place of primary use of such service is 
not physically located within the physical boundaries 
of the State, or 
(2) the law of such State does not authorize the 
imposition of such tax or fee. 
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SEC. 4. DEFINITIONS. 
For the purposes of this Act: 
(1) DIRECT-TO-SUBSCRIBER SATELLITE SERV-
ICE.—The term ‘‘direct-to-subscriber satellite serv-
ice’’ means the distribution or broadcasting of pro-
gramming transmitted or broadcast by satellite di-
rectly to the satellite service subscriber’s receiving 
equipment without the use of the provider’s ground 
receiving or distribution equipment, except equip-
ment at the subscriber’s premises or in the uplink 
process to the satellite. A service that otherwise 
qualifies as a direct-to-subscriber satellite service as 
defined in this paragraph, but that uses terrestrial 
repeater transmitters to retransmit signals received 
from the provider’s operating satellites, shall none-
theless be treated as a direct-to-subscriber satellite 
service. 
(2) LOCAL TAXING JURISDICTION.—The term 
‘‘local taxing jurisdiction’’ means any municipality, 
city, county, township, parish, transportation dis-
trict, or assessment jurisdiction, or any other local 
jurisdiction in the territorial jurisdiction of the 
United States with the authority to impose a tax or 
fee, but does not include a State. 
(3) PLACE OF PRIMARY USE.—The term ‘‘place 
of primary use’’ means the residential street address 
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or the primary business street address representative 
of where a subscriber’s use of direct-to-subscriber 
satellite service primarily occurs. 
(4) PROVIDER OF DIRECT-TO-SUBSCRIBER SAT-
ELLITE SERVICE.—For purposes of this section, a 
‘‘provider of direct-to-subscriber satellite service’’ 
means a person who transmits, broadcasts, sells, or 
distributes direct-to-subscriber satellite service. 
(5) STATE.—The term ‘‘State’’ means any of 
the several States, the District of Columbia, or any 
territory or possession of the United States. 
(6) TAX OR FEE.—The terms ‘‘tax’’ and ‘‘fee’’ 
mean any local sales tax, local use tax, local intan-
gible tax, local income tax, business license tax, util-
ity tax, privilege tax, gross receipts tax, excise tax, 
franchise fees, telecommunications tax, communica-
tions tax, or any other tax, license, or fee that is im-
posed for the privilege of doing business, regulating, 
or raising revenue for a local taxing jurisdiction. 
SEC. 5. EFFECTIVE DATE; APPLICATION. 
This Act shall take effect 120 days after the date of 
the enactment of this Act and shall not apply with respect 
to taxes and fees payable for direct-to-subscriber satellite 
service provided before such date. 
Æ 
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