President's Jobs Bill Includes Spectrum Tax

Adds Spectrum Tax

Among the provisions of President OBAMA's "American Jobs Act" sent to Congress this week are sections establishing the authority to impose spectrum taxes on radio broadcasters and the incentive auctions of spectrum proposed by FCC Chairman JULIUS GENACHOWSKI.

Section 278 of the act establishes the authority for the FCC to institute spectrum license user fees, which would require the Commission to collect $200 million in fiscal year 2012, rising to $550,000 per year in fiscal years 2015 through 2021.  Television broadcasters and "public safety services" would be exempt from the fee.  Failure to pay in a timely manner would be punishable by loss of license or permit with 30 days' notice to pay or show cause why not.  Funds collected through the new taxes would go directly to the Treasury's General Fund.

The bill as presently constituted is likely to encounter stiff opposition in Congress, where the Republican majority has given the proposals a cool reception.

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