Broadcast Advisory Bulletin
FCC Announces Broadcaster Regulatory Fees For
2007
Published by DWT's
Broadcast Group
[August 2007]
It is that time of year again. September is the month that Federal
Communications Commission (FCC) licensees, including radio and television
broadcasters, have to pay the federal government for the privilege
of being a regulated industry. The FY (fiscal year) 2007 Annual
Regulatory Fees must be paid to the FCC by Sept. 19, 2007.
Payment may be made by check, credit card, or wire transfer, and
can be submitted either in paper or electronically. Payments not
made by 11:59 p.m. on September 19 will face the addition of a 25
percent late fee.
On August 6, 2007, the FCC released its Order adopting the rules
for regulatory fees and establishing the fees that broadcasters
and other licensees must pay this year. For AM stations, these fees
range from $400 to $7,275, depending on the class of the station
and the population that the FCC estimates that the station serves.
For FM stations, the rates range from $575 to $9,125. UHF Television
stations will owe between $1,750 to $19,650, while VHF stations
will pay between $5,125 and $64,300. Satellite television stations,
which simply rebroadcast the signals of other stations, need pay
only $1,100. A copy of the relevant portion of the Commission’s
Order detailing the specific fees for the different types of broadcast
facilities is attached hereto as Attachment
1.
Although the regulatory fee covers the fiscal year Oct. 1, 2006
to Sept. 30, 2007, the current licensee of a broadcast station is
responsible for the payment of the fee. So even if you just recently
acquired a station, it is your responsibility to pay the 2007 regulatory
fee for that station. Furthermore, fees are based on the status
of the station as of Oct. 1, 2006. So stations that have upgraded
and received a license for new facilities since Oct. 1, 2006, would
pay for the facility as it was licensed on Oct. 1, 2006. Similarly,
new stations that were constructed and licensed after Oct. 1, 2006
pay only for the construction permit that was in place as of Oct.
1, 2006. And those who obtained initial permits after Oct. 1, 2006
can avoid payment of the fee until next year.
The FCC has a helpful web page (located at http://www.fcc.gov/fees/regfees.html),
which includes instructions for submitting the regulatory fees.
The site also contains a "Frequently Asked Questions"
section and links to the database where you can submit fees electronically.
The FCC also has a “look-up” database to allow stations
to confirm the amount owed for their stations, which is available
here. In addition, for those needing more detail, the Commission’s
full Order containing the fees for all types of licensees is available
on the Commission’s
website.
In recent years, the FCC has enforced aggressively the regulatory
fee filing requirement. A payment that is even one day late will
automatically incur the 25 percent penalty. And if the fees and
penalties are not paid after receipt of notice from the FCC, no
applications for the licensee will be accepted or processed until
the fees and penalties have been paid in full. That requirement
has delayed the processing of innumerable applications in the last
few years.
The FCC should be mailing notices to each licensee in the coming
weeks, setting forth how much each station owes. In the past, however,
not every station has received the notice, and not every notice
has been accurate. The FCC places the obligation on the licensee
to ensure that addresses in the Commission's database are accurate.
If the address is not accurate, or if the notice is not received
for any reason, the FCC will not allow that as an excuse for a late
payment. The bottom line is that licensees are responsible for paying
their annual regulatory fees, regardless of whether or not any notice
is received from the FCC.
Accordingly, licensees should submit their fees on time and make
certain the payments are accurate. Be sure to keep a copy of all
correspondence or electronic confirmations. Historically, the FCC’s
recordkeeping regarding regulatory fees has not been perfect, and
the process is handled by a third-party contractor, further increasing
the possibility of lost or incorrect payment records, and increasing
the difficulty of correcting problems when they occur. We suggest
that you take some extra time to ensure these fees are paid properly
and that payment records are retained, to avoid later problems.
For more information, please contact:
This advisory is a publication
of the Broadcast Group of Davis Wright Tremaine LLP. Our purpose
in publishing this advisory is to inform our clients and friends
of recent developments in the broadcasting industry. It is not intended,
nor should it be used, as a substitute for specific legal advice
as legal counsel may only be given in response to inquiries regarding
particular situations. Attorney Advertising. Prior results do not
guarantee a similar outcome. Thank you.
Copyright © 2007, Davis Wright Tremaine LLP.
return to broadcast group main page
|
