Proposed radio performance tax would be major blow to local stations
Story Created:
Sep 2, 2010 at 3:12 PM EST
Story Updated:
Sep 2, 2010 at 4:16 PM EST
UTICA, N.Y. (WKTV) - Radio has weathered some hits in recent years - satellite radio, downloaded music, etc. Now, yet another hurdle lurks on the horizon - the radio performance tax.
Two out-of-state members of Congress have proposed legislation that would impose a tax to radio stations, which would be distributed to recording labels. Local radio station owners say, if passed, the tax would hurt local radio.
"It's hard enough as it is to maintain localness, to maintain live jocks all the time, that when you start increasing your expenses, the only thing you can do is reduce your payroll," said Ken Roser, President of Roser Communications Network. "And when you start reducing your payroll, you ultimately reduce your localism and the foundation of local radio is localism."
Bill McAdams, Operations Manager of Townsquare Media, says the tax, if enacted, would hurt emerging artists, as many radio stations struggling in a difficult economy would not pay to play the music of an unknown artist.
Congressman Michael Arcuri has co-sponsored a resolution in direct opposition to the proposed radio performance tax. He's also written a letter to House Speaker Nancy Pelosi, asking her not to bring it out for a vote.
Arcuri's opponent in November's race, Republican Richard Hanna, says he is fundamentally opposed to any additional taxes on small businesses.
The exact amount of money that radio stations would pay in the new tax isn't yet clear; it would depend on gross sales and either be a percentage of profits or a flat fee.
Most Popular