Broadcasters urge legislators to stand up for their local radio listeners by supporting the Local Radio Freedom Act, which opposes a performance tax.
For nearly a century, record labels and performers have thrived from airplay – which is essentially free advertising – from local radio stations. But as the big record labels struggle to keep profit margins high, they are urging Congress to impose a tax on these local radio stations that are, ironically, their greatest promotional tool.
In previous Congresses, legislation backed by the record labels was introduced to impose a new fee on local radio stations, simply for airing music on the radio. A performance tax could financially cripple local radio stations, harming the millions of listeners who rely on local radio for news, emergency information, weather updates and entertainment every day.
Radio's free promotion is worth more than $2.4 billion annually in music sales, concert tickets and merchandise to record labels. Here’s how:
Recognizing the promotional value of free radio airplay, Congress has repeatedly rejected the record labels’ attempts to impose a harmful performance tax on local radio stations.
The Local Radio Freedom Act (H. Con. Res. 13 and S. Con. Res. 6), which opposes any new tax, fee or royalty on local radio stations, has been reintroduced by Reps. Mike Conaway (TX-11) and Gene Green (TX-29) in the House and Sens. John Barrasso (WY) and Heidi Heitkamp (ND) in the Senate, respectively. These resolutions have strong bipartisan support with more than 180 cosponsors.