Something very similar- almost worse- happened here last spring.
Missouri bill aims at big papers
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JEFFERSON CITY — A bill endorsed by the Missouri House seeks to eliminate a tax break for newspapers — but only for The Kansas City Star and St. Louis Post-Dispatch.
Democrats and at least one Republican charge that the legislation is nothing more than retaliation aimed at the Post-Dispatch over an editorial the paper ran Sunday. The full-page editorial, headlined “House of Hypocrites,” lambasted House Republicans who voted to cut Medicaid while they receive taxpayer-subsidized health insurance as lawmakers.
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Byrd's amendment deals with a sales tax exemption that newspapers receive when they buy newsprint, ink, computers, film, printing plates and machinery to produce newspapers. In the same section of the law, there are 37 similar provisions exempting from sales tax equipment and materials purchased by industries ranging from agriculture to railroads to barge companies.
However, Byrd's amendment would only eliminate the newspaper printing supplies exemption for a “publicly traded company” with annual operating revenues of more than $250 million and a “Missouri-based” average daily newspaper circulation of 200,000 or more.
Byrd said taking away the tax break for the two newspapers would generate an estimated $6.9 million to the state and some $4 million for local governments.
The amendment narrowly made it onto the bill by a vote of 74-72.
The Missouri Press Association released a statement criticizing the amendment, calling it “the most direct attack on Missouri newspapers in recent memory.”
The association said the exemption, which applies to all paid circulation newspapers in Missouri, has been a state statute since 1998 and “all newspapers should stand together on this issue.”
Star president and publisher Arthur S. Brisbane questioned Byrd's intent in pushing the amendment and warned that it would set a dangerous precedent if passed.
“This appears to be intimidation by legislation, not sound public policy,” he said.
Brisbane pointed out that the current statute applied to dozens of industries and was the result of a Missouri Supreme Court ruling. Singling out the Post-Dispatch or The Star because lawmakers disagreed with an editorial opinion would send a “chilling message,” not only to media outlets, but also to any company or constituent who spoke out against a lawmaker or legislative action.
http://www.kansascity.com/mld/kansascity/news/local/8442999.htm?1c