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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.
Copyright © 2007, Davis Wright
Tremaine LLP.
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