DirecTV hit with $15M tax bill in South Carolina

DirecTV rooftop satellite dish

A South Carolina appeals court has upheld a ruling (PDF) that DirecTV owes the state $15 million in back taxes. 

The satellite TV operator, now owned by AT&T, had disputed its state tax bill from 2006-2008, arguing that it does not owe nearly $6 million paid for taxes on subscriber fees. 

Not only have the state courts refused to reimburse DirecTV that money, the appeals court also upheld a 2015 administrative law judge’s ruling that the operator owes $6.65 million on subscriber-fee taxes from the period of 2009-2011. On top of that, it was upheld that DirecTV owes another $1.66 million in penalties for under-reporting its taxes during the latter two-year period. 


Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

Oh, and there’s also an interest charge of $653,425.

DirecTV must now decide whether to pay the bill or appeal to the state supreme court. 

“We are in the process of reviewing the decision and considering our options,” a DirectTV spokeswoman told the local Charleston Post and Courier last week. 

DirecTV argued that its income was primarily derived from content development, marketing, broadcast operations and customer service, which should result in a different approach to calculating its income for tax purposes.

Suggested Articles

Amobee is launching a data marketplace for connected TV advertising to provide brands and agencies with access to data for activation across connected TV and…

When Charter and Disney earlier this week announced their new carriage agreement, they included news about cooperatively working against video piracy, which…

Cord cutters who opt for streaming video services instead of traditional pay TV will inevitably increase their broadband consumption. But some new research…