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Satellite Firms Launch Florida Suit

(The Hollywood Reporter) -- DirecTV and EchoStar Communications have jointly filed a lawsuit challenging the constitutionality of provisions of Florida's communications services tax law.

The two companies allege that the law discriminates against satellite TV customers

because they are charged a higher rate (10.8%) than cable customers (6.8%).

Under the law, a cable operator's franchise fees, including the costs of physically distributing the signal to homes, can be used to offset the companies' tax obligation, while satellite companies pay the full amount.

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