TREESH V. DIRECT TV, INC.
REVENUE AND TAXATION: Utility taxes
PUBLISHED: REVERSING AND REMANDING
PANEL: WINE, PRESIDING; HENRY CONCURS; THOMPSON DISSENTS BY SEPARATE OPINION
DATE RENDERED: 09/07/2007
Held the tax authorized by the legislation here being attacked (KRS 160.614(3)) is for state purpose. Therefore, the provision of the Telecommunications Act which preserves the right of a state to tax the services of a DBS provider allows for the taxation scheme outlined in KRS 160.614(3). Kentucky’s Courts have ruled consistently that the local district boards of education and the taxes they assessed were a state concern. A board of education in Kentucky is performing a function of the state in operating the public schools as state institutions.” Commonwealth v. Louisville National Bank, 220 Ky. 89, 294 S.W. 815 (1927)(School taxes are classified as state and not local taxes). However, any DBS or wireless cable service provider required to pay the utility tax may increase its rates up to 3% to cover the cost of the tax.