Spectrum Tax Initiated In Federal Budget

The Clinton Administrationís new budget calls for TV-station owners to begin paying a ""spectrum tax"" on their existing NTSC channels starting September 1999. The tax will be due until such time the station owners relinquish their analog bandwidth and convert completely to digital transmissions. The new tax which is opposed by the TV industry and Republican supporters in Congress, is estimated to raise $200 million a year. Current government policy allows station owners to keep their analog and digital channels without paying a fee through 2006 ñ the target date for the nationís switch to total digital TV. The Clinton Administration believes that the new tax will encourage station owners to speed up their conversion to digital broadcasting. But Republicans opposing the budget item believe the tax will make the transition more expensive, not more expeditious.