DIRECTV v. Utah State Tax Commission

Associate Chief Justice

LEE, opinion of the Court:

1] 1 In this case we consider a constitution al challenge to Utah's pay-TV sales tax scheme, The scheme provides a sales tax credit for "an amount equal to 50%" of the franchise fees paid by pay-TV providers to local municipalities for use of their public rights-of-way. Not all pay-TV providers pay franchise fees, however. Cable providers employ a business model that triggers franchise fees (and, by extension, the tax credit); satellite providers use a different model that triggers no such fees (or credit). The satellite providers filed suit,…