I
107TH CONGRESS
2D SESSION
H. R. 4869
To preempt of local taxation with respect to satellite digital audio radio
services and to provide for determining State authority for taxation
of satellite digital audio radio service.
IN THE HOUSE OF REPRESENTATIVES
JUNE 5, 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 preempt of local taxation with respect to satellite digital
audio radio services and to provide for determining State
authority for taxation of satellite digital audio radio serv-
ice.
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 Radio Free-
dom Act’’.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) 
CUSTOMER.—The 
term 
‘‘customer’’
means—
(A) a person or entity that contracts with
a provider of satellite digital audio radio serv-
ice; or
(B) if the end user of such satellite digital
audio radio service is not such contracting
party, the end user of such satellite digital
audio radio service, but only for purposes of de-
termining the place of primary use;
but does not include a reseller of satellite digital
audio radio services.
(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
or the primary business street address representative
of where the customer’s use of the satellite digital
audio radio service primarily occurs.
(4) PROVIDER OF SATELLITE DIGITAL AUDIO
RADIO
SERVICE.—The term ‘‘provider of satellite
digital audio radio service’’ means a person who
transmits, broadcasts, sells, or distributes satellite
digital audio radio service.
(5) SATELLITE
DIGITAL
AUDIO
RADIO
SERV-
ICE.—The term ‘‘satellite digital audio radio service’’
means any radio communication service provided in
the 2320–2345 MHz frequency band pursuant to a
license from the Federal Communications Commis-
sion.
(6) STATE.—The term ‘‘State’’ means any of
the several States, the District of Columbia, or any
territory or possession of the United States.
(7) 
SUPPLEMENTAL
TERRESTRIAL
RE-
PEATER.—The term ‘‘supplemental terrestrial re-
peater’’ means a complementary terrestrial trans-
mitter used to retransmit signals received from one
or more satellites used to provide satellite digital
audio radio service.
(8) 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,
other than ad valorem property taxes.
SEC. 3. PREEMPTION OF LOCAL TAXATION WITH RESPECT
TO DIGITAL AUDIO RADIO SATELLITE SERV-
ICE.
(a) PREEMPTION.—
(1) EXEMPTION FROM LOCAL TAXATION.—No
tax or fee shall be imposed by a local taxing jurisdic-
tion on the provision, purchase, or use of satellite
digital audio radio service, or on a provider of sat-
ellite digital audio radio service.
(2) EXCEPTION.—Subsection (a)(1) shall not
apply to any tax or fee imposed by any local taxing
jurisdiction on satellite digital audio radio service to
the extent that a provider of satellite digital audio
radio service owns, leases, or otherwise uses a sup-
plemental terrestrial transmitter that is physically
located in such jurisdiction.
(b) PRESERVATION
OF STATE AUTHORITY.—This
section shall not be construed to prevent taxation of a pro-
vider of satellite digital audio radio service by a State or
to prevent a local taxing jurisdiction from receiving rev-
enue derived from a tax or fee imposed and collected by
a State.
SEC. 4. STATE TAXATION OF SATELLITE DIGITAL AUDIO
RADIO SERVICES.
(a) LIMITATION.—This section does not provide the
authority for a State to impose a tax or fee unless all of
the following circumstances exist:
(1) The place of primary use is physically lo-
cated within the physical boundaries of the State.
(2) The law of such State authorizes the impo-
sition of such taxes or fees.
(b) CHARGES.—
(1) SOURCING FOR PURPOSES OF STATE TAXES
AND FEES.—All charges for satellite digital audio
radio services subject to imposition of taxes or fees
by a State shall be sourced to the customer’s place
of primary use as defined in section 2, regardless of
where the satellite digital audio radio service trans-
mission services originate, terminate, or pass
through.
(2) SOURCING
FOR
OTHER
PURPOSES.—Not-
withstanding the law of any State, all charges for
satellite digital audio radio service shall be sourced
to the customer’s applicable residential street ad-