Taxing American Listeners

Radio Record, Volume IV, Issue 38, 3 April 1931, Page 5

Taxing American Listeners

Attempt Fails

AN important legal precedent has just been established in American radio law by the decision of a Federal Court. The Court was called upon to test the validity of a law passed last year by the State of South Carolina providing for a graduated wireless tax on wireless séts. This was the first law passed. in the United States attempting to raise revenue by this means. It proposed to levy all owners of receiving sets in South Carolina an annual tax rising progressively to a maximum of 8.50 dollars (10s.) per set. The Federal District Court for the Hastern District of South Carolina held that the law was unconstitutional, as being an interference with inter-State commerce (which is under the jurisdiction of the Federal Government) and could not, therefore, be enforced. It held that Station WBT, a party to the action, was engaged in inter-State commerce, as its programmes are received beyond the confines of its State of domicile. A decree was granted restraining the collection of the proposed tax on receiving sets. A special Court, consisting of three judges, heard the arguments of counsel. The action was brought by Station WBT, of Charlotte, North Carolina, a retail wireless dealer, and a broadcast listener.