- Download this information as a one-pager
- March 19 San Antonio Express-News article
- Representative Eiland Press Release on HB 1900
Texas video customers are among the biggest losers in the Texas telecom tax structure:
- Texans are burdened with some of the highest cable and telecom taxes in the country.
- Cable video customers pay an average of over 14% in taxes on their monthly cable bill.
- Consumers who subscribe to cable television and wireline and wireless voice services pay an average annual tax bill of $318 – and much higher in many cases.
SB 1465 (Estes) / HB 1900 (Eiland) would provide a $115 million annual TAX CUT ($230 million per biennium), benefiting more than 5.5 million Texas video service subscribers (and directly impacting approximately 15.3 million Texans):
- Would apply same type of tax exemption to cable video service that has been successfully applied to Internet service since 1999. (See Texas Administrative Code, Rule §3.366)
- Specifically, the first $75 of a customer’s monthly cable bill would be exempt from state sales tax. This includes the customers of all terrestrial video providers, such as
- Time Warner Cable, Comcast, Suddenlink, Charter, Cable One, AT&T U-verse, Verizon FiOS, Grande, etc.
- To put this TAX CUT in perspective, the annual state “Sales Tax Holiday” provides approximately $68 million ($132 per biennium) in sales tax savings to Texas consumers over 3 days.
- This DIRECT TAX CUT for video customers would be realized every month of the year.