MLC teams up with DISH and DIRECTV to fight for the exclusion of television services from state-level paid services taxation.

The Challenge
DISH and DIRECTV faced a significant challenge when the issue of sales tax on services surfaced in Michigan. All television providers in Michigan would be affected by the proposed tax, yet satellite providers would take the hardest hit.

Cable companies sought a significant credit against the tax for fees paid for using the public right of way. Since satellite technology sends the signal straight to the subscribers house, DISH and DIRECTV would be hit with the full force of the tax. This is where MLC went to work.

The Solution
MLC set out to lobby for the exclusion of the entire paid television industry from falling into the new tax category. Since satellite companies aren’t historically taxed on a state level, DISH and DIRECTV had a very minor presence at the Capitol and far fewer connections when compared to their cable company counterparts. MLC knew that the biggest challenge would be competing with cable’s many corporate representatives and state-level lobbyists.

A major component to fighting the legislation was driving action among satellite television customers, which was made possible through both DIRECTV and DISH services. By reaching out to subscribers, DISH and DIRECTV activated a grassroots outreach program through a dedicated television channel and phone program urging customers, who would pay the tax, to contact their legislators.

The Results
By utilizing a thoughtfully crafted campaign, and the client’s resources, MLC successfully fought to exclude paid television services from being taxed at the state level. MLC’s many years of experience in Lansing had unbeatable benefits, including a keen sense of which legislators would support the campaign. Understanding what motivates them can be an enormous advantage for gaining constituents who will stand by—and fight for—your cause.

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