NAB President and CEO David Rehr urged lawmakers to oppose legislation introduced on February 4 that would force America's hometown radio stations to pay a new "performance fee" to the recording industry for music aired free on the radio. The legislation, introduced in the House, is supported by the Recording Industry Association of America (RIAA). A measure opposing last Wednesday's Congressional action is expected to be introduced shortly.

"Local radio broadcasters consider this fee a 'performance tax' that will not only harm your local radio stations, but will threaten new artists trying to break into the business as well as your constituents who rely on local radio," wrote Rehr. "Although the proponents of H.R. 848 claim this bill is about compensating artists, in actuality at least half of this fee will go directly into the pockets of the big record labels, funneling billions of dollars to companies based overseas."

Three of the four largest record label conglomerates – Universal Music Group, Sony Music Entertainment and EMI – are internationally based.

"Although the big record labels have seen their revenues decline over the last decade, local radio broadcasters are not the reason the recording industry is losing money, and it should not be the industry to fix it," wrote Rehr.

To read a version of Rehr's letter to House lawmakers, click here.

State broadcast associations representing all 50 states, as well as Puerto Rico and the District of Columbia, also issued a resolution on February 4 expressing opposition to a performance tax.