Kentucky May Consider Communications Tax

[Gregg Lengling]

A move to tax telecommunications services such as satellite TV in Kentucky may have received a boost last week when Gov. Ernie Fletcher approached state lawmakers about overhauling some of the state's tax provisions.

News sources in the state said Fletcher has told lawmakers he wants to lower personal and corporate taxes. To offset some of the revenue lost from those tax cuts, the Kentucky governor said he would like to apply new taxes to telecommunications services.

A new sales tax of about 7.5 percent would be assessed on telecommunications, described as everything from satellite TV to telephone service. Fletcher reportedly told lawmakers the tax would generate more money for the state and address a recent court decision that found disparities in Kentucky's telecommunications taxes.

At the moment, Kentucky lawmakers haven't moved on the proposals.

Kentucky is a handful of states considering new taxes on communications and pay-TV services. Others include Arizona and Arkansas.